In a striking turn of events, Ford Motor has announced a significant reduction in the planned production of its all-electric F-150 Lightning pickup for 2024. This decision marks a notable shift in the company’s strategy, just after a year of substantial increase in plant capacity dedicated to this electric vehicle (EV) model. The new plan reveals a cautious approach from Ford, aligning production with market demand in an evolving automotive landscape.
Ford Motor’s adjustment in the manufacturing strategy of the F-150 Lightning reflects a nuanced response to changing market dynamics. Initially projected to ramp up production to about 3,200 units weekly, the company has scaled back to an average volume of approximately 1,600 F-150 Lightnings weekly. As per an internal source, this recalibration will take effect starting January at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan.
A Ford spokeswoman reiterated the company’s adaptable approach: “We’ll continue to match production with customer demand.” This stance echoes recent remarks by Ford executives, emphasizing a tailored production strategy in line with market needs. This shift is a broader change as Ford reevaluates its $12 billion investment plans in electric vehicles.
The decision to cut production stems from a reassessment of market demand, as detailed in a memo to suppliers, first reported by Automotive News. The memo cited “changing market demand” as the primary reason for the adjustment. Despite the enthusiasm for EVs, the actual demand has been more tepid than anticipated, influenced by persistent high prices and interest rates. Automakers, including Ford, are now focusing on cost-effective production methods for EVs while rethinking their long-term production and product strategies.
Earlier this year, Ford spent six weeks enhancing the production capacity of the F-150 Lightning at the Michigan plant. The upgrade was expected to triple the plant’s initial output capability to 150,000 of these all-electric trucks. Despite this expansion, Ford’s sales figures for the F-150 Lightning have been modest. Through November, the company has sold 20,365 units, a 54% increase from the previous year, with a monthly record of approximately 4,400 sold in November.
Ford’s decision to halve the production of the F-150 Lightning for 2024 is a reflective response to the current state of the EV market. Balancing ambition with pragmatism, Ford navigates the complexities of a transitioning automotive industry. While this move may seem like a step back, it could be a strategic realignment, ensuring that Ford remains responsive and resilient in the face of fluctuating market demands and economic conditions.
