F-150 Lightning on display on the New York International Auto Show, March 28, 2024.
Danielle DeVries | CNBC
DEARBORN, Mich. — Ford engine is lowering starting prices on some all-electric F-150 Lightning pickup trucks because it prepares to resume shipping vehicles after quality problems.
The included models are expected to ship later this month for between $2,000 and $5,500 lower than before the automaker halted deliveries in early February due to undisclosed quality issues.
The biggest price drop is for the mid-level Flash trim within the pickup, which is now $5,500 lower at $67,995. This was followed by a $2,500 price cut for Lariat models, now priced at $74,995, and a $2,000 price cut for XLT models with a brand new price of $62,995.
Prices for the $54,995 base Pro model and $84,995 top-of-the-range Platinum model remain unchanged.
The cost cuts are the most recent changes in electric vehicle prices within the broader automotive industry amid slower-than-expected consumer adoption of electric vehicles. Ford’s cuts come three months after Lightning price adjustments, including price increases on some models.
“It’s part of a normal response to the location of the market, our sourcing and the location of our inventory … which we do all the time,” Ford Chief Operating Officer Kumar Galhotra told reporters on the sidelines of an event on the F-150 plant in Dearborn, Michigan. “New technologies like electric vehicles take time to find the right middle ground and balance.”
A brand new Ford F-150 truck moves through the assembly line at Ford’s Dearborn plant on April 11, 2024, in Dearborn, Michigan.
Bill Pugliano | Getty Images
Galhotra declined to comment on the character of the issues that caused deliveries to be halted, or why gasoline and diesel versions of the F-150 were held for months after production began. Generally, engineers are continually writing software for vehicle modules which are connected by modems to detect any anomalies and determine defects.
“There were a few minor issues,” Galhotra said. “When we find a solution, we fix it and ship it out. … We try to find everything we can.”
IN media materials released Thursday, Ford addressed what it called an “unprecedented truck offensive,” saying it assembled 144,000 full-size and mid-size F-150 pickup trucks in the primary quarter of the yr which are going to dealers and customers. About 92 percent built pickup trucks there have been F-150 pickups.
Having a big number of vehicles is not a very good thing for an automaker. This means higher costs on the books and delays in deliveries to dealers and customers.
Automotive news reported last month that Ford has returned to the controversial practice of targeting dealer incentives, called staggered programs, intended to boost vehicle sales. Since February, the automaker, which didn’t immediately respond to a request for comment in regards to the program, has been offering retailers increasingly larger money bonuses in the event that they meet and exceed monthly F-150 sales goals, according to Automotive News.
Last yr, Ford also delayed deliveries of its larger Super Duty pickup trucks, a sibling of the F-150, by months to conduct additional quality checks and inspections amid problems with recent launches that led to vehicle recalls and high warranty costs.
“We will always put quality first. These are very complex vehicles with complex launches. We want to take some time to make sure everything is right, everything is perfect,” he said. “And once we are satisfied with the quality level, then and only then will we begin shipping to our customers.”
Ford said warranty costs contribute to $7 billion to $8 billion in cost savings annually compared to traditional competitors.
Credit : www.cnbc.com