Ford’s inventory of electric vehicles, including the Mustang Mach-E and F-150 Lightning, is increasing, and one dealer said that the company has “a real problem on their hands based on the bets they’ve made,” and that their EV push may be “out of step.”
Ford’s EV ambitions are evidently outpacing customer demand for the vehicles, as its turn rate of Mustang Mach-E inventory dropped to 27.7 percent in Q2 2023, and it had twice as much inventory on the market compared to the same period last year.
Mustang Mach-E sales also fell 21 percent from the same period last year.
Although EV sales were up 12 percent through June, unsold inventory is as high as ever. With Ford planning to build 600,000 EVs this year through a $50 billion investment, the company expects to lose $3 billion more in the process. CEO Jim Farley has taken a “takes money to make money” attitude, especially as it continues to build a new manufacturing plant in West Tennessee.
Dealers have also been required to dish out at least $500,000 to sell EVs, with higher tiers costing more money.
But dealers are skeptical that it is the right path for Ford at the current time. One dealer told Business Insider that the company’s “got a real problem on their hands based on the bets they’ve made. I have Lightnings in stock and Mach-Es in stock. We’ve never had that before.”
The dealer thinks it is more of an issue with Ford having higher production than customers care to buy:
“I think production is exceeding demand. We are able to decline allocation… We didn’t decline any model except EVs.”
Other dealers had reportedly turned away some of its Mustang Mach-E allocations.
As for the Lightning, Ford detailed more than 200,000 reservations at the end of 2021. Another Ford dealer in the Midwest said Lightning orders are sitting in the order bank for extended periods, which is forcing them to go after other electrified options.
Meanwhile, when reservation holders’ orders arrive, dealers are having trouble converting them into new sales, especially when a single customer ordered several units, only aiming to take delivery of whichever one arrived first.
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