Anyone skeptical about whether Ford Motor Co. (NYSE: F) can succeed under current management should note that it now has changed the price for its EV flagship F-150 Lightning four times. It is astonishing that a major manufacturer should have such trouble setting prices for a major vehicle launch. (Here is every major automaker’s plan to go electric.)
Reuters says, “The base variant of Ford’s electric F-150 truck now starts at $59,974, excluding shipping and taxes, up nearly 50% from its starting price when launched last year.” Ford simply cannot get right the price of the components that go into its vehicles.
Ford also has shaken customers’ trust as it suspended production of the Lightning because of battery problems.
Ford launched the Lighting into an increasingly crowded field. Within less than two years, Chevy, Ram and Tesla will release electric sport utility vehicles. Each company has the manufacturing capacity, balance sheet and brand strength to challenge Ford.
Ford recently admitted it has a quality problem, which it believes it can fix in two years. That is an eternity in the car business.
Ford also raised the price when an EV price war started. If anything, the companies in the race will bring down the manufacturer’s suggested retail price to get market share. Ford may have to drop the price of the Lightning after raising it. At least customers would get some benefit.
This is the latest fumble by Ford’s mediocre (or less than mediocre) management. It miscalculated expenses in one quarter last year. Ford’s stock has plunged. This has to anger the Ford family, which essentially has control of the company.
Investors and customers will only tolerate Ford’s problems for so long. The breach of trust with each will only widen.
If Ford wants to be in the first tier of EV companies, it has a very, very long way to go.
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