Ford Reduces F-150 Lightning Production to Match Customer Demand

[davehu]

You have to remember that Ford sold 51% more in 2023 from 2022. 15k to 24k. Granted 2022 was only for 7 months. The official plan up to Dec 12 was for 150,000 in 2024. Thank abou that. A 500% increase from 2023 to 2024. That wasn't remotely possible. Ford's probably known since at least mid-summer they were never going to make that and in fact I think they've always known it. The "reaching 150k run rate" gave way to the 159k forecast for 2024. In any case the new forecast is still for a 50%-60% increase from last year.

Demand is still strong but media (including Ford Authority) are too lazy to analyze and report the facts.

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[F-150Evolved]

I’m sure Ford analysts know the fiscal relationship between sales volume and unit pricing. The more you make, the cheaper the per unit production cost.

With $ mind, this is Ford sending a loud message to preserve the status quo of high pricing of EVs due to high transition cost, limited scalability in EV production, and hesitation by potential buyers from unanswered questions about battery service life, replacement cost, and recycling.

Why would Ford lower the price per unit to increase EV sales numbers. In comparison, Tesla has lowered the price per unit and will continue to do because Tesla wants to grow.

Ford does not benefit from scaling production to meet a higher EV market demand from lowering EV pricing while still maintaining the lush profit margins they’re used to from ICE vehicles in the past. The transition from making ICE vehicles costs way too much and market uptake is too slow.
Make EV’s cheap and people will buy them.

 

[COrocket]

Don’t worry everyone, these cuts will most likely be temporary. Go get a truck while you can or wait until we make another revolution around the @Ford Motor Company wheel of EV insanity

 

[bmwhitetx]

Just saw a new F-150 commercial during the game. They tout 3 versions of the F-150 with these features:
3.5L EcoBoost V6 - best in class towing ("getting heavy things where they need to go")
PowerBoost Hybrid - 7.2 kW ProPower ("powering things on the go")
Lightning - "going from 0-60 in under 4 seconds"

That will sell them....

 

[TexasEdition]

Seeding the market with Pros is important.

Plumbers and electricians will experience the best of EV life running around town while not doing road trips. They will "get it" and start spreading the word. "I can't believe how fast my new work truck is!!! Don't tell my boss." Fleet managers will run the numbers and spread the word.

The Pro is actually the halo model.

 

[TexasEdition]

And another thing: The solar market in CA has a huge potential market for using Lightnings as battery backups. But not using the Ford system.

Charge during the day using excess solar production. Use at home at night instead of paying PG&E. The way to do this is not with the Ford system, but via a generator circuit feeding into existing backup interfaces made by SolarEdge and other solar mainstream manufacturers. Use the 240v feed from the bed.

My SolarEdge backup interface already accepts that circuit. It needs a firmware update to turn on that feature.

 

[Basalt]

Ford is a public company owned by shareholders. At the annual meeting, the losses from EV production were on full display. Meanwhile, Ford still must believe the future is with EVs. Why else would they invest $5.6 billion in "Blue Oval City?" Too, this is an election year. A change in philosophy could remove all incentives for EVs and even penalize their use. Bigger companies do not like to bet the farm -- I think that explains Ford's actions and cautions.

 

[PreservedSwine]

Ford is very concerned about margins, and rightly so. It appears there simply isn’t any money in the Pro for Ford.
This will have a positive impact for current owners, as the market isn’t going to be flooded with discounted Lightning’s. The people who want the lightning and can afford it will buy one.
This will help stabilize the used market as well, and current owners won’t take suck a large hit if they decide to get out.

 

[Newton]

Sort of a side topic, but I was able to use the F150 as a home generator by adding a Generac transfer panel that switches both hots and neutrals. It was a couple of days worth of work but not very expensive. It is arguably a bit better than my old system because when I need to run the house it only powers the circuits that we need so I won't accidently drain the battery heating the garage studio that I won't be in,

 

[ctuan13]

i don’t see it that way, there’s really not much margin in the Pro trim, so they don’t want to make or sell them. The “lose money on every deal, but make it up on volume“ business model isn’t the most sustainable…

It's not so much about "lose money on each deal, but make it up on volume", but more "eat the losses now, to gain market prominence and rake in massive profits once next gen/more advanced battery tech becomes available."

Margins and profits won't matter if they lose the incredible market share the gas F150, when it comes to EVs. To me, it seems incredibly short-sighted to not swallow the increases loss on each unit now, to guarantee capturing the market for later success.

Ford already said they're losing tens of thousands on each Lightning. What's a little more on each to sell boatloads of Pros to establish absolute market dominance?

 

[TexasEdition]

We want the Frunk, gotta have the Frunk!

Another great feature of the Lightning that needs to be pushed like crazy. Get George Clinton and Funkadelic on this assignment.

Frunk Theme Song

 

[Need_A_Lightning]

I think that part of the issue is dealers’ “take it or leave it” attitude.

I’m in the market for a Lariat, would love to see some type of direct to consumer model from Ford. I’m fairly new to this forum — is Ford Motor Co on this forum?

 

[TaxmanHog]

I’m fairly new to this forum — is Ford Motor Co on this forum?

They monitor traffic and offer assistance to a limited degree @Ford Motor Company

 

[TaxmanHog]

Why not just pull the easy levers to increase demand like eliminating MAAP? Ford's EV strategy continues to make no sense to me.

??? what does this refer to , links???

https://www.carsdirect.com/deals-ar...-150-lightning-dealers-list-prices-under-msrp

https://fordauthority.com/2024/01/ford-ev-invoice-pricing-change-will-be-introduced-next-month/

 

[TaxmanHog]

https://fordauthority.com/2024/01/nationwide-ford-f-150-lightning-inventory-remains-high/

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