Ford F-150 Lightning EV production halted until end of next week

Ford CEO Jim Farley pats a Ford F-150 Lightning truck in advance of announcing at a push meeting that Ford Motor Company will be partnering with the world’s largest battery firm, a China-based firm referred to as Present-day Amperex Technology, to create an electric powered-vehicle battery plant in Marshall, Michigan, on February 13, 2023 in Romulus, Michigan.

Bill Pugliano | Getty Photographs Information | Getty Illustrations or photos

DETROIT – Ford Motor expects creation of its electrical F-150 Lightning pickup to be down through at minimum the finish of following 7 days to tackle a opportunity battery concern, the automaker mentioned Wednesday.

The current timing arrives a day soon after Ford verified production of the very viewed vehicle had been suspended at the beginning of last week adhering to a person vehicle exhibiting a difficulty with the battery during a pre-supply quality inspection.

associated investing news

CNBC Investing Club

Ford reported Wednesday it believes engineers have found the root lead to of the problem. The investigation into the dilemma is predicted to be concluded by the finish of up coming 7 days, followed by adjustments to the truck’s battery generation method that “could get a number of weeks.”

A Ford spokeswoman declined to disclose more specifics of the difficulty, which led to the output halt as very well as a halt-shipment on by now-manufactured trucks.

The battery provider for the truck is South Korea-dependent SK On, a spinoff of SK Innovation, which the Detroit automaker introduced a joint enterprise with last 12 months to create battery production facilities in the U.S.

Ford reported it is not aware of any incidents of this challenge in motor vehicles that have currently been sent to consumers and dealers. Shops can proceed to promote automobiles that they may previously have in inventory.

The F-150 Lightning is remaining carefully viewed by buyers, as it is really the to start with mainstream electrical pickup truck on the market and a key start for Ford.

The battery difficulty adds to ongoing “execution challenges” in-depth to investors before this thirty day period by Ford CEO Jim Farley that crippled the automaker’s fourth-quarter earnings.

Farley reiterated Wednesday that the automaker desires to do greater operationally to be additional worthwhile and convey margins in-line with opponents. He mentioned Ford is much less financially rewarding than its legacy friends because it has a value downside of in between $7 billion and $8 billion.

“We can reduce the cost, we can reduce men and women, we can do that really speedily and we’ll do what ever we have to have to,” Farley stated throughout a Wolfe Exploration conference. “The actuality is if you never adjust the efficiency of engineering, offer chain and manufacturing, the fundamental get the job done statement, the way persons do the job, the performance of that it’s going to expand again

Farley afterwards additional, “This is really about redesigning what we do in the 120-calendar year-old part of the enterprise.”