Automaker Ford Motor will slash production of its all-electric F-150 Lightning pickup truck in half next year, CNBC reported late Monday citing a memo obtained by Automotive News. Ford stock ticked slightly Tuesday.
Under the new production plans, Ford expects to manufacture 1,600 F-150 Lightning trucks per week at its Rogue Electric Vehicle Center in Dearborn, Mich. The cuts halve Ford's prior plans to produce an average 3,200 of the F-150 EVs per week.
Ford cited "changing market demand" as the reason for the cuts in a memo obtained by Automotive News. Meanwhile, a Ford spokesperson told CNBC that the company will "continue to match production with customer demand."
It's a major reversal for Ford. Earlier this year, the auto leader said it would increase production of its key electric vehicles, as well as popular hybrid and gas cars to "meet strong customer demand." The EV ramp-up included the F-150 Lightning truck, the E-Transit van and the Mustang Mach-E crossover, a Tesla Model Y rival.
In July, Ford cut the pricing of the F-150 Lightning by $6,000 to $10,000, depending on the model, citing improved capacity and lower battery costs.
Dynamic EV Demand
However, Ford announced plans to slow EV investments during its Q3 earnings call in late October as electric vehicle demand growth was slower than expected. The company delayed about $12 billion in spending on manufacturing capacity for EVs as well as a second battery plant at a new campus in Kentucky.
"Given the dynamic EV environment, we are being judicious about our production and adjusting future capacity to better match market demand," CFO John Lawler said in the call. The spending cuts did not include future generation EV models.
The company withdrew its full-year guidance during the Q3 results as it worked to reach a deal with the United Auto Workers union following the strike.
During the quarter, Ford touted its "best ever sales" for electric vehicles, including 20,962 battery-electric vehicles (BEVs) and 34,861 hybrid-electric vehicles.
Ford's BEV sales jumped 15% year over year and were also up quarter over quarter. The gains were driven by the E-Transit van and the Mustang Mach-E SUV, for which Ford reported the highest sales since its debut in 2021. However, sales of the F-150 Lightning fell nearly 46% for the quarter to 3,503 pickups.
For the month of November, the automaker reported a 43.2% year-over-year increase in EV sales and a 75.2% jump in hybrid vehicle sales. F-150 Lightning sales leapt 113% to 4,393 pickups for the month.
Ford Stock
Ford stock rose 0.8% Tuesday. Shares climbed back above their 50-day moving average on Friday, after regaining short-term support above the 21-day line at the beginning of December.
F stock is down 4.8% in 2023 through Tuesday's close.
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