Ford cuts F-150 Lightning manufacturing in half of as EV demand falters

Ford is slashing production of its all-electric powered F-one hundred fifty Lightning pickup truck via 50% next yr no matter increasing plant ability for the EV in 2023. The cuts, probable due to high fees and accelerated competition from fashions including the Tesla Cybertruck, result from "converting marketplace demand." With around seventy five,000 F-a hundred and fifty Lightning vehicles set for manufacturing in 2024, we could see more Cybertrucks produced at some stage in next year.

According to a memo seen by Automotive News, Ford's providers have been informed through the auto producer that from January, it's miles slashing the production fee of the F-a hundred and fifty Lightning from three,2 hundred vehicles per week right down to 1,600 trucks every week, reducing output through half.

The news is a wonder for the reason that Ford obtained two hundred,000 reservations for the EV ahead of its release in 2022. The organization even announced it was doubling its unique manufacturing output to one hundred fifty,000 and spent six weeks growing ability of the F-a hundred and fifty Lightning at its Michigan plant.

But call for for EVs isn't growing as quick as anticipated. CNBC reviews that despite the fact that income of the F-150 Lightning have gradually accelerated in 2023, attaining a monthly record of roughly four,400 bought in November, Ford has best offered 20,365 of the vehicles this yr. The business enterprise also paused a $12 billion funding in EV manufacturing after caution that electric powered vehicles are too highly-priced.

We've these days seen automobile sellers ask the Biden administration to gradual down its push to get greater EVs on the street because the automobiles haven't been selling thoroughly. Cost of residing and reliability issues have additionally played a part inside the faltering demand.

The Tesla Cybertruck nonetheless appears set to come to be a massive rival to the F-150 Lightning, no matter all of the proceedings geared toward the former. Elon Musk said Tesla is targeting manufacturing numbers of 250,000 Cybertrucks according to yr, though that might not grow to be a fact until after 2024. With Ford halving production of the F-one hundred fifty Lightning, it can lag behind the Cybertruck in terms of production prices subsequent 12 months.