Ford Motor Co. plans to cut production of its electric F-50 Lightning pickup trucks by about half in 2024 amid changing market demand, reports said citing a company email.
The news comes as demand for electric vehicles is said to be slower than expected reflecting higher prices and interest rates. However, Ford recently had recorded 113 percent rise in sales of electric F-150 Lightning in the month of November, and a 53.6 percent rise in the year-to-date period.
The automaker, which significantly increased plant capacity for EVs in 2023, plans to trim Lightning production to about 1,600 on average a week at its Rouge Electric Vehicle Center in Dearborn, Michigan, starting in January. The firm’s recent plan was to produce 3,300 units on average a week.
A Ford spokesperson reportedly said the company would continue to match Lightning production to customer demand.
The company in August had reopened the Rouge facility after it was shutdown for six weeks for expansion with a view to triple its manufacturing capacity to 150,000 vehicles a year.
While reporting third-quarter results in late October, Ford had said that many North American customers interested in buying EVs are unwilling to pay premiums for them over gas or hybrid vehicles, sharply compressing EV prices and profitability. The EV segment had recorded an EBIT loss of $1.3 billion, attributable to continued investment in next-generation EVs and challenging market dynamics.
In July, Ford trimmed prices for the electric F-150 by as much as 17 percent with a view to gain market share.
In late November, Ford reportedly scaled back plans for a $3.5 billion battery plant in Michigan citing consumers’ slower than expected shift to electric vehicles, increase in labor costs and the company’s efforts to trim costs. Ford also said then that it was cutting production capacity by roughly 43 percent.
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