Ford Struggling with EV Stock Surplus

F-150 Lightning Up, Mustang Mach-e Down in 2023 Sales

An increasingly troublesome situation can be observed among Ford dealers concerning the rise of Tesla vehicle inventories. As one East Coast dealer attested, their supply is not in line with customer demand, resulting in severe overstocking for Ford EVs.

The car dealer commented to Insider, under the requirement of anonymity in order to protect them from potential professional repercussions, that Ford has got a formidable challenge ahead due to the risks it has taken. They stated that stock of its F-150 Lightning and Mustang Mach-e vehicles hadn’t accumulated like they had in the past.

This certain merchant is not alone in refusing fresh apportions of Ford’s electric vehicles. Other Ford retailers whom they had conversations with likewise declined their freshly-distributed Mustang Mach-e portions.

One merchant revealed that prolonged shipping times might be adversely impacting sales, since numerous orders don’t usually result in actual shipments. It’s likely that prospective F-150 Lightning patrons have a lot of EV bookings for various models, and they buy the first one that is obtainable.

We have recently reported that Ford had a 56-day stockpile of inventory for their electric truck, involving vehicles in transit. This is the first instance whereby the organization has provided discounts to make their electric automobiles more attractive. People from chosen areas in the US are now able to acquire a saving of up to $2,500 on the F-150 Lightning, along with federal as well as state subsidies.

The sales figures delivered a contradictory message in terms of Ford’s electric car success. The Detroit vehicle producer sold around 23,000 battery-powered cars during the initial half of 2023, which reflected a 12% amplification compared to the same time frame the earlier year. Purchase of F-150 Lightning surged 281 percent; however, Mustang Mach-e and E-Transit sale figures slipped by 21% and 3% respectively.

Concerning the rate of turnover – the proportion of electric vehicles sold from existing stock – Ford retailers disposed of 86.4 percent of their Mustang Mach-E supplies in the first thirty days of Q2 2022, yet this number declined to 27.7 percent during the same period next year, per Cloud Theory data accessed by Insider.

The company is investing billions of dollars in heightening the output of electric vehicles in North America. Output of its EV truck is estimated to surge threefold this year at the Rouge Electric Vehicle Center based in Michigan. Additionally, an expansion in the production of E-transit, the nation’s most popular electric van, is planned for 2022 at the Kansas City Assembly Plant.

The newly created Mustang Mach-e, assembled in the Cuautitlan factory located in Mexico and also the Changan Ford industrial complex situated in Chongqing, China, is forecasted to attain its worldwide yearly production aim of 210,000 models before the close of 2023.

What are your sentiments concerning the burgeoning stock amounts? Are purchasers adequately ready for Ford electric vehicles? Share your contemplations in the comment field below.

Source: Insider


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