Ford cancels fully-electric F-150 Lightning production due to increasing losses and declining demand for electric vehicles.

Ford Motor Company has announced a significant shift in its electric vehicle (EV) strategy, signaling a departure from its aggressive plans to dominate the electric market. This decision comes amid reported financial losses and decreasing consumer enthusiasm for fully electric vehicles. As part of this new approach, Ford will focus more on hybrid technologies and efficient gasoline engines.

The automaker, which has invested billions into its electric vehicle initiatives, will discontinue the manufacturing of the F-150 Lightning electric pickup truck and instead introduce an extended-range version of this vehicle. This pivot reflects a broader shift in Ford’s operational strategy, with a name change to the Tennessee Electric Vehicle Center, traditionally viewed as the hub for Ford’s EV and battery production. The facility will now be known as the Tennessee Truck Plant, dedicated to producing new, cost-effective gasoline-powered trucks. Additionally, Ford’s Ohio Assembly Plant will be repurposed to manufacture a new gas and hybrid van.

Financial challenges have been notable for Ford, with the company reporting a staggering billion loss in its EV segment since 2023. Projections indicate that an additional .5 billion charge will be incurred primarily in the fourth quarter due to the ongoing struggles within the electric vehicle sector. CEO Jim Farley emphasized that this pivot represents a customer-driven adjustment aimed at creating a more resilient and profitable business model. Ford now anticipates that by 2030, half of its global production will include hybrids and extended-range EVs alongside traditional combustion vehicles.

The decision to discontinue the F-150 Lightning comes as no surprise; the vehicle has reportedly failed to meet the capacity expectations of the production plant. Industry analysts assert that Ford’s move to modify existing gasoline-powered models for electric capabilities has yielded cost advantages, marking it as a practical decision.

Amidst these recalibrations, Ford is not alone; other automotive manufacturers have similarly adjusted their EV strategies, influenced by consumer demand in the United States falling short of initial projections. In 2022, electric vehicles made up approximately 8% of total new vehicle sales, with persistent issues such as high costs and inadequate charging infrastructure deterring potential buyers. Recent data from Kelley Blue Book revealed that the average transaction price for new electric vehicles has risen to ,638, compared to ,814 for all new vehicles.

Improved public charging availability is acknowledged, yet the reliance on home-based charging remains a critical barrier for many prospective buyers without access to residential charging solutions. The changing political landscape around EV policies further complicates the situation. The current administration has shifted focus from the pro-EV stance previously seen, undermining certain tax incentives and emissions regulations established under earlier policies.

In summary, while electric vehicles are acknowledged as a crucial part of the automotive industry’s future, the transition is proving more complex and gradual than initially anticipated. Ford’s recent developments may signal a broader trend across the industry as manufacturers reassess their electric ambitions in response to capital allocation, market feasibility, and shifting consumer preferences.

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