Ford Suspends F-150 Lightning Production as EV Demand Slows and Financial Challenges Rise

Ford pauses F-150 Lightning production amid weak EV demand, adjusting strategy to align with profitability goals

Oct 31, 2024

Summary

Ford halts F-150 Lightning production for seven weeks as EV demand lags and financial pressures mount.

Starting Nov. 15, Ford Motor Co. (F, Financial) will suspend production of its F-150 Lightning electric truck for seven weeks extending through Jan. 6, 2025, as demand for electric cars (EVs) continues below company expectations, according to sources. Ford informed Automotive News that the interim stoppage is meant to help production be adjusted to match profitability with sales expansion.

Ford's EV division still suffers financial difficulties even if F-150 Lightning sales doubled in Q3. Unlike a 13% sales gain in the company's commercial division and a 3% rise in internal combustion engine vehicle sales, Ford Model revealed in its most recent earnings report a $1.2 billion EBIT loss with a 33% reduction in revenue from the previous year.

During the company's earnings call this week, Ford CEO Jim Farley addressed the "slow uptake" of EVs, emphasizing that this trend influences more than only Ford. While Tesla's (TSLA, Financial) Cybertruck and Rivian's (RIVN, Financial) R1T create competitive pressure, rivals like General Motors (GM) are also seeing EV losses.

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