Ford workers build the electric F-150 Lightning pickup truck at the automaker’s Ford Rouge Electric Vehicle Center on December 13, 2022.
Mike Welland | CNBC
Detroit- Ford Motor Company It plans to halt production of the all-electric F-150 Lightning from mid-November to early next year to address overstocking and narrow pickup truck losses.
The automaker confirmed Thursday that its Rouge electric vehicle center in suburban Detroit will be closed for seven weeks from Nov. 18 to Jan. 6, including a previously planned end-of-year holiday shutdown.
“We will continue to adjust production to achieve the best combination of sales growth and profitability,” Ford said in an emailed statement.
The canceled production, first reported by automotive newsSales of all-electric vehicles are not growing as fast as many expected due to rising costs and consumer reluctance to adopt them.
Sales of the F-150 Lightning are up 86% this year, but the company is losing money on the car and has been subsidizing sales. This includes reported programs Dealers can receive up to $1,500 in rebates on every 2024 F-150 Lightning they order from one of the automaker’s new regional electric vehicle distribution centers.
Ford said on Monday that its Model e electric vehicle business expects to lose about $5 billion this year.
Ford executives say the automaker’s next generation of electric vehicles will cost less than the current generation and won’t be launched unless it can become profitable within a year.
The production slowdown means the F-150 Lightning is falling out of favor. Ford CEO Jim Farley and other top executives have touted the vehicle as being as important as the Model T, but the company has cut planned pickup production in half starting this year.
According to Cox Automotive, Ford’s total number of days of new vehicle supply was 112 days as of the end of September. The F-150 (both electric and conventional) has been in service for 100 days. Cox reports that Ford’s other electric models – the Mustang Mach-E crossover and E-Transit van – have even higher lifespans, at 128 days and 112 days respectively.
Ford’s target supply period is 50 to 60 days.
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