Ford and its F-150 pickup, the auto industry’s best-selling vehicle, has inspired pickup owners’ persistent loyalty to the brand. According to the JD Power 2020 American Car Brand Loyalty Study, Ford has a loyalty rate of 54.3%. Now as the automaker moves to electrify its fleet, it appears to be bringing in unused buyers.
Ford on Wednesday released its second-quarter 2021 earnings, which besides containing a windfall gain despite an ongoing chip shortage, revealed that its F-150 Lightning electric truck has generated 120,000 pre-orders since it was revealed in May. Ford reported revenue of $26.8 billion, slightly below expectations, and net income of $561 million in the second quarter.
To be clear, these are not warrants and do not reflect exactly how many of these vehicles Ford will sell. Customers can reserve one of these electric vehicles with a $100 refundable deposit.
However, it does provide some insight into the application.
Importantly, three-quarters of those unused orders come from unused customers at Ford, according to the earnings release. During the call on Wednesday, CEO Jim Farley also said that two out of five Lightning pre-orders will trade in an ICE pickup.
Not only does this potentially affect Ford’s sales, but it also proves the company’s recent forays into battery production. Automakers around the world engage in battery joint ventures with cell and chemistry companies, and Ford is no distinct. The company has a partnership with SK Innovation to manufacture battery cells on US soil and is setting up a battery research and development center in Michigan, part of its $30 billion investment in electrification.
The increase in sales could also aid Ford’s costly pledge to invest in upgrading the inline electrical engineering that allows Ford to more easily modernize coming electric vehicles and enable unused connectivity capabilities, according to Farley.
“And therefore when we Modern About Development Our Electrician vehicles, it’s more than more The basics From Just the investment in a the Tools And the engineering From the Electrician vehicle And it’s a elements And Farley said during the call. “He. She also includes a completely the unused approach NS NS engraved software And hardware systems. “
The F-150 Lightning comes with plenty of upgrades that make it attractive to Ford newcomers willing to pay more than the base price of $40,000. It has the alike torque and power as its gas counterpart, plus ADAS BlueCruise hands-free, a comprehensive infotainment unit and enough battery capacity to power your entire home in the event of a power outage.
Farley also said during the call that the unused Ford Maverick, a $20,000 plug-in hybrid pickup, already has about 80,000 orders. Hybrids are marketed to people who aren’t exactly pickup truck people, but would probably like to dip their toes into this utility suite.
Farley said, “Demand for our first round of packed-size electric vehicles has exceeded our most confident expectations. We are now working around the clock to burst the restrictions and increase our manufacturing capacity for these unused hot battery electric vehicles.”
According to the earnings report, the bank of retail orders sold to US customers for Mustang Mach-E electric cars and other Ford vehicles was seven times larger than it was at the alike point final year. With demand soaring, Farley said the business is “spring-loaded” to recover when semiconductor supplies stabilize.