Ford F-150 Lightning Reservations Hit 120,000+

Ford's Electric Shift Attracts New Customers

The Ford Motor Company and its flagship F-150 pickup truck have long been recognized for fostering strong brand loyalty among truck enthusiasts. The J.D. Power 2020 U.S. Automotive Brand Loyalty Study indicated a loyalty rate of 54.3% for Ford. As the company transitions towards an electrified vehicle lineup, a noticeable influx of new buyers is being observed.

Second Quarter Earnings and F-150 Lightning Demand

Ford announced its second quarter 2021 earnings on Wednesday, revealing a surprising profit despite the continuing global chip shortage. The report also highlighted that the F-150 Lightning, its all-electric pickup, has accumulated 120,000 preorders following its debut in May. Revenue for the quarter reached $26.8 billion, slightly under analyst expectations, with a net income of $561 million.

It’s important to note that these represent reservations, not firm orders, and don’t definitively indicate the final sales volume. Potential customers can secure a vehicle by submitting a fully refundable deposit of $100.

Nevertheless, this figure offers valuable insight into current market demand.

New Customer Acquisition

A significant portion – three-quarters – of these new reservations originate from customers previously not associated with the Ford brand, as stated in the earnings release. During Wednesday’s earnings call, CEO Jim Farley further revealed that two out of every five F-150 Lightning preorders represent customers intending to trade in their internal combustion engine (ICE) pickups.

This shift in customer base has implications for Ford’s sales strategy and also reinforces the company’s recent investments in battery production capabilities.

Investment in Battery Technology

Automakers globally are forming joint ventures with battery cell and chemistry specialists, and Ford is actively participating in this trend. The company has established a partnership with SK Innovation to manufacture battery cells within the United States. Furthermore, a battery research and development center is being constructed in Michigan, as part of a broader $30 billion investment in electrification initiatives.

Increased sales volume will also support Ford’s substantial investment in upgrading its embedded electrical architecture. This upgrade will facilitate easier software updates for future EVs and enable advanced connected vehicle features, according to Farley.

“Upgrading our electric vehicles is far more fundamental than simply investing in the tooling and engineering of the electric vehicle and its components and propulsion,” Farley explained during the call. “It also includes a completely new approach to an embedded software and hardware system.”

Attractive Features of the F-150 Lightning

The F-150 Lightning boasts numerous enhancements that appeal to prospective Ford customers, even at a price point exceeding $40,000. It delivers comparable torque and power to its gasoline-powered counterpart, alongside the hands-free ADAS BlueCruise system, a state-of-the-art infotainment system, and sufficient battery capacity to provide backup power for a home during outages.

Demand for the Ford Maverick

Farley also reported that the Ford Maverick, a compact hybrid pickup with a starting price of $20,000, has already garnered approximately 80,000 orders. This hybrid model is targeted towards individuals who may not traditionally consider themselves pickup truck buyers, but are interested in exploring the versatility of such a vehicle.

“The demand for our first round of high-volume EVs clearly has exceeded our most optimistic projections,” Farley stated. “We’re now working around the clock to break constraints and increase our manufacturing capacity for these red-hot new battery electric vehicles.”

Overall Demand and Future Outlook

The earnings report indicated that the combined U.S. customer-sold retail order bank for the electric Mustang Mach-E and other Ford vehicles was seven times larger than it was at the same time last year. With demand continuing to rise, Farley expressed confidence that the business is “spring loaded” for a significant recovery once semiconductor supplies become more stable.