Ford F-150 Lightning electric pickup can gain first-mover advantage

DIGEST – Ford Motor is set to be the first automaker to bring a full-size, mainstream electric pickup to the U.S. market, poised to take advantage of its forerunner in what is expected to be a fierce competition in the coming years.

Ford CEO Jim Farley says the company plans to scale production of the electric F-150 Lightning pickup truck faster than competitors, with plans to to increase production of Lightning at a plant in Dearborn, Michigan, to 150,000 units over the next year or so, up from its original goal of 40,000 vehicles.

That will be the short plan of Rivian Automotive and Synthetic engine, is expected to amount to tens of thousands. Both are making and selling more expensive electric pickups in the smaller and larger truck segments.

Other companies, especially electric vehicle startups, have previously touted electric pickups as a big opportunity, but have so far failed to do so on a large scale.

“In this market, being a frontrunner is a very, very important move,” Farley told CNBC. “We didn’t know we were going to be first, but we worked quickly where we had, and it turned out that way. I think that’s probably one of the most important advantages. that we have.”

Ford is “confident” that it can hit its 150,000-unit production target, according to Farley. He said the company has secured the lithium-ion batteries needed for that level of production – a major concern for investors and Wall Street Analysts. Ford will also prioritize supplying semiconductors, which have been a major problem in the supply chain for more than a year, to Lightning, Farley said.

“We’re not joking. We think this is as big a product as it was when the Model T came out for us,” Farley said, referring to Ford’s flagship product said to be the catalyst for adoption. Use a variety of vehicles from horses and carts. starting in 1908.

Some believe the F-150 Lightning could be the first real test of whether Americans are ready to adopt electric vehicles. Teslas. Pickups are also important to Ford $42 billion truck franchise and maintained its decades-long sales dominance as America’s best-selling trucks and vehicles with its F-Series pickups.

While Rivian’s R1T . electric pickup As the first car to go on sale last year, it’s a smaller car than the Lightning and starts at $67,500. GM also started shipping Its GMC Hummer EV pickups late last year, but they’re larger than the F-150 Lightning and initially cost around $110,000.

F-150 Lightning starting at around $40,000 for the work-oriented version and $53,000—thousands of dollars less than the average price paid for a new vehicle—for a consumer pickup.

Ford has begun production of the marketable F-150 Lightning. The automaker is expected to start delivering the new electric trucks to dealers within the next few days.

First to receive F-150 Lightning will be selected fleet or commercial customers and 200,000 people holding seats those who have placed a $100 refundable deposit on the car since it was announced last May. According to Farley, it could take more than a year for Ford to fulfill those orders.

That timeframe is longer than the historic lead for such vehicles but is still expected to be earlier than other electric vehicles. New orders for the Hummer EV are not expected to be completed until 2024, and Rivian only expects produced 25,000 vehicles this year.

Farley said the company is sharing the F-150 internal combustion engine plant, helping them to reach between 150,000 and 200,000 units of production per year.

“We build a million F-150s a year. We know how to do it. And we’re incredible at scale,” he said.

Ford’s formula for profit with the F-150 Lightning is scale indeed. Lightning shares parts like seats, doors, and much of the car’s interior with its traditional gas-powered cousins ​​to support supplier pricing and growth.

It’s a different strategy from GM, Rivian and Tesla, all of which have unique electric truck platforms. And it’s a strategy that has helped Ford bring cars to market.

Parts sharing is also expected to help boost output, but it has drawn criticism from the company that a dedicated EV platform is preferred. Ford is finally expected to build a dedicated EV platform at a new plant in Tennessee.

Unlike the Hummer and R1T, Ford is making the F-150 Lightning its target for fleet customers. About 20% to 30% of production will initially go to those customers, but Farley said he believes demand from companies and working customers could eventually overtake the consumer market.

Ford’s F-Series, which includes the F-150 pickup and its larger siblings, has been America’s best-selling vehicle. for 40 consecutive years and the industry’s best-selling truck for 45 years. Ford also doesn’t want to give up the title when it comes to electric pickups.

“We’re not giving up our future to anyone,” Farley told CNBC last year. “Our electric strategy is very specific. We’ll invest in segments where we’re the dominant player and we scale, like our F-150, our Transit van, our Mustang.”

Ford has announced plans to increase production capacity to 2 million EVs by 2026, as it sought to become the second-largest seller of such vehicles, after Tesla, at the time. Its biggest competitor, GM, says it plans to overtake Tesla in domestic electric vehicle sales by 2025.

Both automakers have a lot of work to do to combat Tesla, which accounted for about three out of four electric vehicles sold in the first quarter of this year.