Ford Halts F150 Lightning Production Amid Losses and Waning EV Demand

Ford Motor Co. is significantly altering its electric vehicle strategy. The shift comes amid financial struggles and decreasing consumer interest in electric vehicles (EVs). The company announced it will cease production of the F-150 Lightning electric pickup truck.

Financial Turmoil and Shift in Focus

Ford has experienced substantial losses in its EV sector, totaling approximately US$13 billion since 2023. The company anticipates an additional US$19.5 billion impact primarily in the fourth quarter, largely driven by the electric vehicle business.

Strategic Production Changes

• The company will convert the Tennessee Electric Vehicle Center into the Tennessee Truck Plant, focusing on gas-powered trucks.
• Ford’s Ohio Assembly Plant will now produce a new gas and hybrid van.

CEO Jim Farley emphasized a need for a more resilient and profitable Ford, stating, “The operating reality has changed.” The company aims to redirect investments into higher-return opportunities, including its battery energy storage business and market-leading trucks and vans.

EV Market Trends

Ford forecasts that by 2030, half of its global vehicle sales will consist of hybrids, extended-range EVs, and full electric vehicles. This marks a substantial increase from the 17% anticipated for this year.

Industry experts, like Sam Fiorani from AutoForecast Solutions, noted that the decision to end the electric F-150 Lightning was not surprising. The truck struggled to utilize the plant’s capacity effectively, making the pivot to a modified gas-powered version sensible.

Consumer Demand and Legislative Influence

U.S. EV sales accounted for roughly 8% of new vehicle transactions last year. Yet, hurdles like high costs and inadequate charging infrastructure hinder broader acceptance. The average price of a new EV was US$58,638, significantly higher than the US$49,814 average for new vehicles overall.

Recent policy shifts under the Trump administration have also contributed to changes in the auto industry. This administration has rolled back incentives and weakened regulations that support EV adoption, contrasting sharply with the previous administration’s policies aiming for 50% of new sales to be electric by 2030.

The evolving landscape of EV demand and production strategies reflects a complex interplay between consumer preferences and regulatory environments. As Ford and other automakers navigate these challenges, the future of electric vehicles continues to hold promise, albeit on a longer timeline than initially expected.