Postliminary to a six-week hiatus for retooling and upgrades, Ford Motors officially announced on Tuesday that its electric F-150 Lightning production has resumed operations in its Rouge Factory in Dearborn, Michigan. Coinciding with the notable price reductions on the EV, Ford has seen a significant upsurge in F-150 Lightning’s demand.
Ford had implemented a strategic move. Ceding out price cuts varying based on the trim level, of up to $10,000 on the F-150 Lightning last month, the starting price for the most affordable version of Ford’s electric truck now stands at approximately $50,000.
Ford F-150 Lightning Production: Rouge Factory Production
These price adjustments proved to be a catalyst, consequently in a sixfold increase in new orders for the F-150 Lightning, as highlighted by Marin Gjaja, Chief Customer Officer for Ford’s “Model E” EV unit.
“We’ve sold stock even when we were shut down in June and July. We’ve also got ground stock to be replenished as well as demos to deliver.”
While precise numerical data was not disclosed, Gjaja did reveal that Ford had accumulated a backlog equivalent to 45 days’ worth of orders to be fulfilled.
Surprisingly, more than half of these new orders are concentrated on Ford’s electric trucks with the higher-priced XLT trim, which commences at roughly $55,000 and brags an estimated range of 240 miles as certified by the EPA. Consequently, Ford has taken steps to recalibrate its production mix, in order to meet the increased demand for the Lightning XLT.
Despite the surge in orders, the recent pause in production will result in modest delivery totals for the Lightning until September. However, Gjaja remains optimistic, stating that deliveries are anticipated to experience a significant uptick in late September and October as the upgraded factory attains full production capacity.
By the end of September, the factory is projected to achieve a targeted annual run rate of 150,000 vehicles per year – tripling its production capacity.
To accommodate this expanded capacity, the factory has proliferated its workforce with about 1,200 new employees. These recruits are expected to complete their training within a three-week timeframe. Furthermore, Ford is also ramping up production at the facilities responsible for supplying battery packs and electric motors for the F-150 Lightning.
Ford F150 Electric Truck: Production Restart
This development of Ford’s F-150 Lightning production restart comes at the posterior of a somewhat somber earnings report – the Blue Oval lost $1.1 billion before taxes and interest on its EV business. This figure is twice the amount it lost over the same period in 2022.
However, the Rouge Electric Vehicle Center (Rouge Factory) underwent substantial expansion during the shutdown, growing from 505,000 square feet to 875,000 square feet.
As a symbolic part of these upgrades, Ford introduced new equipment for automatic measurement and validation of exterior body fit, personifying the utilization of such tools in Ford’s North American plants for the first time.
The addition of a third station for validating wheel alignment and headlamp aims to enhance driver-assist technology further, contributing to the factory’s enhanced capabilities.
Ford is now positioned to exceed expectations, with factory workers at the Rouge factory projected to assemble over 70,000 electric trucks by 2023 alone.
The automaker has shrewdly commenced production with the in-demand XLT trim level, which commands over 50 percent of customer orders. Moreover, the Pro versions of the F-150 Lightning (the more affordable models), will also be made available to customers in limited quantities, while new trim levels are poised to join the product lineup shortly.
Additionally, the decision to slash prices on the F-150 Lightning by up to $10,000, came at the heels of intensifying competition within the EV sector and a surge in dealership inventory.This proactive approach to pricing was a response to customer feedback, particularly after reports of cancellations among F-150 Lightning reservation holders due to price hikes surfaced. The expectation of significant losses in its EV business for the entire year of 2023, coupled with adjusted production projections, underscores the complex challenges Ford faces in the rapidly evolving EV landscape.
