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Ford Motor Co. is cutting 2024 production goals in half for its F-150 Lightning plug-in pickup truck — its signature electric vehicle — due to slowing demand for battery-powered models
Ford will cut planned production of its electric F-150 Lightning pickup truck in half for 2024, from an average of 3,200 vehicles per week to around 1,600 vehicles per week. Ford cited “changing market demand” in a supplier memo explaining the cuts.
Demand for electric vehicles has been slower than expected as prices and interest rates remain high. Sales of the F-150 Lightning have been increasing steadily in 2023, with a record of around 4,400 sold in November.
The automaker now intends to build 1,600 of the trucks a week next year at its plant in Dearborn, Michigan, down from a previous plan to manufacture 3,200 weekly, a company spokeswoman said. Ford has been informing suppliers of the production cuts on a model chief executive Jim Farley once said was “a test for adoption for electric vehicles” in America.
The move comes as Ford scales back spending on electric vehicles by US$12 billion and after it downsized by nearly half a battery factory it’s building in Michigan. Farley has said the robust EV demand the company expected hasn’t materialized because potential buyers are balking at high prices and spotty charging infrastructure.
EV sales growth in the United States will slow to 11 per cent next year from an estimated 47 per cent growth rate this year, according to a forecast by UBS Monday.
“(The) U.S. needs greater affordability” and model availability, the brokerage said in a report to investors. Automakers “seem to continually face new, unforeseen challenges.”
Ford also is lowering production of its electric Mustang Mach-E in Mexico and put on hold plans for a second battery factory in Kentucky.
“We will continue to match production to customer demand,” Ford said in a statement.
The latest cuts come despite the Lightning having its best sales month ever in November with 4,393 deliveries. Lightning sales in the third quarter fell 46 per cent as the automaker shut its factory for expansion and delayed delivery of the truck for “quality checks.”<
EV market leader Tesla Inc. has started rolling out its highly anticipated Cybertruck, which takes aim at potential Lightning buyers.
Despite issues in the EV market, a slowdown in the shift to electric models could benefit manufacturers’ profits, UBS noted in the report.
Automotive News earlier reported the Lightning production cut.
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