Ford’s electric F-150 Lightning production cut deals a major blow to the EV agenda
Ford Slashes Electric F-150 Lightning Production, Dealing a Crushing Blow to the EV Agenda
Ford Motor Co. has made a surprising move by significantly reducing production of its highly anticipated EV F-150 Lightning pickup truck. The decision comes as demand for the vehicles has plummeted, forcing the automaker to dial back on its commitment to the electric vehicle agenda.
Earlier this year, Ford had announced ambitious plans to manufacture 3,200 Lightning models per week by 2024. However, the company has now revised its order to only 1,600 units, according to Bloomberg.
This unexpected pullback marks a significant turnaround for Ford, which had previously touted the F-150 Lightning as the “test for adoption for electric vehicles” in the U.S.A.
While Ford attributes the production cut to a business decision driven by mounting losses on EVs, it is worth noting that the Lightning had its best sales month ever in November, with 4,393 new vehicles delivered to customers. However, Lightning sales did experience a 46% decline in the third quarter.
Interestingly, Ford’s gas-powered vehicle production remains unaffected, as reported by Automotive News.
Implications for Workers and EV Industry
The decision to cut production of the Lightning will result in the idling of one of Ford’s three shifts at its Lightning plant, potentially leading to layoffs for around 700 workers. This move is particularly disappointing for employees who were recently added to the third shift after the plant was expanded by over 70%, according to Automotive News.
Notably, Ford is not the only company scaling back its investment in EVs. General Motors, among others, has also reduced its commitment to EV production and delayed a planned $12 billion investment in the sector.
In addition to the Lightning, Ford is also revising production expectations for its Mustang Mach-E model and delaying its investment in a new battery plant in Kentucky.
The EV Narrative and Challenges Ahead
Despite these setbacks, Ford maintains that EVs are still a growth product. CFO John Lawler asserts that while the industry’s growth rate may be slower than expected, EVs are indeed gaining traction.
However, the forced EV revolution is not progressing as quickly as President Joe Biden and his climate change advocates would like. Biden continues to explore ways to incentivize companies like Ford to prioritize EV manufacturing through tax subsidies.
Yet, the automotive industry is facing challenges in promoting EVs. General Motors recently sought to retain tax credits for EVs while announcing plant closures due to waning customer interest. Car manufacturers are also resorting to price cuts and attractive lease options to stimulate EV sales.
Furthermore, EVs are taking longer to sell compared to gas-powered and hybrid vehicles, resulting in unsold inventory and financial burdens for car dealers, as reported by the Wall Street Journal.
As evidence mounts against EVs being the panacea they were touted to be, with reports of lower reliability and even causing more potholes, Ford’s production cut serves as further proof that the industry may have overestimated the demand for electric vehicles. It appears that most Americans are not yet ready to embrace EV ownership.
Read more: EV Agenda Suffers Crushing Blow as Ford Dramatically Slashes Electric F-150 Lightning Production
Source: The Western Journal
How does Ford’s decision to reduce production of the F-150 Lightning affect the trajectory of the EV industry?
Other electric vehicles, such as the Mustang Mach-E and the E-Transit van. While the company continues to emphasize its commitment to electric vehicles, the reduction in production raises questions about the overall trajectory of the EV industry.
This cutback in production is undoubtedly a blow to the EV agenda. The F-150 Lightning was highly anticipated as it represented an important step in the electrification of the popular pickup truck segment. With its impressive range and towing capabilities, the Lightning was expected to appeal to a wide range of customers and help accelerate the adoption of electric vehicles in the United States. However, Ford’s decision to reduce production suggests that the demand for electric pickup trucks may not be as strong as initially anticipated.
The implications of this decision extend beyond Ford and its employees. The EV industry as a whole may feel the effects of this setback. As major automakers like Ford and General Motors scale back their investment in electric vehicles, it sends a signal to investors and consumers that the transition to electric vehicles may not be as imminent as previously thought. This could potentially slow down the development of charging infrastructure, hinder the growth of the electric vehicle market, and dampen consumer confidence in EVs.
On the positive side, Ford’s gas-powered vehicle production remains unaffected, indicating that there is still a strong market demand for traditional internal combustion engine vehicles. This highlights the ongoing challenge of convincing consumers to make the switch to electric vehicles, even with the availability of compelling options like the F-150 Lightning.
It is important to note that Ford’s decision to reduce production may not be entirely indicative of the overall state of the EV industry. There are various factors that could have contributed to this decision, including supply chain constraints and global chip shortages. However, it does raise questions about the broader market demand for electric vehicles and the pace of their adoption.
In conclusion, Ford’s decision to slash production of the F-150 Lightning is a significant setback for the EV agenda. It not only impacts Ford employees but also raises concerns about the future of the EV industry as a whole. As major automakers reevaluate their electric vehicle strategies, it is clear that the path to widespread adoption of electric vehicles may be more challenging than originally anticipated. The industry will need to address these challenges and find ways to overcome them in order to achieve the long-term sustainability and environmental benefits promised by electric vehicles.
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