Ford’s path to its electric vehicle (EV) production target will require slightly more time than originally projected. As revealed by a report in The Washington Post, Ford’s CEO, Jim Farley, anticipates the car manufacturing giant to reach its aim of producing 600,000 EV units annually in 2024, rather than the previously forecasted 2023. Ford was hoping to reach this output milestone by the end of 2023, with lithium iron phosphate batteries serving as a significant aid in cutting manufacturing costs and reducing reliance on materials such as nickel that are often subject to shortages.
During the company’s earnings presentation, Farley clarified that the acceleration of EV uptake will be somewhat slower than predicted in the short term. Still, he is optimistic about the potential benefits for pioneering companies like Ford. In his words, “EV customers have strong brand loyalty, and we are attracting many of them with our large-volume, first-generation offerings.” Ford’s dedicated EV division experienced a profitable second quarter, with a 39% rise in revenue from first-generation F-150 Lightning and Mustang Mach-E vehicles.
Following its announcement, Ford saw a surge of pre-orders for the F-150 Lightning, which led the company to halt reservations temporarily due to high demand. Recently, the vehicle’s prices were reduced, potentially to attract more customers amidst competition from other manufacturers like Tesla and General Motors.
Ford’s CFO, John Lawler, acknowledged the transition to EVs is in progress, though it might take longer than the industry initially anticipated. This delay also impacts Ford’s aim to produce 2 million EVs annually by 2026. While Ford hasn’t set a new timeline to achieve this production scale, Lawler assured that the company’s financial commitment to its EV initiatives remains unchanged.
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Frequently Asked Questions (FAQs) about Ford EV production delay
When does Ford now expect to reach its electric vehicle production goal of 600,000 units annually?
Ford now expects to reach its electric vehicle production goal of 600,000 units annually in 2024, a year later than its initial target of late 2023.
What contributed to Ford’s delay in reaching its electric vehicle production goal?
The delay in Ford’s electric vehicle production goal is attributed to a slower-than-expected pace of EV adoption in the near-term.
How did Ford’s all-electric division perform in the second quarter of the year?
Ford’s all-electric division performed well in the second quarter of the year, with revenue from the first-generation F-150 Lightning and the Mustang Mach-E vehicles increasing by 39 percent.
Why did Ford temporarily stop taking pre-orders for the F-150 Lightning?
Ford temporarily stopped taking pre-orders for the F-150 Lightning due to the high demand that followed its announcement.
What does the delay mean for Ford’s goal to manufacture 2 million EVs a year by 2026?
The delay in reaching the initial production goal also affects Ford’s aim to manufacture 2 million EVs a year by 2026. While Ford hasn’t provided a new timeline for this target, it continues to maintain the same level of financial investment in its EV initiatives.