Despite the widespread media coverage and hype surrounding electric vehicles (EVs), the reality is quite different from the perception that every driver is rushing to buy an EV. New figures indicate that Ford, in particular, is encountering difficulties as it produces more Mustang Mach-Es than it can sell, leading to a mounting pile of unsold inventory.
According to data from analytics firm Cloud Theory, Ford dealers experienced a significant decline in the “turn rate” of their Mach-E inventory. During the second quarter of 2022, they managed to sell 86.4 percent of their stock within 30 days. However, this figure dropped to 27.7 percent during the same period in 2023. Additionally, Ford’s sales of the Mach-E fell from 10,941 units in the three months leading up to July 2022 to 8,633 in Q2 of 2023.
The F-150 Lightning electric truck, another flagship EV from Ford, also seems to have lost some of its initial appeal. Although deliveries have increased compared to the previous year, and Ford plans to triple production by year-end, Cloud Theory’s data suggests a slowdown in the sales rate. The figures reveal that Ford successfully moved 70 percent of its Lightning inventory within 30 days during the April-June period of 2022, but this number nearly halved to 39.3 percent for the corresponding period in 2023.
In response to the declining turn rate, Ford’s head of U.S. sales analysis dismissed concerns, pointing out that EV sales in America had actually risen by almost 12 percent. The executive argued that the turn rate figure was misleading since the vehicles were spending more time in transit, implying that unsold Mach-E inventory was not accumulating at dealer lots.
However, an anonymous East Coast Ford dealer shared a different perspective with Insider, revealing that the dealership was even turning down some of the allocated EVs due to Ford’s production rate not aligning with customer demand. This source at the dealer expressed concerns about the situation, stating, “I think Ford’s got a real problem on their hands based on the bets they’ve made. We’ve never had [Lightnings and Mach-Es] in stock before.”
Ford’s struggle to balance the shifting supply and demand ratio is not unique, as Cloud Theory’s data also highlights a significant decline in the turn rate for other EVs, including the VW ID.4 and Hyundai Ioniq 5. It appears that automakers are grappling with the challenge of matching production levels with customer demand in the rapidly evolving EV market.
