Ford CEO Reveals New Strategy After $70K EV Pickup Struggles to Sell
Ford Motor Company has officially discontinued production of the all-electric F-150 Lightning pickup. This decision stems from a reevaluation of the company’s electric vehicle strategy amid disappointing sales in the higher-end electric truck segment.
Reasons Behind Ford’s Strategic Shift
On the evening of the announcement, Ford CEO Jim Farley highlighted that the $70,000 F-150 Lightning simply did not meet market demand. He noted that promoting high-end electric vehicles—priced at $50,000 and above—was proving ineffective.
Ford’s decision aligns with its broader Ford+ plan, aimed at enhancing profitability and fostering growth through software integration and connected experiences.
- F-150 Lightning production ended at the Rouge EV Center in Dearborn, Michigan.
- Shift focuses on smaller, more affordable electric vehicles (EVs).
- Plans for a three-row electric SUV were scrapped last year.
Financial Implications and Future Plans
To facilitate this shift, Ford anticipates incurring approximately $19.5 billion in restructuring charges. However, the company expects its Model e division—responsible for its EVs—to achieve profitability by 2029. Farley indicated a transformative path toward profitability that became clear only recently.
Looking ahead, Ford forecasts that by 2030, hybrids, extended-range electric vehicles (EREVs), and EVs will account for 50% of its global sales, a significant increase from the current 17%.
Upcoming Electric Vehicle Innovations
Ford plans to enhance its hybrid vehicle offerings, with Farley claiming that EREVs present a superior solution. The next-gen EREV pickup is expected to deliver impressive performance, boasting:
- 700 miles on a tank of gas for 90% of its operating time
- All-electric functionality
- A 0 to 60 mph acceleration time of just 5 seconds
Additionally, Ford aims to launch a series of budget-friendly EVs starting around $30,000. The first of these models will be a mid-sized pickup, resembling the Ranger or Maverick, scheduled for assembly at the Louisville Assembly Plant beginning in 2027.
Sales Performance Overview
Despite the F-150 Lightning’s discontinuation, it was the best-selling electric pickup in the U.S. through the third quarter, even though sales saw a 72% drop last month coinciding with the expiration of the $7,500 EV tax credit.
In fiscal terms, Ford’s Model e division reported a loss of $1.4 billion in the third quarter, contributing to a staggering total loss of $3.6 billion for the first nine months of 2023, compared to a loss of $5.1 billion in the previous year.
These shifts signify Ford’s commitment to adapting to consumer needs while navigating the evolving landscape of the electric vehicle market.
