Ford Revamps Electric Vehicle Strategy, Discontinues F-150 Lightning Production
In a strategic shift, Ford has announced the cessation of its fully-electric F-150 Lightning production. This decision is part of a larger overhaul of the company’s electric vehicle (EV) strategy, focusing instead on a new version of the truck known as an “extended range electric vehicle.” This model will feature a gas generator capable of recharging the battery for over 700 miles.
Details regarding the release date and pricing of the new F-150 Lightning model remain undisclosed by Ford.
Restructuring its EV business will cost Ford significantly, with a projected $19.5 billion expense. This includes an $8.5 billion writedown of its EV assets recorded in the fourth quarter, and $5.5 billion in cash charges spread through 2027.
The reorganization impacts several factories and employees and signifies the end of Ford’s next-generation all-electric truck project, codenamed “T3.” Unlike the Lightning, the T3 was intended to be a completely new design. Ford has also confirmed the discontinuation of plans for a new commercial van, although the E-Transit model will continue.
“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs and regulatory changes,” the company stated.
Despite these changes, Ford is advancing with plans to launch a mid-sized all-electric pickup by 2027. This vehicle will be built on a platform developed by a team that includes former Tesla executives Doug Field and Alan Clarke. The platform will support future Ford vehicles, and the company anticipates starting production of cost-effective lithium iron phosphate (LFP) batteries in 2026 at BlueOval Battery Park Michigan, using technology licensed from China’s CATL.
“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas, more trucks and van hybrids, extended-range electric vehicles, affordable EVs, and entirely new opportunities like energy storage,” stated Ford president Andrew Frick during a call with reporters.
Introduced in 2021, the F-150 Lightning was initially priced under $40,000, targeted primarily at fleet buyers. However, the EV faced challenges in the U.S. market, with Ford selling around 7,000 units per quarter on average, peaking at nearly 11,000 in late 2024.
The EV sector has encountered numerous challenges since the Lightning’s debut. A significant price war initiated by Tesla aimed to curb declining sales, impacting the already slim profit margins of traditional automakers. Additionally, the re-election of Donald Trump and a Republican-controlled Congress have reversed several policies from the Biden administration intended to boost EV sales.
More information on the pivot in Ford’s EV strategy can be found in the original articles from TechCrunch and Detroit News. Further details on the F-150 Lightning’s initial unveiling can be explored here.
Original Story at techcrunch.com