Ford Motor Company (F) announced on Friday that it would be extending the production halt for its electric pickup truck, the F-150 Lightning, by an additional week. This comes after a battery fire during pre-delivery quality checks led to the halt. The company said that the supplier, SK, is now back to producing high-quality cells, but they need time to deliver them to the Lightning production line. The EV plant in Michigan will remain closed until the end of next week.
The news sent Ford stock down more than 1% on Friday as the markets reacted to the Federal Reserve’s preferred inflation measure coming in hotter-than-expected for January. The stock is down 31% in the last 12 months, compared to losses of around 8% for the S&P 500 Index (SPX).
The F-150 Lightning has been highly anticipated by electric vehicle enthusiasts and environmentalists alike. It is Ford’s first foray into the electric pickup truck market and is expected to compete directly with Tesla’s Cybertruck. The truck was initially expected to be released in the spring of 2021, but the production halt has caused a delay.
The fire that caused the halt is still being investigated. Ford has not released any details about the incident or the cause of the fire. However, they have stated that the F-150 Lightnings already delivered are affected by the production halt.
The delay has caused some concern among those who have already pre-ordered the truck. It is unclear how long the delay will be, or if it will have any effect on the delivery schedule. Ford has not released any information on how they plan to make up for the lost production time.
The halt in production also has implications for Ford’s bottom line. The company has invested heavily in the electric vehicle market and the F-150 Lightning was expected to be a major source of revenue for the company. The delay could result in lost profits and a decrease in market share.
The delay is a setback for Ford, but it is not the end of the story. The company is still committed to producing the F-150 Lightning and is working hard to get production back on track. In the meantime, electric vehicle enthusiasts and environmentalists will have to wait a little longer for the F-150 Lightning to hit the market.
