Ford halts F-150 Lightning production amid $5B in EV losses

[Jack}

FORD’S EV BACKPEDAL CONTINUES-

WITH THE AUTOMAKER’S ELECTRIC CAR DIVISION NOW SET TO TAKE ABOUT A 5 BILLION DOLLAR LOSS THIS YEAR.

STARTING NEXT MONTH, FORD WILL HALT PRODUCTION ON ITS F-150 LIGHTING-

THE SAME MODEL THE COMPANY SAID THEIR CEO JIM FARLEY DRIVES DAILY-

AFTER PREVIOUSLY DRAWING CRITICISM FOR SAYING HE OWNS A CHINESE-MADE ELECTRIC VEHICLE.

THIS STOPPAGE ON THE ASSEMBLY LINE IS SET TO LAST UNTIL EARLY JANUARY-

AS FORD WORKS TO ADDRESS HIGH INVENTORIES AND REDUCE THE FINANCIAL DEFICIT RELATED TO ITS EV BUSINESS.

THE COMPANY HAS AT LEAST 100 DAYS WORTH OF SUPPLY ON ALL ITS ELECTRIC OFFERINGS, ACCORDING TO COX AUTOMOTIVE-

AND IS HOPING TO GET THAT STOCK DOWN TO ABOUT 50 DAYS WORTH OF SUPPLY.

AS A RESULT AROUND 730 HOURLY WORKERS AT THE AUTOMAKER’S MICHIGAN PLANT WILL BE PLACED ON A TEMPORARY LAYOFF-

ALTHOUGH NOT ALL OF THE WORKERS WILL BE LAID OFF FOR THE ENTIRE DURATION OF THE DOWNTIME.

THE MOVE COMES JUST A FEW MONTHS AFTER FORD SLASHED ITS EV SPENDING FROM 40 TO 30 PERCENT OF ITS BUDGET.

REPORTING THAT THE COMPANY LOST ABOUT 100,000 DOLLARS ON EVERY ELECTRIC VEHICLE IT SOLD-

AS IT PUSHED BACK PRODUCTION ON ITS ANTICIPATED ELECTRIC PICKUP TRUCK FROM THIS YEAR TO 20-27 AND CANCELED PLANS FOR AN ELECTRIC THREE-ROW SUV.

FORD EXECUTIVES SAY THEIR NEXT GENERATION OF EVS WILL BE LESS COSTLY THAN THE CURRENT ONE-

AND THAT THEY NOW WON’T LAUNCH A PRODUCT UNLESS IT CAN BE PROFITABLE WITHIN A YEAR.

TO GET MORE STORIES ABOUT THE ELECTRIC VEHICLE INDUSTRY, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME – JACK AYLMER.