Ford Is Losing Money on Every EV F-150 They Sell
Ford’s F-150 Lightning was supposed to be the electric vehicle that marked the beginning of its move toward the EV world. Yet, the production of the vehicle is currently hemorrhaging money from the company, forcing them to halt production.
The American company revealed it’s losing tens of thousands of dollars on each vehicle and decided to fire over 70% of its EV workforce as they ramp up production on gas-powered vehicles.
Unveiling of the Next Generation
Ford first announced the F-150 Lightning back in May 2021. The full-size truck is 100% electric and marked the beginning of the company’s transition to electric vehicles.
However, less than three years into production, it appears that Ford is going back on its EV commitments as news broke that over 70% of the F-150’s workforce was let go.
Downsizing of the F-150 Workforce
According to reports, around 1,400 workers lost their jobs at Ford’s F-150 Lightning manufacturing plant.
The unforeseen decision has led to a fair deal of controversy for the American vehicle company, as critics see it as a shift away from the production of EVs.
Losing Money on Every Vehicle
The decision will undoubtedly raise a few eyebrows, especially considering the F-150 has been credited as the nation’s bestselling electric pickup.
Yet, according to Ford’s explanation, the company loses anywhere from $34,000 to $36,000 every time it sells an F-150.
Problems Arising with the F-150
Among the minor issues leading to the vehicle’s poor financial performance, a few major concerns have drastically impacted its marketability.
Average charging speeds and poor charging infrastructure have allowed EV competitors to draw in more of the market’s customers.
Increased Staff for Gas Vehicles
With the news of massive cuts at the F-150 plant, Ford also announced it would be taking on an extra 900 workers to increase the production of the Ford Ranger and Bronco models.
Yet, as it stands, neither of these vehicles has an electric or hybrid option. Online critics have begun questioning whether Ford will keep to its promise of transitioning to environmentally friendly vehicles.
Suppliers Raise Concerns
Investors and suppliers have been left unsure of Ford’s future after investing heavily in equipment and machines to meet the company’s initial EV targets.
With such a drastic turn of events, many are left questioning the growth trajectory of the EV industry.
Ford Halts Gas on EV Battery Plant
With the decrease in EV jobs, Ford also announced it is holding off on accepting $12 billion in EV investments.
The American vehicle manufacturer also postponed the opening of its electric battery plant in the state of Kentucky.
Ford Having Problems in the EV Department
As it stands, there are more questions than answers regarding Ford’s decision to reduce F-150 production. While the company claims the delays are simply a way to reassess the market, not everyone is so sure.
Critics believe unforeseen issues may be arising with Ford’s electric vehicle manufacturing departments.
Problems with Supply Chains
The Electric Viking received various comments under his video, with many giving their opinion on what is truly going on with Ford’s EV production.
“The slow pace of EV production by the traditional OEMs means their demands for parts will be small. This means they will never establish cost-effective supply chains. If EVs are the future, traditional OEMs are, without a doubt, doomed,” wrote one user.
Ford Advised to Wait Out the Storm
Others believe Ford needs to accept the losses until its next-gen EV F-150 is ready for release.
“Ford has to curtail losses on the present F150 Lightning until their next-gen pure EV F150 is ready for production. The same for all their EVs, I would say. Efficiencies have been identified on the path to profitability but will require new pure EV designs to accomplish that,” one viewer wrote.