Ford Resumes F-150 Lightning Production After Price Cuts Drive Surge in Demand

Ford has announced the resumption of production for its F-150 Lightning electric pickup truck after a six-week factory shutdown. The closure was aimed at tripling production capacity. The decision to restart production comes just two weeks after Ford reduced the prices of all versions of the F-150 Lightning, leading to speculation that demand had decreased. However, Ford officials have stated that they are now receiving six times more orders than before the price cuts, and the company has a significant order backlog that can fill 45 days of production at the reworked Rouge Electric Vehicle Center. While the exact number of orders was not disclosed, sales of the Lightning in the second quarter of the year were more than double compared to the same period last year, though only up 4% from the first quarter. The increased production capacity at the Rouge Electric Vehicle Center, which now employs around 2,000 workers, will enable the manufacturing of electric trucks at a rate of 150,000 per year starting in the fall. Ford reduced the prices of its electric trucks in anticipation of increased factory output, cost reductions for battery raw materials, and internal efforts to scale production. The price cuts, some as high as $10,000, were seen on Wall Street as potential evidence of an upcoming price war among electric vehicle manufacturers. Ford faces rising competition from other automakers entering the full-size electric pickup truck market, including Rivian, Chevrolet, and Stellantis. Ford had previously predicted that its pre-tax losses related to electric vehicles would reach $4.5 billion this year, up from the previous estimate of $3 billion. The resumption of production and surge in demand for the F-150 Lightning is an encouraging sign for Ford as it continues to navigate the competitive landscape of the electric vehicle market.