Ford’s decision to discontinue the all-electric F-150 Lightning has sent shockwaves through the auto industry. The move comes as Ford faces a massive $19.5 billion write-down related to its electric vehicle investments, marking one of the largest impairments ever taken by a U.S. company.
CEO Jim Farley explained the rationale behind the decision, stating that instead of continuing to invest in large electric vehicles that were not profitable, Ford will pivot towards hybrids and extended-range electric vehicles (EREVs). Farley acknowledged that the high price point of the F-150 Lightning, ranging from $50,000 to $70,000, did not resonate with buyers, leading to disappointing sales figures.
Farley emphasized that Ford will focus on building up its lineup of hybrids, which offer a more practical solution for truck buyers. EREVs, which combine electric driving with a gasoline-powered generator for extended range, are seen as a better fit for the U.S. truck market in terms of range, cost, and usability.
The decision to discontinue the F-150 Lightning comes after multiple production slowdowns due to weak demand. Despite being positioned as a flagship electric vehicle, the Lightning failed to gain the traction Ford had hoped for. The company has reportedly lost around $13 billion on its EV business since 2023.
Ford now aims to strengthen its lineup of gas-powered vehicles while focusing on hybrids and EREVs. The company still plans to introduce a more affordable $30,000 electric pickup by 2027. The cancellation of the F-150 Lightning highlights the challenges of selling large, expensive electric trucks in the current market.
Overall, Ford’s shift away from the F-150 Lightning reflects a broader industry trend towards reevaluating the viability of high-priced electric vehicles. The move underscores the importance of aligning with customer expectations and market demand in the rapidly evolving automotive landscape.