Ford Motor Co F has doubled its production target for the F-150 Lightning pickup truck ahead of its 2022 launch and plans to spend an additional $850 million to meet that target, Reuters reported on Monday, citing people familiar with the matter.
What Happened: The Dearborn, Michigan-based automaker is now aiming to raise the F-150 Lightning’s annual production to 80,000 vehicles in 2024, compared with its previous production target of above 40,000 vehicles.
The new production target includes plans to build about 15,000 units next year after the electric truck's spring launch and 55,000 in 2023, Reuters noted.
Ford claims to have 120,000 customers lined up with reservations for the F-150 Lightning.
See Also: Ford Raises 5-Year EV Investment Target To $30B After High-Flying F-150 Lightning Launch
Why It Matters: Ford is expecting the popularity of its most-sold and the most-profitable full size pickup truck F-150 to trickle down to its electric variant as well. The Reuters report, citing a Ford supplier, noted suppliers were “pleasantly surprised” by the demand for the F-150 Lightning, which was unveiled in May and is scheduled to be rolled out for deliveries in spring 2022.
Under pressure from governments, Ford and other legacy automakers such as General Motors Co GM and Volkswagen Ag VWAGGY have all set aside billions of dollars and are setting tighter deadlines to switch their portfolios to electric vehicles.
Tesla Inc TSLA, which disrupted the automarket, is miles ahead with annual sales and even upstart Chinese EV players such as Nio Inc NIO, Li Auto LI, and Xpeng Inc. XPEV have successfully rolled out electric vehicles and are now eyeing overseas expansion.
Price Action: Ford shares closed 1.27% higher at $12.73 on Monday.
Photo: Courtesy of Ford
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