Staff Reports
Ford Motor Co. is the latest automaker to suffer a setback in the electric vehicle (EV) market. The company announced a significant reduction in production of its EV F-150 Lightning pickup truck due to a decline in demand. Originally, Ford had planned to manufacture 3,200 Lightning models per week in 2024, but that number has now been cut to just 1,600 units.
EV Agenda Suffers Crushing Blow as Ford Dramatically Slashes Electric F-150 Lightning Production
READ: https://t.co/sLWKUJ12Pr
— Allen (@miscreantmd) December 13, 2023
This sudden reversal is surprising, considering Ford’s previous statement that the F-150 Lightning would be the “test for adoption for electric vehicles” in the United States. The decision to cut production is being attributed to business considerations, as Ford is facing mounting losses on its EVs. The company stated that it will continue to align production with customer demand.
Despite the reduced production, the F-150 Lightning had its best sales month ever in November, with 4,393 new vehicles delivered to customers. However, Lightning sales did drop by 46 percent in the third quarter of the year. In contrast, Ford’s gas-powered vehicle production remains unchanged.
The production cut also means that one of Ford’s three shifts at the Lightning plant will be idled, potentially resulting in layoffs for around 700 workers. This is disappointing for the employees who were recently added to the third shift and saw the plant’s size increase by over 70 percent.
This isn’t the only pullback from Ford in the EV market. The company has also reduced its investment in EVs as a whole and has delayed its planned $12 billion investment in EV production. Furthermore, production expectations for the Mustang Mach-E model have been lowered, and the investment in a new battery plant in Kentucky has been postponed.
Regardless of these setbacks, Ford claims that EVs are still a product with growth potential. CFO John Lawler argues that the narrative that EVs aren’t growing is false. However, it is clear that the forced EV revolution advocated by President Biden and his allies is facing challenges. General Motors, for example, recently sought to preserve tax subsidies for EVs while simultaneously closing plants due to diminished customer interest in these vehicles.
The struggles in the EV market extend beyond individual automakers. Car dealers are finding it increasingly difficult to sell EVs, with reports indicating that these vehicles take significantly longer to move off the lots compared to gas-powered or hybrid cars. Furthermore, evidence suggests that EVs are less reliable than their gas-powered counterparts and may even cause more damage to roads.
Ford’s decision to reduce production of the F-150 Lightning pickup truck is indicative of the auto industry’s overestimation of EVs’ popularity and highlights the fact that most Americans are not yet ready to embrace this technology.
