Last week, there were rumblings that Ford would not be able to meet demand for its electric F-150 Lightning pickup and that a price hike was incoming. Ford then announced that it would increase production by 200%, sending Ford's stock price soaring. Ford expects to increase EV production to 600,000 vehicles in 2 years, making it the second largest EV maker in North America.
Ford announced today that it will increase the production capacity of its electric pickup truck, the F-150 Lightning, by 100% to a target of 150,000 vehicles per year by 2022, inspiring owners and investors alike.
The Ford F-150 is the best-selling car in the United States. Since the release of the pure electric version, the F-150 Lightning, in 2021, Ford has received more than 200,000 orders, thanks to good word of mouth. Major car manufacturers face a shortage of materials so, since you have to wait, it is better to pre-order this electric truck.
▲Ford requires more automated production lines to increase capacity
Compared with the direct sales and online shopping channels adopted by electric vehicle startups, traditional car manufacturers still rely on their distribution systems to sell cars. With the current lack of inventory, this distribution system faces inherent challenges.
Originally, Ford expected to produce 80,000 F-150 Lightnings by 2024 but the number of pre-orders reached as many as 200,000. Last week, this trend began spreading to dealers in various places. In order to get their hands on a car, dealers raised pricing, with an increase of around US$10,000 (approximately NT$280,000) even as high US$30,000 or more for high-end models.
Take the top of the line fully loaded F-150 Lightning Platinum as an example, the latest pricing of this vehicle is close to $100,000. This price hike concept reminds people that when it is difficult to find a container in the shipping industry, shipping companies have also begun to charge "guaranteed container fees" and now dealers have also learned this trick.
This is certainly not ideal for Ford, since the company does not benefit from unexpectedly appreciating car prices, while it does scare away consumers. Therefore, Ford announced that it will increase the production capacity of electric vehicles by 100% starting in 2022.
Ford will build 15,000 F-150 Lightnings in 2022, 55,000 in 2023, and a total of 150,000 by 2024 to absorb these huge orders.
At the same time, production will increase on Ford's electric business van E-transit and electric Mustang Mach-E SUV. Electric Mustang production will be tripled to 200,000 vehicles by 2023. Ford estimates that in the next two years, its electric car factories around the world will reach a production capacity of 600,000 vehicles per year.
Ford is currently building their newest and largest factory in their hometown of Tennessee, designed specifically for the production of F-Series electric pickups, with production starting in 2025. In addition, construction is also accelerating on the three battery factories conceived in partnership with South Korea's SK Innovation to provide for the needs of next generation Ford and Lincoln electric vehicles.
Driven by a bevy of news, Ford's stock price rose 11.67% today to a 20-year high, closing at US$24.31.
（Image：Ford）