Ford has announced that it will shut down two production shifts in April at Dearborn, Michigan. The factory manufactures the F-150 Lighting electric pickup, which is the signature electric vehicle of the company. They decided based on the customer’s demand for the F-150 Lightning electric vehicle.
Furthermore, General Motors also made a similar announcement recently about its Chevrolet Silverado electric vehicle. Although the sales of electric cars boosted in 2023, the growth was slower than many industry professionals had anticipated. This resulted in the plant shutdown of several companies, particularly Ford. This article will answer your question, ‘Did Ford stop making electric cars?’.
Why did Ford Stop Making Electric Cars?
The question ‘Did Ford stop making electric cars?’ is common. It is because Ford announced the shutdown of its main car manufacturing plants. Further, we will discuss why it did so. The sales for lightning were 24,000. It is still a small fraction of overall sales of Ford F-series pickup. The F-series is the best-selling product line of Ford. Plus, it has been the best-selling car of any type in the USA for almost 50 years. Ford sold more than 740,000 F-series trucks last year. The starting price for lightning is around $50,000. It is eligible for $7,500 in federal electric vehicle tax credits. Even after adding the tax credit, the cost of this vehicle is higher than the $34,000 base price of gas trucks. Multiple times, Ford has increased and decreased the price of this vehicle.
After the production and pricing details, let us ask, ‘Why did Ford stop making electric cars?’. All 2024 lightning models have been stopped due to an undisclosed quality problem. It is heard that due to the quality problem, Ford’s production of electric vehicles is again slow. Since February 9, the company stopped production of its F-150 lightning electric pickups. Also, Ford is holding them for quality checks. The undisclosed quality issue happened a few weeks after the battery-powered model was stopped due to decreased sales.
Effects of Pant Shutdown
When Ford stops EV production, around 1,400 employees will get free form the Rouge Electric Vehicle Centre, where lightning is manufactured. However, half of these workers will be shifted to the nearby Michigan Assembly Plant. The production of the gasoline-powered Ford Ranger and Bronco models will increase in this plant.
Besides, after the Ford Dearborn plant shutdown, other leftover employees will be moved to different jobs within the Range complex. This complex includes a company that built gas-powered F-150 trucks.
Ford Stops F-150 Electric Pickup Shipments
As we said earlier, ford electric vehicles, particularly lighting models of 2024, have been stopped due to untold quality problems. Meanwhile, the shipments of the combustion engine F-150 electric pickups began again last week after the piling up of hundreds of trucks in Detroit lots. Although deliveries of these vehicles are still expected in Ford’s ‘early 2024’ window, numerous trucks have been piling up on lots since December. As per the statement of one of the business customers, their order for around 100 trucks has already been delayed by eight weeks.
Moreover, to check the quality, the American automaker stated that they have stopped shipping electric pickups. However, they must still specify when to start delivering lightning units again. They have announced that they have begun delivering conventional gas-powered vehicle prototypes. These gas-powered vehicles were upgraded for the 2024 model year.
The Most Famous Pickup Truck in the USA
Ford’s decision to electrify the F-150 was not hard for the company. It is the most famous pickup truck in the USA. The battery-electric model performs better than diesel or gasoline-powered vehicles with independent rear suspension. Also, it has a large trunk that gives lockable and secure storage, and the power of 9.6kW of onboard AC power.
At first, the demand was strong particularly when Ford introduced a model of the lightning for only under $40,000. However, the prices of trucks continuously increased. Hence, in the middle of 2023, a base model F-150 lightning for non-fleet consumers reached a price under $60,000 without options. It is one of the reasons Ford lightning stop production.
Dealerships stock up piles of fully loaded and pricey lighting electric pickups. Many of these had thousands of dollars in leadership markups. This situation worsened the issue. Currently, there are 124 days of inventory available for the lighting. Though, according to analysts, 60 days is optimal. Although there have been multiple price reductions, the lighting electric pickup truck is still way more costly than at launch. Therefore, it is not shocking news that Ford shuts down EV plant and cut production of trucks a few weeks ago.
Ford Modifying the Electric Vehicle Strategy
Hopefully, now you have the answer to ‘Why did Ford stop making electric cars?’ we will discuss Ford’s recalibrated strategy. Ford is revising its electric vehicle strategy for multiple reasons. They are reassessing manufacturing plants in reaction to a slower-than-anticipated increase in electric vehicle sales. Also, they have emphasized building more inexpensive electric vehicles. They will do so to increase their customer base.
Furthermore, Ford pauses $3.5 billion EV battery plant and also postponed the launch of next-generation electric vehicles. It did so to maintain financial stability while the industry grew. They will do this due to huge economic losses in their electric vehicle subordinate, Model-E. Additionally, the car manufacturer decreased the number of battery-powered Mustang Mach-E vehicles it made. Also, it reduced car prices and shifted its focus to manufacturing more gas-electric hybrid automobiles. Even after these changes, Ford stays committed to the long-term potential of electric vehicles. Plus, it believes that cost equality with conventional gas cars is important for adopting electric vehicles. In short, after the ford lightning production halted, the company assessed the areas that needed attention.
Conclusion
Traditional car manufacturers have invested tens of billions of dollars to make a collection of electric models. Also, they are making factories to manufacture them and their batteries. But, the demand for electric cars has faltered. This is because the early customers have received their electric vehicles and more cautious customers are going through inflation and high interest rates. Price is one of the major issues, among other issues, that hinder the sales of electric vehicles.
Other problems include; car range, availability of charging sports, and higher insurance rates. It is the main reason, particularly for Ford that halted the F-150 lighting electric pickup production and shut down its main factory in Michigan next year. Now, hopefully, you get the answer why did Ford stop making electric cars?
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I am Muhammad Waqas and I am dedicated to promoting sustainable vehicles. Observing EV trends, studying the intricacies of the EV industry, and promoting new EV launches fall under my expertise. I have been working in this field for 5 years and making efforts for a sustainable and healthier future.
