EXCLUSIVE Ford doubles Lightning’s production target in strong pre-launch demand, sources said

DETROIT, Aug. 23 (Reuters) – Ford Motor Co. (FN) has doubled its production target for the F-150 Lightning due to strong initial demand for the full-size electric pickup truck before its launch in 2022 and The company plans to spend an additional $ 850 million to achieve this goal, said several people and vendors familiar with the plans.

According to sources, the No. 2 U.S. automaker is aiming for annual production of more than 80,000 by 2024, up from its previous target of more than 40,000, according to sources, who asked that they not be identified. Shares of Ford rose 1.3% on Monday.

“They were pleasantly surprised by the lightning demand,” one source said about Ford officials.

Industry observers have questioned whether individual buyers will abandon their gas tablets for electric models, but commercial customers are pushing for electric trucks and vans to reduce their carbon footprints.

The ramp to the new production target includes plans to build about 15,000 next year after the spring launch of the electric truck and 55,000 in 2023, a second source said. Following the launch of the second-generation Lightning in late 2025, the annual target is 160,000.

The increase is more than a 50% increase from Ford outlined last November, sources said.

Driving the most optimistic targets is strong demand prior to vehicle launch, especially with commercial customers, sources said.

“We are excited about customer demand for the F-150 Lightning and already have 120,000 customer bookings, and we will continue to look for ways to break the constraints and meet customer demand,” Ford said in a statement. The company declined to comment further.

Ford and other global automakers are competing to switch their gasoline lines to all-electric power under pressure from regions such as Europe and China to reduce vehicle emissions. U.S. President Joe Biden has called for $ 174 billion to increase production, sales and infrastructure of American electric vehicles.

In May, Ford outlined plans to increase electrification spending by 2030 by more than a third to more than $ 30 billion. Ford also announced this month plans to form a battery joint venture with South Korean battery maker SK Innovation Co. (096770.KS) that would open two plants in North America. Read more

Ford’s EV strategy focuses on leveraging its strongest brands, as the electric F-150 and Transit van join the Mustang Mach-E SUV. The gas-powered F-150 has been the best-selling vehicle in the United States for more than four decades.

Other automakers with plans to introduce electric pickups include General Motors Co. (GM.N) and Tesla Inc. (TSLA.O), as well as startups Lordstown Motors Corp. (RIDE.O), Canoo Inc. (GOEV.O). and Rivian. Ford has a stake in Rivian.

The increase in Lightning’s production target makes some vendors worried about the additional investment it will entail and has no doubt that demand for electric collectors will meet Ford’s expectations.

“It really puts suppliers in a difficult situation if the volume is not met,” said a supplier executive, who asked that they not be identified.

The redesigned F-150 Lightning, scheduled for late 2025, is expected to be the first to employ Ford’s new TE1 truck architecture, AutoForecast Solutions said earlier. The first-generation Lightning uses a platform heavily derived from the F-150 standard. Read more

Reports by Ben Klayman and Joseph White, additional reports by Heekyong Yang in Seoul; Edited by Howard Goller

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