Ford Motor Co. halted the manufacturing and cargo of its F-150 Lightning electrical pickup after it found a possible battery failure throughout pre-delivery check-up inspections.
The information of the suspension in deliveries of the automaker’s electrical automobile (EV) model of its traditional pickup truck was first introduced on Feb. 14 by Motor Authority.
“We’re not conscious of any incidences of this situation within the discipline,” Ford spokesperson Emma Bergg informed Reuters in an electronic mail.
Bergg stated the order to cease manufacturing was issued in the beginning of final week and that the corporate was investigating the battery situation.
Ford has but to supply a timeline for a manufacturing restart and when it can raise the in-transit stop-ship order.
Demand Rises for Ford’s Electrical Pickup Truck
The Lightning is the electrical model of its fashionable F-150 pickup, which is certainly one of Ford’s top-selling fashions in america. Manufacturing of the EV truck is a serious a part of its aim to go full electrical over the following decade.
Demand for the EV truck has been robust from the start, with Ford receiving greater than 200,000 reservations for the F-150 Lightning after bookings opened in mid-2021.
The Detroit-based automaker has delivered 15,680 Lightnings up to now after deliveries commenced in Might 2022, in line with Barron’s.
Ford’s aim is to be have sufficient capability in place to construct two million EVs a 12 months by 2026—however the battery points would should be addressed.
Explanation for F-150 Lightning Battery Failure Stays Unknown
“The crew is diligently engaged on the foundation trigger evaluation,” Bergg informed CNBC, including they’re “doing the suitable factor by our prospects” and can resolve any potential points earlier than resuming manufacturing and shipments.
It’s unknown if the pause needed to do with batteries bought from suppliers, battery pack defects, or a software program situation concerning battery administration, which is widespread on all EVs.
Bergg stated that Ford is unaware of any incidents or points related to the potential battery situation.
A no-stop-sale order for the Lightnings already on supplier heaps haven’t been issued, which suggests sellers can proceed to promote the EV vehicles they’ve available. It’s also unclear if the current cease construct and cease ship order would have an effect on the supply timelines for customers awaiting their present orders of the F-150 Lightnings.
Nevertheless, since Ford is already struggling to scale up manufacturing of the truck to maintain up with shopper demand, the chance of much more prolonged wait instances is probably going.
Ford Had Disappointing Fourth-Quarter Outcomes
Earlier this month, Ford posted poor fourth-quarter outcomes and a lack of $2 billion for 2022 resulting from uncertainty over its semiconductor chip provide.
Ford CEO Jim Farley blamed systemic shortcomings round prices and methods that put the brakes on his plan to rework the corporate. “We’ve got deeply entrenched points in our industrial system which have confirmed robust to root out,” Farley to traders on the February convention name.
Farley had plans to increase its EV enterprise and arrange strains for its legacy conventionally powered autos, vans, and different business autos, however persistent supply-chain turmoil has delayed his imaginative and prescient.
The corporate might want to focus extra supply-chain enhancements and better trade volumes, in addition to on decrease prices for commodities and logistics.
The Detroit automaker added a 3rd work crew final December with the intention to increase manufacturing of Lightning and capitalize on robust demand for the EV.
In the meantime, Ford’s inventory worth prolonged its losses after information of the manufacturing halt, and was down 1.6 p.c by the afternoon.
Shares of Ford have declined 26 p.c up to now 12 months, in contrast with losses of round 6 p.c for the benchmark S&P 500 Index.
Bryan S. Jung is a local and resident of New York Metropolis with a background in politics and the authorized trade. He graduated from Binghamton College