Several automakers, including Ford Motor, have had to reduce their production plans for electric vehicles due to slower-than-expected growth in sales. As a result, Ford has informed its suppliers that it now anticipates producing an average of 1,600 electric F-150 Lightning pickup trucks per week in 2024, which is about half of its previously projected level.
The diminished target is indicative of the decreased expectations for sales of battery-powered cars and trucks. Both Ford and General Motors had been striving to ramp up production of electric vehicles, but consumer interest has not kept pace with these plans over the past six months. Various factors, such as high prices of electric vehicles and concerns about the availability and reliability of charging stations, have contributed to this disparity.
Similarly, Ford had aimed to have the capacity to manufacture 600,000 battery-powered vehicles annually by the end of next year. However, the company has also lowered its production plans for its electric sport utility vehicle, the Mustang Mach-E.
Amid these changes, Ford stated that it still expects 2024 production and sales of the Lightning to surpass 2023 levels. However, it acknowledges the need to adjust future capacity to better align with market demand.
Traditional automakers, spurred by Tesla’s growth, have invested heavily in developing electric models and upgrading their factories. However, even Tesla has encountered challenges with slower sales growth, prompting the company to reduce prices on popular models several times.
Other companies have also postponed plans for new electric models, and Ford has announced a reduction in the size of one of its battery plants under construction in the United States.
Early interest in electric vehicles has not always translated to strong sales, with cost being a significant factor. High battery prices have led to higher costs for some electric vehicles compared to gasoline-powered models, which has deterred some consumers.
In addition to cost, the availability of charging stations has been a concern for potential electric vehicle buyers. Some have cited challenges in finding charging stations and long wait times as reasons for hesitation in purchasing electric vehicles.
