Ford has revised its production targets for the all-electric F-150 Lightning, intending to scale back output by approximately half in 2024. The new plan aims to produce around 1,600 units of the electric pickup truck weekly at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan, as opposed to the initially envisioned 3,200 units per week. This decision, driven by a need to align production with customer demand, is expected to be implemented by January 2024, according to a statement from a Ford spokeswoman.
The adjustment in production plans is outlined in a memo obtained by Automotive News, citing changing market demand as the primary reason for the reduction. The memo further emphasizes that Ford intends to maintain its existing production levels for gasoline-powered pickup trucks.
This move comes on the heels of Ford’s recent decision to defer a $12 billion investment earmarked for expanding electric vehicle manufacturing capacity in North America. In October, the automaker noted a shift in consumer willingness to pay a premium for electric cars, influencing its strategic decisions.
Ford’s Q3 2023 earnings report revealed a $1.3 billion operating loss for its Model e electric vehicle unit in the third quarter, marking a doubling of the previous year’s loss. The unit reported a cumulative operating loss of $3.1 billion for the first three quarters of the year, aligning with Ford’s earlier estimate of a $4.5 billion full-year operating loss.
Beyond Ford, the trend of reduced investments in electric vehicle manufacturing extends to battery suppliers such as LG Energy Solution (LGES) and SK On, who have scaled back their expansion plans in North America’s battery chain, citing sluggish demand in the electric vehicle market as a contributing factor.
