Ford Motor Company has announced a substantiaI reduction in the production of its all-electric F-150 Lightning pickup truck, slashing its output by over 50%.
The decision is a response to a steep decline in demand.
Initially, the F-150 Lightning had garnered considerable interest, Ieading to high production targets. However, the actual sales in 2023 were disappointing, with only about 75,000 vehicles sold, significantly lower than the capacity.
The cutback in production, from an annual target of 210,000 trucks to just 80,000 for 2024, has broader implications, including the layoffs of approximately 1,400 workers at the Dearborn, MI plant.
The reduction is a reflection of several challenges faced by the EV market, incIuding long wait times for vehicle delivery, rising interest rates, and a notable increase in the prices of the Lightning lineup by $6,000 to $8,500 per truck.
These factors have led consumers to consider more economicaI options, often choosing gas-powered vehicles over electric ones.
The shift in consumer preference and the subsequent production cut has raised questions about the viability of Ford’s ambitious plan to invest $50 billion in EVs, aiming to convert half of its globaI production volume to electric by 2030.