Less than a year after Ford announced it would increase production of the all-electric F-150 Lightning, the motor company has reportedly decided to cut that projected boost in half beginning in 2024.
Earlier this year, Ford planned to produce around 3,200 F-150 Lightinings per week at its Rouge Electric Vehicle Center in Dearborn, Michigan, which assembles all of the electric pickup trucks produced by Ford. Beginning in January, however, Ford will drop its production of the F-150 Lightning down to 1,600 per week, CNBC reported, citing a source familiar with the decision.
A memo sent to suppliers and obtained by Automotive News said the EV production cuts are due to “changing market demand.” A Ford spokesman simply told CNBC that the company would “continue to match production with customer demand.”
The reported cuts come in the wake of Ford slashing $12 billion in EV investments as the motor company struggles to sell its all-electric vehicles to consumers who still appear to have concerns about transitioning from gas to electric, especially as retail prices for most EVs remain high.
So far, Ford has sold more than 20,000 F-150 Lightnings this year, up 54% from last year, according to CNBC. The increase in sales was bolstered by the motor company’s decision to slash the F-150 Lightning’s price by $10,000 over the summer, meaning the most affordable version of the truck is now $50,000. Meanwhile, drivers can purchase a gas-powered F-150 SuperCrew for around $40,000.
Ford’s planned cuts to EV production also come on the tail end of a $9.2 billion loan from the Biden administration intended to help construct three electric vehicle battery plants as the federal government under Biden continues to push American companies and consumers toward electric alternatives in the name of fighting climate change.
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Ford has projected it will lose $4.5 billion on EVs this year, and the motor company said it lost around $32,000 for every EV it sold during the second quarter of 2023. Ford is also delaying production at a battery plant in Kentucky and significantly reduced its commitment to a battery plant in Michigan, cutting 800 jobs and more than $1 billion.