Ford F-150 Lightning to Feature Gas Generator, Shifts EV Strategy

Ford Adjusts Electric Vehicle Strategy, Halts F-150 Lightning Production

Ford Motor Company has announced the cessation of the all-electric F-150 Lightning’s production line. This decision is part of a significant restructuring of the company’s broader electric vehicle initiatives, as revealed on Monday.

New Hybrid Approach

Instead of continuing with the fully electric model, Ford will offer a version featuring an “extended range electric vehicle” configuration. This incorporates a gasoline generator capable of recharging the battery pack, extending the truck’s total range beyond 700 miles.

Details regarding the launch date and pricing of this new F-150 Lightning variant have not yet been disclosed by the manufacturer.

Financial Implications of the Shift

This strategic pivot will result in a substantial financial impact for Ford. The company anticipates a $19.5 billion charge to facilitate the reshaping of its EV business strategy.

A significant portion of this, including an $8.5 billion write-down of existing EV assets, will be reflected in the fourth-quarter financial reports. Furthermore, Ford projects $5.5 billion in cash charges to be incurred through 2027.

Impact on Facilities and Future Projects

The restructuring will affect multiple manufacturing facilities and the workforce. Consequently, Ford’s next-generation all-electric truck project, internally designated “T3,” has been discontinued.

The T3 was envisioned as a ground-up design, differing from the F-150 Lightning, which integrated electric vehicle technology into an existing gasoline-powered vehicle platform. Ford has also confirmed the abandonment of plans for a next-generation commercial van, though the current E-Transit model will remain in production.

Reasons for the Change

“Ford has determined to discontinue production of certain larger electric vehicles where the economic justification has diminished,” the company stated. “This is due to factors including weaker-than-anticipated demand, escalating costs, and shifts in the regulatory landscape.”

Future EV Plans Remain

Despite these adjustments, Ford remains committed to its electric vehicle future. The company is still planning to launch a mid-sized, all-electric pickup truck in 2027.

The platform underpinning this truck – developed through a specialized program led by former Tesla executives Doug Field and Alan Clarke – will also serve as the foundation for other upcoming Ford vehicles.

Battery Technology Advancements

Ford is on schedule to commence production of more affordable lithium iron phosphate (LFP) batteries in 2026. These batteries, to be manufactured at the BlueOval Battery Park Michigan facility in Marshall, will utilize technology licensed from CATL of China, and will be implemented in the mid-sized truck.

Strategic Reprioritization

“We are redirecting investments away from large EVs with uncertain profitability towards areas offering higher returns,” explained Ford president Andrew Frick during a conference call. “This includes hybrid trucks and vans, extended-range electric vehicles, more accessible EVs, and emerging opportunities like energy storage solutions.”

F-150 Lightning’s Initial Promise

Ford initially unveiled the F-150 Lightning in 2021, following the announcement of its all-electric Mustang, the Mach-E, two years prior. The company initially projected a starting price of $40,000 for the Lightning, positioning it as a key product in its $22 billion investment in electric vehicles.

Market Challenges

However, similar to other large electric trucks, the F-150 Lightning encountered challenges in the U.S. market. The advertised $40,000 price point was largely unavailable to individual buyers, being reserved for fleet customers.

Over the past two years, Ford’s sales averaged approximately 7,000 Lightnings per quarter, peaking at nearly 11,000 units in the fourth quarter of 2024.

External Factors Influencing the EV Market

Since the introduction of the F-150 Lightning, the EV market has experienced significant headwinds. Tesla initiated a substantial price war to address declining sales, impacting the profit margins of established automakers. Additionally, the political climate, including the reelection of Donald Trump and Republican control of Congress, has led to a rollback of policies designed to promote electric vehicle adoption.