2023 Lightning Build and Price is Live .... $5000+ increase in price

[greenne]

What a mess they made. You simply can't change the price of something after the order is placed.

The difference is Rivian termed their process an "order", Ford terms their process a "reservation" and very clearly states a reservation does not guarantee a price, availability, or product. Rivian needs a better legal team.

Also-- Ford could tell all of us to F 'off and they still would sell every Lightning they could make--one look at dealer ADMs tells you that. Rivian has no other product to fund the company, they need the R1T to succeed or they are out of business. Also, Rivian is running on investment money right now.. nothing kills investment like bad press to make potential investors nervous. Ford is in an entirely different place than Rivian is.

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[p52Ranch]

Those that did receive an order invite and decided to wait for their trim were extended.

Those people will get first crack at ordering plus a PCO to offset the increases in price.

If you reserved on 5/20/21, then you will have to wait for an order invite and pay the increased prices.

Ford's announcement today gives some relief for folks who had a 2022 wave invite and extended to a 2023 model year. That private offer could be to honor the 2022 pricing. Not sure if Ford will make up 100% of the price increase or not.

 

[Roy2001]

well, you really didn't 'save' anything, you SPENT $80,000 !

I can flip it to save

 

[Firestop]

Ford's announcement today gives some relief for folks who had a 2022 wave invite and extended to a 2023 model year. That private offer could be to honor the 2022 pricing. Not sure if Ford will make up 100% of the price increase or not.

I too read that….depending on what the offer entails, what a way to build customer good will…….

 

[jb56]

Often wonder, where did all of these people suddenly appear that can afford $80,000 plus for a vehicle? Maybe they have been there all along and never noticed.

Yeah, this is pretty crazy. 90% of households have a combined household income below $200k, and honestly, even though you could afford it with less income than that, it's probably not a good decision to buy an $80,000+ vehicle if you make less than $200,000.

 

[jb56]

looks like an $8k bump for the Lariat I want. about 10%... I can live with that.

It's good you can live with that, but Ford is completely full of crap here. Everything they have done over the last 18 months has been about maximizing profit. They have learned that customers will put up with way more crap now, and Ford has capitalized by making a way bigger net income on lower revenue. So they figure there are enough people like you out there who will allow Ford to produce and sell less units and make the same profit as they would by selling more units at a lower price.

 

[sotek2345]

Yeah, this is pretty crazy. 90% of households have a combined household income below $200k, and honestly, even though you could afford it with less income than that, it's probably not a good decision to buy an $80,000+ vehicle if you make less than $200,000.

Right, but even if only the top 10%, or top 5%, are interested in the Lightning, that is plenty of people to sell every one.

5% of the US population is ~17 million people!

 

[metroshot]

Well, I can truely say I did win the lottery when I received my invite and had my MY22 order accepted/built/delivered!

Yes, now that I think back, waiting 430 days for my Lightning, I agree, we sure were lucky to get our MY'22 for MSRP and delivered !

Also very lucky that my wife's 2022 MME order is price protected when I ordered before the MY'23 price increases and loss of incentives. Can't wait to get the MME using Ford Options 2.74% + $2000 incentive when it finally gets delivered.

Just don't know if I will get that email from Ford saying the 2022 MME will be a 2023 and also have to deal with the private transitional offer....

 

[kbrannen]

> looks like an $8k bump for the Lariat I want. about 10%... I can live with that.
>
It's good you can live with that, but Ford is completely full of crap here. Everything they have done over the last 18 months has been about maximizing profit. They have learned that customers will put up with way more crap now, and Ford has capitalized by making a way bigger net income on lower revenue. So they figure there are enough people like you out there who will allow Ford to produce and sell less units and make the same profit as they would by selling more units at a lower price.

I don't like the price increase either, but can I point out that inflation is over 9% this year. Also, the new prices are for the next year. So while I don't like them, I can understand the price increase.

 

[jb56]

Right, but even if only the top 10%, or top 5%, are interested in the Lightning, that is plenty of people to sell every one.

5% of the US population is ~17 million people!

So, Ford is going to sell every lightning they make, by design. They will produce the number they think they can sell at these ridiculous prices. And they will profit because we will put up with it now, even though that used to not really be the case.

And sure, 5% of the US population is 17 million people. But there aren't 17 million truck buyers, or ev buyers, in the top 5%. I think a huge number of reservation holders have a household income of less than $200,000.

 

[jb56]

I don't like the price increase either, but can I point out that inflation is over 9% this year. Also, the new prices are for the next year. So while I don't like them, I can understand the price increase.

I personally don't feel that overall inflation is a good metric to use or justification for raising your prices. Sure, material costs will have an impact, but the increase in cost of eggs doesn't necessarily mean a tv should be more expensive. Sure, materials costs going up make a difference, but this is way more about a supply and demand issue than inflation. Companies love to use inflation as a cover for raising their prices though, even if their own costs aren't going up by the same margin as inflation. And Ford has clearly benefitted massively over the last few years.

 

[monsterlag]

I think a huge number of reservation holders have a household income of less than $200,000.

And I think you would be wrong. A lot of allocation is going to ZEV states that are very well of. Avg income in CA or NY is not the same as bumfuck USA.

 

[Pioneer74]

Just don't know if I will get that email from Ford saying the 2022 MME will be a 2023 and also have to deal with the private transitional offer....

I have those concerns too. We ordered a Premium ER in February. I'm the next order in line at my dealer but with only one more month of 2022 scheduling, it might get pushed. I was hoping to have both vehicles by the end of the year.

 

[jb56]

And I think you would be wrong. A lot of allocation is going to ZEV states that are very well of. Avg income in CA or NY is not the same as bumfuck USA.

Bumfuck USA? You mean where everyone drives pickup trucks? I'm not talking about sales here, I'm talking about reservations. So the ZEV state thing doesn't matter.

But in any event, 13.3% of California households (not individuals, households) have income above $200k a year. Compared to 10% nationwide.

But you think most reservation holders have household incomes above $200k? It's electric, but it's still a ford pickup.

 

[p52Ranch]

I was trying to develop an evaluation of how much of the price increase could be attributed to battery costs. I was evaluating the ER Battery pack price increase to come up with the number.

The difference between the XLT ER and the Lariat ER is completely whacked. (It was wacky for 2022 but is even more wacky now).

- The XLT ER Battery Pack (no other options) was $10,000 and is now $12,500. So that is a 25% increase for the battery only.

- The XLT ER Battery plus the 511A trim package (all bundled together) was $10,000 and is now $10,850 (an 8.5% price increase for the battery plus all of the goodies you get with the 511A package) Assuming the $850 increase is all on the battery.

Using the XLT ER battery increase and allocating that out to a SR battery:
$2500 for 33KWh of battery = an increase of $75.76 per KWh. That would mean the price increase just for the SR battery would be $7,424

Using the Lariat ER battery increase and allocating that out to a SR battery:
$850 for 33KWh of battery = an increase of $25.76 per KWh. That would mean the price increase just for the SR battery would be $2,524

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