Ford, the dominant force in American truck sales, has recently taken a significant step back from its electric vehicle ambitions, specifically concerning the F-150 Lightning. Last month, the company announced an indefinite suspension of Lightning production, transferring hourly employees to a nearby plant focused on gas-powered truck manufacturing. This move highlights a growing concern: the Lightning, despite being the best-selling electric pickup truck in the country, may not be financially viable for Ford.
Production Halt and Shifting Focus
The decision to pause Lightning production wasn’t made in isolation. A supplier fire initially disrupted operations, but Ford framed the adjustment as an opportunity to prioritize “more profitable” vehicles that rely less on aluminum. This shift suggests that the Lightning’s production costs and sales performance have fallen short of Ford’s expectations. The reliance on aluminum, which is a more expensive material than steel, has been a recurring challenge in the electric truck’s financials.
Disappointing Sales Figures
The sales numbers paint a clear picture of the Lightning’s underperformance. During the third quarter, Ford delivered only 10,005 Lightning trucks, bringing the year-to-date total to 23,034 units. While this represents a 1% increase compared to the previous year, it’s a lackluster result, especially considering Ford’s overall sales volume. To put this into perspective, the Lightning is being outsold by several other Ford vehicles, including the Lincoln Nautilus (26,237 units), the E-Series (30,195 units), and even the Mustang (32,818 units).
Potential Cancellation Looms
Reports from the Wall Street Journal indicate that Ford executives are actively discussing the possibility of discontinuing the F-150 Lightning altogether. While no final decision has been made, the ongoing conversations signal a serious reevaluation of the electric truck’s future within the company’s product lineup.
General Motors Faces Similar Challenges
Ford’s struggles aren’t unique. Other automakers are also facing headwinds in the electric truck market. Ram recently cancelled its all-electric 1500 REV, and General Motors is reportedly considering eliminating some of its electric truck offerings, including the Chevrolet Silverado EV, GMC Sierra EV, and GMC Hummer EV Pickup.
GM’s Sales Lagging
GM’s electric truck sales have been underwhelming. Through the third quarter of the year, Chevrolet sold just 9,379 Silverado EVs, while the Sierra EV garnered only 6,147 sales. Combined sales of the Hummer EV pickup and SUV totaled 13,233 units. These numbers underscore a broader trend: the electric pickup segment isn’t yet reaching the sales volume needed to justify the substantial investment required.
Even the BrightDrop electric van, which GM recently discontinued, sold just 3,976 units in the first nine months of the year. Considering this context, the GMC Sierra EV appears particularly vulnerable to potential cuts.
The electric pickup truck market is proving to be more challenging than anticipated, requiring automakers to reassess their strategies and potentially make tough decisions about which models to continue supporting.
Despite these concerns, a GM spokesperson maintains that the company has “no plans” to alter its product lineup or overall direction, emphasizing progress in reducing production costs. However, the increasing pressure on profitability in the EV market suggests that even GM may need to re-evaluate its electric truck portfolio in the future.
Ultimately, the fate of Ford’s F-150 Lightning and GM’s electric truck lineup hinges on the company’s ability to improve sales, reduce production costs, and demonstrate the long-term viability of electric pickups in a competitive market. The current trends indicate a shift toward prioritizing more established and profitable vehicle segments, leaving the future of electric trucks in question
