Ford Cites Change In Market Demand, Slashes F-150 Lightning Production Targets

Ford Motor Co F has reportedly decided to cut its production targets for the F-150 Lightning electric pickup by half starting next year in response to “changing market demand.”

What Happened: Ford has directed its suppliers to brace for a weekly average production of approximately 1,600 Lightning vehicles at its Rouge Electric Vehicle Center in Dearborn, Michigan, starting January, Automotive News reported, citing a planning memo. This represents a substantial decrease from the initial plan of assembling an average of 3,200 units weekly. The production of gasoline-powered pickups at plants in Michigan and Missouri, however, will stay the same.

Ford did not immediately respond to Benzinga‘s request for comment.

Why It Matters: During its third-quarter earnings call, Ford announced that it would delay its $12 billion EV investment including by delaying its EV battery plant in Kentucky. CEO Jim Farley added that the company will instead continue to focus on combustion engine vehicles and hybrids while it scales its EV business.

"Our bet is maybe different than others who just said, look, we're going to get rid of an ICE Explorer and go to an EV Explorer. That's not our strategy," Farley then said.

During the third quarter, the company's EV unit posted a loss in earnings before interest and taxes of $1.3 billion, taking its nine-month EBIT loss to $3.1 billion.

Ford’s Lightning sales, however, are on an upward trajectory. In November, Ford sold a record 4,393 units, marking a 113% jump year-on-year.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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