Photo: Ford
Usually, EV makers start selling the most expensive version of their vehicles to maximize profits and compensate for the low production pace. Ford, on the other hand, wasted no time in delivering even the cheapest F-150 Lightning trims to commercial buyers, despite the limited production. What gives?
Ford F-150 Lightning started deliveries a week ago, more than a year since it was unveiled. A lot of people are waiting for the electric truck to be delivered, and Ford had to stop taking reservations until production would catch up with the demand. But now that things started moving, it became apparent that Ford has a different strategy than other EV makers, including its peers from General Motors. Specifically, Ford does not seem to prioritize delivery of the more expensive versions of its electric truck, opting for a balanced mix instead.
Both GM and Rivian started their electric truck sales with the most expensive versions of the GMC Hummer EV and R1T, respectively. This makes sense, as it allows a carmaker to maximize profits and ease cash flow when the production is still in the early phases. When there is only a limited number of EVs that you can build, it’s wise to start with the most expensive ones, so that you can free money for future production expansion.
Ford being an established carmaker, is not cash strapped, so it can afford whatever sales strategy it can imagine. In the case of the F-150 Lightning, the Dearborn carmaker opted to serve the commercial buyers with cheap Pro trims right from the beginning. In fact, one in every five trucks coming off the production line is the fleet-focused Pro trim.
This apparently has to do with Ford trying to steal the limelight from General Motors. With Chevrolet Silverado EV still far from delivery, Ford has a chance to command a very lucrative fleet market and intends to do so, even if this means losing some profits. This was confirmed for Automotive News by Darren Palmer, Ford’s vice president of electric vehicle programs.
“Fleets we will look after; they are the core of our business,” Palmer said. “Even though we could sell more vehicles, more expensive, it's not about the short-term profit. We launched with them right at the beginning and we’re giving them 20 percent all through.”
According to Palmer, Ford has built roughly 2,800 Lightnings in less than three weeks of production. Most of them are Lariat trims, which start at $69,269 including destination charges. Indeed, the F-150 Lightning that Ford gave away in The Ellen Show was a Lariat. Ford also sold out the 2022 model year in the first sales waves and the next reservation holders will get the 2023 Lightning when it will become available.
“We've done about three or four waves now, and that was the end of the 2022 model year,” Palmer said. “We saw a really, really high conversion. At the moment it would be meaningless if I said the number because it wouldn't include those who held on [for the 2023 model year]. But it's pretty good.”
There’s no word about the production estimates for this year, but we know that Ford aims for a 150,000 annual production rate in 2023. Ford expects everything to fold into place since the electric truck shares most parts with the ICE version and it is also considered the highest priority when accounting for electronic components.
Both GM and Rivian started their electric truck sales with the most expensive versions of the GMC Hummer EV and R1T, respectively. This makes sense, as it allows a carmaker to maximize profits and ease cash flow when the production is still in the early phases. When there is only a limited number of EVs that you can build, it’s wise to start with the most expensive ones, so that you can free money for future production expansion.
Ford being an established carmaker, is not cash strapped, so it can afford whatever sales strategy it can imagine. In the case of the F-150 Lightning, the Dearborn carmaker opted to serve the commercial buyers with cheap Pro trims right from the beginning. In fact, one in every five trucks coming off the production line is the fleet-focused Pro trim.
This apparently has to do with Ford trying to steal the limelight from General Motors. With Chevrolet Silverado EV still far from delivery, Ford has a chance to command a very lucrative fleet market and intends to do so, even if this means losing some profits. This was confirmed for Automotive News by Darren Palmer, Ford’s vice president of electric vehicle programs.
“Fleets we will look after; they are the core of our business,” Palmer said. “Even though we could sell more vehicles, more expensive, it's not about the short-term profit. We launched with them right at the beginning and we’re giving them 20 percent all through.”
According to Palmer, Ford has built roughly 2,800 Lightnings in less than three weeks of production. Most of them are Lariat trims, which start at $69,269 including destination charges. Indeed, the F-150 Lightning that Ford gave away in The Ellen Show was a Lariat. Ford also sold out the 2022 model year in the first sales waves and the next reservation holders will get the 2023 Lightning when it will become available.
“We've done about three or four waves now, and that was the end of the 2022 model year,” Palmer said. “We saw a really, really high conversion. At the moment it would be meaningless if I said the number because it wouldn't include those who held on [for the 2023 model year]. But it's pretty good.”
There’s no word about the production estimates for this year, but we know that Ford aims for a 150,000 annual production rate in 2023. Ford expects everything to fold into place since the electric truck shares most parts with the ICE version and it is also considered the highest priority when accounting for electronic components.
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