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Home » Inventory Planning/ Optimization » Ford Restarts EV Truck Plant as Price Cuts Spark More Demand

Ford Restarts EV Truck Plant as Price Cuts Spark More Demand

A RED FORD LIGHTNING F-150 IS PARKED NEAR SOME TREES AND OTHER TRUCKS ON A CLEAR, SUNNY DAY.
Sebastopol, California. May 2022. Photo: David Paul Morris/Bloomberg
August 2, 2023
Bloomberg

Ford Motor Co. restarted production of F-150 electric Lightning pickup trucks as it bets price cuts will spark demand for fully electric vehicles among a broader swath of U.S. drivers.

Customers have had to wait on orders while Ford restocked vehicles after battery issues halted production at the plant during the spring of 2023. It paused output for another six weeks this summer to retool its Dearborn, Michigan facility. The company expects F-150 Lightning sales to “significantly increase” in September and October as production ramps up and it fills backorders, executives said August 1.

“We are expanding capacity right now. We’re going to be filling that capacity. We’ll have to see how the market plays out,” said Marin Gjaja, chief customer officer for Ford’s model-e unit. “The demand is there. We now have the supply to match it.”

Read more: Ford Battery Plants on Track to Receive $9.2bn Federal Loan

Ford has slashed prices for the F-150 Lightning by as much as 17% to capture more share of the nascent U.S. EV market and fend off competition coming from Tesla Inc. and General Motors Co. The price cuts enable all but the priciest pickup trims to qualify for as much as $7,500 in consumer EV tax credits.

Ford reiterated its plans to boost capacity to 150,000 trucks a year by the third quarter of 2023. It’s training an additional 1,200 workers to help increase its supply, the company said.

The price cuts have helped drive a sixfold increase in orders and a threefold increase in web traffic, Ford said August 1.

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