Ford Halts Production of Money-Losing F-150 Lightning

Ford Motor Company announced on December 15 that it has ceased production of the all-electric F-150 Lightning, its flagship full-size electric pickup, citing customer demand and the reality that the vehicle was a money-loser. The decision marks a significant shift in the company's electric vehicle strategy, with Ford instead focusing on hybrid vehicles and a future line of smaller, cheaper EVs. According to Andrew Frick, the president of Ford Blue and Ford model e, the company's commercial and electric divisions, the move is a response to customer preferences. "The American consumer is speaking clearly and they want the benefits of electrification like instant torque and mobile power," Frick said. However, he acknowledged that the F-150 Lightning was not the right vehicle for the market, given its high price point and limited range. Ford had invested heavily in the F-150 Lightning, with a production cost of around $70,000 per vehicle. Despite this, the company was only able to sell the vehicle at a price of around $55,000, resulting in a significant loss per unit. The company's decision to cease production of the F-150 Lightning is expected to result in a one-time charge of around $1.5 billion to its bottom line. The move is also expected to have a significant impact on Ford's battery production plans. The company had planned to use its battery plants to supply the F-150 Lightning, but will now instead send the batteries to bolster the electric grid. This decision is seen as a strategic move by the company to address the growing demand for renewable energy. The F-150 Lightning was launched in 2022 as a flagship electric vehicle for Ford, with a range of up to 300 miles on a single charge. Despite its high price point and limited range, the vehicle was seen as a key player in the electric vehicle market, with many analysts expecting it to be a major seller. However, sales of the vehicle were slower than expected, with the company selling around 60,000 units in the first year of production. Ford's decision to cease production of the F-150 Lightning marks a significant shift in the company's electric vehicle strategy. The company is now focusing on hybrid vehicles and a future line of smaller, cheaper EVs, which are expected to be more competitive in the market. The company's next major electric vehicle launch is expected to be a compact crossover, which is expected to be priced around $30,000. The move is also seen as a response to the changing market dynamics in the electric vehicle space. With many competitors entering the market, Ford is looking to differentiate itself with more affordable and practical electric vehicles. The company's decision to focus on hybrid vehicles and smaller EVs is seen as a strategic move to address the growing demand for electrification in the market. As the electric vehicle market continues to evolve, Ford's decision to cease production of the F-150 Lightning marks a significant turning point for the company. The move is expected to have a significant impact on the company's bottom line, but is also seen as a strategic move to address the growing demand for electrification in the market.