Ford prepares to resume F-150 Lightning shipments, drops prices on some models

DEARBORN,
Mich.
—


Ford
Motor
is
lowering
the
starting
prices
of
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
shipments
for
undisclosed
quality
issues
in
early
February.

The
biggest
price
decrease
is
on
the
pickup’s
mid-level
Flash
trim,
now
priced
$5,500
lower
at
$67,995.
That
was
followed
by
$2,500
off
Lariat
models,
now
priced
at
$74,995,
as
well
as
a
$2,000
reduction
for
XLT
models,
with
a
new
price
of
$62,995.

Prices
on
the
$54,995
entry-level
Pro
model
and
an
$84,995
top-end
Platinum
model
were
unchanged.

The
cost
reductions
are
the
latest
electric
vehicle
price
changes
for
the
broader
automotive
industry
amid
slower-than-expected
consumer
adoption.
Ford’s
cuts
come
three
months
after
it
adjusted
Lightning
prices,
including
increasing

some
model
prices.

“It’s
part
of
the
normal
response
to
both
where
the
market
place
is,
our
supply
and
where
our
inventory
sits
…
which
we
do
all
the
time,”
Ford
Chief
Operating
Officer
Kumar
Galhotra
told
reporters
on
the
sidelines
of
an
event
at
its
F-150
plant
in
Dearborn,
Michigan. “New
technology
like
electric
vehicles
takes
some
time
to
find
the
right
sweet
spot
and
the
balance.”

Galhotra
declined
to
comment
on
the
nature
of
the
problems
that
caused
the
stop-shipment
as
well
as
on
why
gas
and
diesel
versions
of
the
F-150
were
held
for
months
after
production
started.
He
broadly
said
engineers
constantly
write
software
onto
modules
for
the
vehicles,
which
are
all
connected
with
modems,
to
detect
any
anomalies
and
determine
defects.

“There
were
some
several
small
issues,”
Galhotra
said. “Once
we
find
the
solution
to
them,
we
fix
them
and
then
we
ship.
…
We
try
to
find
every
single
thing
that
we
can.”

In

media
materials
released
on
Thursday,
Ford
referred
to
what
it
called
an “unprecedented
truck
offensive,”
saying
it
assembled
144,000
F-150
full-size
and
Ranger
midsize
pickups
during
the
first
quarter
of
the
year
that
are
making
their
way
to
dealers
and
customers.
Roughly
92%
of

the
pickups
built
were
F-150
pickups.

Having
a
large
number
of
vehicles
is
not
a
good
thing
for
an
automaker.
It
means
more
costs
on
their
books
and
delayed
deliveries
to
dealers
and
customers.

Automotive
News

on
April
4
reported
that
Ford
has
revived
a
controversial
practice
of
goal-based
incentives
for
dealers
called
stair-step
programs
to
increase
sales
for
the
vehicles.
Since
February,
the
automaker,
which
did
not
immediately
respond
to
a
request
for
comment
on
the
program,
has
been
offering
retailers
escalating
cash
bonuses
if
they
reach
and
exceed
monthly
F-150
sales
targets,
Automotive
News
reported.

Ford
last
year
also
delayed
shipments
of
its
larger
Super
Duty
pickups,
which
are
siblings
to
the
F-150,
for
months
to
do
additional
quality
checks
and
inspections
following
issues
with
recent
launches
that
led
to
recalls
and
high
warranty
costs.

“We’re
going
to
prioritize
quality,
always.
These
are
very
complex
vehicles
with
complex
launches.
We
want
to
take
the
time
to
make
sure
everything
is
good,
everything
is
perfect,”
Galhotra
said. “And
when
we’re
satisfied
with
the
level
of
quality,
then
and
only
then
we’ll
start
shipping
to
our
customers.”

Ford
has
said
its
warranty
costs
contribute
to
a
cost
disadvantage
of
$7
billion
to
$8
billion
annually
compared
to
its
traditional
competitors.

Correction:
Automotive
News
released
its
report
on
Ford’s
goal-based
incentives
on
April
4.
A
previous
version
of
this
article
misstated
the
date.