DETROIT — Ford Motor Co. believes its latest product, the F-150 Lightning, might be transformational.
However the automaker nonetheless has loads of work forward to appreciate the battery-powered pickup’s potential and turn out to be the industry-leading electric-vehicle purveyor that CEO Jim Farley envisions.
Ford’s first-quarter earnings have been down year-over-year — even setting apart a $5.4 billion loss on its funding in Rivian — because the automaker struggled with lingering provide chain points tied to the worldwide semiconductor scarcity. The corporate additionally reduce practically 600 salaried and company jobs, a touch of extra modifications to return as it really works so as to add new expertise amid a sweeping reorganization.
Executives consider, nevertheless, that the manufacturing challenges which have stunted Ford’s progress since 2020 may quickly ease, and that its revamped product portfolio is precisely what the market needs.
“We’ve not actually had any open-field operating, so to talk, in in all probability two years,” Government Chair Invoice Ford advised reporters at an occasion marking the beginning of Lightning manufacturing this week. “However the excellent news is our order banks are full and the demand may be very excessive for our merchandise. I really feel very assured we are able to ship what we stated we will.”
The automaker plans to ramp up Lightning manufacturing to a run fee of 150,000 autos yearly by subsequent yr. It expects to turn out to be the No. 2 EV maker, behind solely Tesla, within the subsequent two years with quantity of 600,000 EVs globally, after which problem for the highest spot later this decade.
Ford, already chopping into Tesla’s market share with the Mustang Mach-E, successfully has the mainstream, full-size electrical pickup market to itself till the Chevrolet Silverado EV arrives in a couple of yr, a window of alternative that would pay dividends in a profitable section. The 2 electrical pickups already on sale, the GMC Hummer EV and Riviant R1T, are extra area of interest, luxurious autos.
Executives say the Lightning’s worth level, capabilities and new options are serving to Ford herald prospects that in any other case would not contemplate the model. The pickup begins at $41,769 together with transport.
“It should vault them right into a management position simply from a quantity standpoint,” Jessica Caldwell, government director of insights at Edmunds, stated in an interview. “It isn’t simply going to be a Tesla-run market. Ford’s actually organising for the long run, however it is going to be tough getting via this era of stock points after which satisfying all that deferred demand.”
Ford has about 400,000 prospects ready for autos — representing $17 billion in income — that it could’t but promote due to the continuing microchip scarcity.
The corporate stated this week one difficulty with a semiconductor module on a windshield wiper scuttled sorely wanted manufacturing of its worthwhile Expedition and Lincoln Navigator SUVs. Ford’s wholesale shipments fell 9 % to about 970,000 from January via March.
The corporate has about 53,000 autos sitting round ready for chips or associated elements
“The potential of this enterprise is way stronger than what we have been in a position to present within the quarter,” CFO John Lawler advised reporters.
Ford this week stated its first-quarter adjusted earnings earlier than curiosity and taxes fell 41 % from a yr earlier to $2.3 billion, and income fell 5 % to $34.5 billion. After accounting for the worth of its Rivian stake falling by greater than half, Ford posted a web lack of $3.1 billion.
Nonetheless, the automaker reaffirmed full-year steering of $11.5 billion to $12.5 billion in adjusted EBIT, which might mark a 15 to 25 % rise from 2021. That is as a result of Ford expects the chip scarcity to get higher within the again half of the yr, resulting in manufacturing quantity will increase of 10 to fifteen % over 2021 ranges.
“The second half may be very important for us,” Farley stated on Ford’s earnings name. “We’ve got the chance to construct at volumes we’ve not had for some time, and we have now plenty of nice, contemporary merchandise. A variety of prices coming into the enterprise, however the second half is absolutely important for the corporate.”
Farley stated Ford constructed greater than 2,000 Lightnings within the first few weeks of manufacturing on the Rouge Electrical Automobile Heart in Dearborn, Mich., and that the primary ones quickly will probably be delivered to business companies.
Ford already has elevated the quantity of deliberate manufacturing twice, from an preliminary capability of 40,000 Lightnings a yr to 150,000.
“The actual fact this automobile has gotten a lot curiosity and triggered Ford to extend deliberate manufacturing capability is an indicator that maybe the mainstream is absolutely prepared for EVs,” Sam Abuelsamid, principal analyst at Guidehouse Insights, stated in an interview. “Within the context of the time, I believe it definitely has the potential to be transformative.”
Invoice Ford likened the launch to that of the Mannequin T.
“Again then, we have been the primary firm to carry cars to everyone,” he stated. “Now, we are the first firm to construct electrical vans for everyone — manner forward of anybody else.”
The corporate additionally plans to construct a second electrical pickup on the Blue Oval Metropolis advanced in Tennessee deliberate to open in 2024. Along with microchips, the automaker will want a gentle provide of batteries and uncooked supplies equivalent to lithium, though officers say they’ve secured sufficient to fulfill short-term objectives.
“They’ve an amazing product lineup that individuals actually appear to need,” Abuelsamid stated. “If they will get previous the provision chain points, they’re in all probability arrange fairly nicely.”