Ford has made substantial investments in electric vehicle (EV) production to address the increasing demand for fuel-free cars. However, the company has recently announced production cuts for EVs, raising questions about the impact on the Ford F-150 Lightning. What implications does this news have for the model, and what can Ford drivers anticipate as the landscape of EV demand undergoes a shift in the future?
Ford Makes EV Production Cuts
Last fall, Ford disclosed its intention to lay off 700 employees at the Rouge Electric Vehicle Center in Dearborn, Michigan. Ford explained the decision by citing various constraints, such as challenges in the supply chain and the need to navigate the processing and delivery of vehicles held for quality checks after resuming production in August, as stated in their announcement last October.
The news signals a notable shift in the auto industry, particularly given the historical challenges faced by electric pickup trucks in the American market.
How Production Cuts Will Impact the Ford F-150 Lightning
The reductions will have a substantial impact on the production of the Ford F-150 Lightning in 2024 and beyond, as Ford and other manufacturers realign their EV objectives for this decade. Anticipated outcomes from Ford’s production cuts include:
Fewer F-150 Lightnings
In 2022, Ford CEO Jim Farley had outlined plans to manufacture 150,000 F-150 Lightnings annually to satisfy the growing demand. However, due to the F-150 Lightning’s sales performance, Ford has decided to halve the production for the 2024 manufacturing year, as communicated in a memo sent to suppliers.
Consequently, there will be a reduced number of Ford electric trucks on the streets and available in dealerships this year. The announcement has caught many in the automotive industry off guard, given the notable accomplishments of the vehicle. For instance, the Ford F-150 Lightning’s recognition as the NACTOY Truck of the Year in 2023 highlighted its early success.
The production cuts are anticipated to have an impact on the prices of the F-150 Lightning, as Ford adjusts its strategy for its inaugural electric truck. Elevated prices have contributed to declining demand, particularly with the notable $6,000-$8,000 price increase for the 2023 models.
Price adjustments are expected once more for certain 2024 Ford Lightning F-150 trims, with reductions in some and increases in others. Notably, the platinum and platinum black trims will experience a $5,000 reduction in their price tags, whereas certain other trims may witness a price hike of up to $10,000.
Since October of last year, car buyers have been capitalizing on rebates available with the 2023 F-150 Lightning. Notably, the platinum and lariat trims come with $7,500 in incentives, contributing to enhanced affordability. When coupled with the federal tax credit on electric vehicles, consumers have the potential to save approximately $15,000 in total.
The Future of American EV Demand
Although Ford’s production cuts are substantial, the company is not alone in facing adjustments. General Motors (GM) has also announced delays in the production of the Chevrolet Silverado EV and the GMC Sierra Denali EV. These reductions in electric vehicle production collectively signify a shift in pace amidst the ongoing electric boom within the auto industry.