Ford has halted shipments of its 2024 F-150 Lightning EV pickup and only just started shipping its brand new 2024 F-150 gas-powered truck after a multi-week delay, due to quality checks. A delay affecting Ford’s high-profit F-150 sales and more possible EV troubles could potentially impact Ford’s first quarter performance.
Automotive News first reported that a 2024 F-150 Lightning “stop-ship” order went into effect Feb. 9 due to an undisclosed quality issue and that “hundreds, if not thousands” of gas-powered 2024 F-150 trucks have been piling up in Ford holding lots since production began in December, before deliveries began late last week.
“We started shipping the first newly designed F-150 pickups to dealers this week. MY24 Lightnings started shipping last month,” a Ford spokesperson told Yahoo Finance. “We expect to ramp up shipments in the coming weeks as we complete thorough launch quality checks to ensure these new F-150s meet our high standards and delight customers.”
When asked to confirm whether MY24 Lightnings were still under a “stop-ship” order, a Ford spokesperson only said, “We will ramp shipments once quality checks are completed,” and did not address whether the “stop-ship” had been lifted. Ford did confirm that F-150 trim levels, such as the Lariat, Limited, and Platinum, are delayed.
With regard to quality issues holding up F-150 gas and hybrid-powered deliveries, the same Ford spokesperson said Ford had “started shipping F-150 XL and STX units to customers, and will continue to ramp up shipments to include the other series as they pass our quality checks.”
Ford updated the F-150 product line for the 2024 model year with exterior styling enhancements and an updated interior, among other things. Ford is also prioritizing pushing out more hybrid F-150s, which were popular among its buyers, and has been continually updating the Lightning EV to improve its feature set and cost profile.
The F-150 pickup is the bestselling vehicle in America, with Ford selling over 700,000 trucks in the US, up nearly 15% from a year ago. F-150 Lightning sales topped 24K units last year, up 54% from 2022.
While first shipments of F-150 gasoline and Lighting EV pickups are still in line with Ford’s “early 2024” sales timeline, Automotive News reported some F-150s have been sitting in holding lots since late December, with one commercial customer telling the publication that the delivery date for nearly 100 trucks has been delayed by eight weeks and that they have received “essentially no communication from Ford.”
Ford CEO Jim Farley has said time and time again that Ford needs to get past quality issues. Ford once again had the most recalls of any manufacturer in the U.S. last year. While the automaker says it is working on fixing those operational issues, CFO John Lawler said during the company’s Q4 earnings call that warranty costs will still be equivalent to last year, although there are some “green shoots” seen in quality improvements.
For Ford, a strong rollout of its F-150 line and cost reductions in the warranty and recall area are crucial for the automaker to meet its 2024 guidance. Earlier this month Ford projected 2024 adjusted EBIT of $10 billion to $12 billion — below Ford’s pre-UAW strike 2023 profit outlook of $11 billion to $12 billion, but higher than estimates of $9.24 billion.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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Source: www.autoblog.com