The F-150 Lightning on display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC
DEARBORN, Mich. – Ford engine is lowering starting prices on some all-electric F-150 Lightning pickup trucks as it prepares to resume shipping the vehicles after quality issues.
The included models are expected to ship later this month for between $2,000 and $5,500 less than before the automaker halted deliveries over undisclosed quality issues in early February.
The biggest price drop is for the mid-level “Flash” version of the pickup, which is now priced $5,500 lower at $67,995. This was followed by a $2,500 reduction on Lariat models, now priced at $74,995, as well as a $2,000 reduction on XLT models, with a new price of $62,995.
Prices for the entry-level Pro model at $54,995 and the top-end Platinum model at $84,995 remained unchanged.
The cost cuts are the latest changes to electric vehicle pricing for the entire auto industry amid slower-than-expected adoption by consumers. Ford’s cuts come three months after it adjusted prices for the Lightning, including raising prices on some models.
“This is part of the normal response to both the market situation, our supply and where our stocks are… which we do all the time,” said Kumar Galhotra, director of the Ford’s operations, to journalists on the sidelines of an event at Ford headquarters. F-150 factory in Dearborn, Michigan. “New technologies, like electric vehicles, take time to find the right balance.”
The new Ford F-150 truck moves through the assembly line at the Ford Dearborn plant April 11, 2024 in Dearborn, Michigan.
Bill Pugliano | Getty Images
Galhotra declined to comment on the nature of the problems that caused the halt in deliveries as well as why gasoline and diesel versions of the F-150 were held on for months after production began. He basically explained that engineers are constantly writing software on vehicle modules, which are all connected with modems, to detect any anomalies and determine faults.
“There were several small problems,” Galhotra said. “Once we figure it out, we fix them, then we ship… We try to find everything we can.”
Ford on Thursday called the move an “unprecedented truck offensive,” and said it assembled 144,000 F-150 full-size and mid-size Ranger pickups in the first quarter of the year, which will then be shipped to dealers and customers. About 92% of the pickups built were F-150 pickups.
Having a large number of vehicles is not a good thing for a car manufacturer. This means higher costs on their books and delayed deliveries to dealers and customers.
Automotive News reported last month that Ford had revived a controversial practice of goal-based incentives for dealers called tier programs to increase vehicle sales. The automaker, which did not immediately respond to comments on the program, has been offering retailers escalating cash bonuses since February if they meet and exceed monthly F-150 sales goals, Automotive News reported.
Last year, Ford also delayed shipments of its larger Super Duty pickups, which are the F-150’s siblings, for months to conduct additional quality checks and inspections following problems occurred in recent launches that resulted in recalls and high warranty costs.
“We’re always going to prioritize quality. These are very complex vehicles with complex launches. We want to take the time to make sure everything is right, everything is perfect,” he said. “And when we are satisfied with the level of quality, then and only then will we start shipping to our customers.”
Ford said its warranty costs contribute to a financial disadvantage of $7 billion to $8 billion per year compared to its traditional competitors.
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