What Is Taking place? Why is Ford Reducing F-150 Lightning Manufacturing Plans In Half?

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I simply wrote about Ford’s surging EV gross sales, notably its F-150 Lightning gross sales, which have been up 113% in November in comparison with November 2022 (4,393 gross sales vs. 2,062 gross sales). Sadly, it appears the celebrations have been untimely. Whereas it looks as if the F-150 Lightning ought to be kicking the conventional F-150’s butt, demand has apparently not risen quick sufficient and Ford’s expectations for 2024 are usually not as brilliant as they as soon as have been.

To start with, it ought to be famous that Ford F-150 Lightning gross sales are nonetheless anticipated to be increased subsequent yr than this yr. Gross sales within the first three quarters of this yr have come to 12,260. The plan for F-150 Lightning manufacturing was 150,000 autos a yr. There’s a giant hole between 15,000 or so and 150,000 — the latter is 10 occasions extra. Even in the event you multiplied that prime November whole by 12, you’re barely above 50,000 items. So, it’s pure — reduce manufacturing till demand will get to the specified stage, the extent the manufacturing line was constructed for.

However the large query is — what’s happening? Why is demand far beneath what was hoped? For one, we’ve received the notorious challenge of excessive rates of interest. Perhaps these will come down in 2024. Till they do, although, you’ll be able to’t rely on it. There’s additionally the difficulty of shoppers being a bit stretched financially, and rising bank card debt consuming into folks’s funds. For a lot of, it’s simply not a very good time to go in on an enormous buy and new financing/debt line.

Except for these broader financial points, there’s the matter of the truck market and the way aggressive the Lightning is in that market. Apparently, not sufficient F-150 consumers are prepared but to go electrical. 1000’s a month are, however many extra are usually not. Virtually 50,000 non-electric F-Sequence vehicles have been bought in November (in comparison with these 4,393 Lightnings). After which there are all of these different truck manufacturers (which haven’t even been promoting electrical vehicles but). Evaluating to the electrical startup OEM choices, Rivian is doing properly providing a little bit of a extra premium and quirky choice, after which there’s the Cybertruck that has been looming within the shadows. Now that it’s lastly out for actual and we all know pricing and vary, maybe it’ll loom much less over the remainder of the market. Or maybe extra folks will watch for it? We don’t know. Nevertheless, with the Cybertruck coming in far more costly than initially introduced (4 years in the past in late 2019), and likewise with much less vary, these at Ford and followers of Ford can maybe maintain slightly optimism that 2024 will probably be a brighter, extra electrifying yr for the Lightning.

I’ve to be trustworthy and say that I anticipated demand for the F-150 Lightning to be a lot increased, even considerably increased than 150,000 items a yr, and I wrote about that. So, I’m struggling to grasp why the Lightning isn’t promoting higher in opposition to its fossil-powered siblings. Vary limitations and upfront value will be the greatest obstacles — mixed with every thing above — however each of these issues will enhance in coming years. And, hey, some are simply late bloomers.