Ford (F) might be throwing in the towel on its electric pickup truck, as lackluster demand and an end to government tax credits could spell the end to the Ford Lightning.
According to sources cited by The Wall Street Journal, Ford (F) executives are in “active discussions” to end production of the vehicle once praised as Ford’s (F) Model T moment.
But plagued by recalls, software glitches, and reduced range when towing and during cold weather, the Lightning consistently lost money for Ford given the high manufacturing costs and incentives necessary to sell the vehicle in a highly competitive market.
To match supply with lukewarm demand, Ford (F) slashed production from over 166,000 per year to less than a quarter of that by 2024. By October, Ford (F) moved just 1,543 F-150 Lightnings—down more than 17% year over year—compared with 68,000 gas-powered F-Series trucks.
The decision to eliminate the Lightning from its lineup can also be attributed to the huge losses Ford (F) is taking from its EV division. In the company’s third quarter results, the EV unit reported an EBIT loss of $1.4B, while its Ford Blue and Pro segments earned $1.5B and $2.0B, respectively.
While a decision hasn’t been made on the fate of the Lightning, last month Ford (F) said it would idle the Rouge Electric Vehicle Center in Dearborn that produces the truck until November 24 due to an aluminum supplier fire. This action is seen as a way for Ford (F) to reassess its EV production strategy and shift to more profitable hybrid and ICE trucks.