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Ford Raises Prices of F-150 Lightning Electric Truck By Thousands of Dollars, Citing Rising Material Costs. (nytimes.com) 258

Ford Motor on Tuesday became the latest automaker to raise the price of electric vehicles when it significantly increased prices of its popular F-150 Lightning because of rising materials costs. From a report: The company began making the Lightning in April and had sold more than 4,400 through the end of July. Ford has taken reservations for more than 200,000, and the higher prices will go into effect for the 2023 model year. Ford said it was increasing the starting prices of the truck by $6,000 to $8,500 for newly ordered vehicles. After the increase, the truck will cost from $46,974 for a base model to $96,874 for a Platinum version with an extended-range battery pack.

The increases do not affect customers who have already placed orders and are waiting for their trucks. Reservations give customers a spot in line to place an order to buy a truck. Ford stopped taking orders because of strong demand but said it would resume doing so on Thursday, when the new prices go into effect. "We've announced pricing ahead of reopening order banks so our reservation holders can make an informed decision around ordering a Lightning," said Marin Gjaja, chief customer officer for Ford's electric vehicle division, known as Model e, in a statement.

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Ford Raises Prices of F-150 Lightning Electric Truck By Thousands of Dollars, Citing Rising Material Costs.

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  • Supply and Demand (Score:5, Insightful)

    by rgmoore ( 133276 ) <glandauer@charter.net> on Tuesday August 09, 2022 @04:54PM (#62775714) Homepage

    Material costs are just an excuse. They're raising the price because they can. Demand is high and supply is low, so they know they can raise the price a lot without hurting sales. When competition shows up and starts undercutting their new, higher price, they'll discover some reason why they can lower it again.

    • by Luckyo ( 1726890 )

      Asking price is still too low in fact for what it's going to cost in the near future. Russia was key in at least four inelastic supply chains for EV manufacturing, whereas it was only key for one when it comes to manufacturing and usage of ICEVs. With EVs, you can't MAKE them without relying on things that have significant amount sourced in Russia. With ICEV, you can at least make them. With EVs, you can't make enough of them, because that is where supply chain shortages are hitting.

      Handy chart:
      https://zeih [zeihan.com]

      • by MightyMartian ( 840721 ) on Tuesday August 09, 2022 @05:12PM (#62775812) Journal

        It's almost like there isn't this country immediately to the north of the US that has an estimated 15 million tons of reserves.

        • The country who wants a big pipeline to Texas so that it can sell the gasoline to China. You think that pipeline was to help out the average American?

          • Even if that were so? What makes you think they're not buying just as much from Texas refineries now? There's nothing stopping them from paying for the product, you know. They're just having to bring it up there using tanker trucks or rail (or some combination thereof).

            • True, but the rationale the politicians gave for keystone xl pipeline hase was to reduce US dependency on foreign oil (which is weird, because if true does that mean they think Canada is a US state?).

              • https://en.wikipedia.org/wiki/... [wikipedia.org]

                The proposed Keystone XL pipeline would start from the same area in Alberta, Canada, as the Phase 1 pipeline.[28] The Canadian section would consist of 526 kilometres (327 mi) of new pipeline.[41] It would enter the United States at Morgan, Montana, and travel through Baker, Montana, where American-produced oil would be added to the pipeline ; then it would travel through South Dakota and Nebraska, where it would join the existing Keystone pipelines at Steele City, Nebraska.[8] This phase generated the greatest controversy because of its routing over the Sandhills in Nebraska.[105][106][107]

                Keystone XL would reduce dependence on foreign oil. Because we aren't going to switch over to electric cars overnight then it may be a good idea to complete the pipeline so we are at least burning petroleum from a reliable supply instead of at risk of disruption because Russia decided to bomb a few more seaports and oil tankers.

                Congress seems to believe that by burning oil from outside the USA that there is less CO2 emitted. Pretty sure that by putting the oil on a tanker

      • Re:Supply and Demand (Score:5, Informative)

        by Smidge204 ( 605297 ) on Tuesday August 09, 2022 @05:33PM (#62775872) Journal

        Counterpoint: Once you have the EV, the price is much more stable as the cost of electricity is well insulated from fluctuations in fossil energy, and in fact can be completely decoupled from those fluctuations.

        From the report you can download from this page [iea.org]:

        The rapid increase in EV sales during the pandemic tested the resilience of battery supply chains, and Russiaâ(TM)s war in Ukraine has further exacerbated matters with prices of raw materials such as cobalt, lithium and nickel surging. In May 2022, lithium prices were more than seven times higher than in early 2021 due to unprecedented battery demand and a lack of sufficient investment in new supply capacity. Meanwhile, Russia supplies 20% of global high-purity nickel. Average battery prices fell by 6% to USD 132 per kilowatt-hour in 2021, a slower decline than the 13% drop the previous year. If metal prices in 2022 remain as high as in the first quarter, battery packs would become 15% more expensive than they were in 2021, all else being equal. However, the relative competitiveness of EVs remains unaffected given the current oil price environment.

        Note that last sentence there.

        As for Russian nickel, we only need to look at how EV battery manufacturers are reacting to cobalt - they simply use less of it. Understanding that both cobalt and nickel are supply chain constraints and expensive, which are hurdles to expanding production and reducing costs, battery technology is evolving accordingly. The Lithuim-Iron-Phosphate packs that Tesla has been rolling out in select models use neither cobalt nor nickel. Sure they have slightly less energy and power density, but they're a better proposition for manufacturers in the long term. The linked report also has additional information on this and other strategies to manage supply chains...

        So fuck Russian nickel supplies - if they want to play games, EVs can and will do without it, and it's a field absolutely ripe for innovation to boot. Good luck buying gasoline if anyone decides to fuck with the petroleum market again though! I'll take an EV that's hard to build but sustainable to operate over a million ICE vehicles that are easy to build but can't be used because there's no fuel. Hell, if cars become harder to get maybe we'll finally see some investments in mass transit...
        =Smidge=

        • The Lithuim-Iron-Phosphate packs that Tesla has been rolling out

          That all sounds great until you realize that lithium is in short supply also.

          There is no material you can think of used in most EVs, that is at this point not in a long term structural deficit, and building a truly large number of EVs will make that shortage far worse.

          Once you have the EV, the price is much more stable as the cost of electricity is well insulated from fluctuations in fossil energy

          *laughs in Californian*

          Or of course there is th [newssmashers.com]

          • > You think electric prices will "remain stable" if you dump any kind of sizable electric car fleet into the market?

            An entire country in the process of economic collapse aside, just want to point out that the price hike in Sri Lanka is inversely proportional to how much you use; so oddly if you happen to own an EV in Sri Lanka your electricity bills would go up less than someone who doesn't. But let's say you're in the lower, more screwed bracket; you're now paying LKR 8.0 per kwh, or about LKR 1.7/km fo

      • Pretty useless chart actually. It doesn't include the material the cars are made of, incidentally a material that has dramatically increased in price in the commodities market.

        • by Luckyo ( 1726890 )

          Steel supply and demand are elastic because of massive oversupply that came to exist over last two decades in China. The main reason it's going up is because Chinese ports got closed again in recent past.

          It'll go down as they reopen on world markets. Tariff impact on certain markets is a different beast however.

      • Don't forget, if gas taxes go up by 5 cents, the refineries raise the price by 15, hoping no one notices. So they'll blame Russia or OPEC but they're quite happy to make a profit off of the perception that prices are going up.

    • I wish the competition part was true in the short-term. What makes you think other manufacturers won't say "hey that's a great idea... let's raise our prices too"? They all stand to make more profit, and can create a new floor for vehicle prices. Sure it's not supposed to happen, and sure car manufacturers are not totally an oligopoly, but in the short-term, supply isn't flexible so they could rake in the cash for a few years...
      • by rgmoore ( 133276 )

        Anyone who has tried to buy a car recently can tell you the prices have gone up substantially. This has come as a mix of car companies not offering the kinds of discounts they usually offer and dealers adding surcharges. I was helping a friend shop for a car last year, and every dealer was adding something like $5,000 in added charges. This has also driven up the prices of late model used cars. It's a little unusual for a car company to just announce they're raising prices, but for a hot new model it's

        • by EvilSS ( 557649 )
          It's not just the lightning either, all of the F150's got price increases for 2023. Hell they also got prices increased multiple times in this year on the 2022s. Just the Lightning's were pretty substantial by comparison. But considering dealers have been marking them up $30,000-$70,000 over sticker, not sure anyone will notice.
      • What makes you think other manufacturers won't say "hey that's a great idea... let's raise our prices too"?

        Tesla already has. Twice so far [theverge.com] this year.

        What's funny is hearing these companies claim inflation is to blame for rising prices when them raising prices is the reason for the inflation in the first place.

        • What's funny is hearing these companies claim inflation is to blame for rising prices

          What's funny is you not realizing inflation comes partly from expansion of monetary supply, and partly from fundamental shortages because supposedly "green" people spent decades trying to block new of continued use of any mine that would actually produce the materials needed to build "green" vehicles.

        • by AmiMoJo ( 196126 )

          I'd have more respect for their inflation claims if they gave workers at least an inflationary pay increase this year.

    • by steveha ( 103154 )

      Material costs are just an excuse. They're raising the price because they can.

      Maybe. Certainly that's why Tesla raised prices like a half dozen times... Tesla was able to, and they did. Although you can argue that Tesla's action also made sense because the order backlog was over a year. And Elon Musk did say that Tesla's price increases were a pro-active action to deal with increased materials costs.

      But the CEO of Ford has commented publicly that when they first started making the electric F-150, it was

    • They're also raising the price because they know the government will subsidize buyers of these things and make the higher price easier to swallow. It's just like university tuition.

    • Material costs are just an excuse.

      Good choice of words. An excuse is "a reason or explanation given to justify something". You think you said something bad, but "excuses" are often very legitimate and well reasoned justification.

      Incidentally you know what the Ford F-150 is made of? Or what windings of motors are made of? Trick question, just about any material you name has gone up significantly on the commodities market, and you'd be a special kind of silly to think that manufacturers are going to simply start selling low margin products at

    • Yep! I just recently bought a Bronco Sport "Badlands edition". I was initially kind of interested in the full-size Bronco because I owned a Wrangler Rubicon in the past and it was a fun vehicle to modify and take off-road once in a while. But woah! Ford is absolutely gouging on the prices on all of the full size Broncos because they know they're so popular and in short supply. There's a photo circulating the net of a California area dealer who added $30,000 of dealer markup to the MSRP sticker price, PLUS

  • by Smidge204 ( 605297 ) on Tuesday August 09, 2022 @04:54PM (#62775718) Journal

    In an interview [youtube.com], Ford VP of Electric Vehicle Operations Darren Palmer basically said (paraphrasing) "We did our market research and planned production based on what we thought demand would be - and nobody expected it to be this popular." (Skip to ~18m45s)

    So yeah it makes sense to increase the price. Even if the material costs are higher, you better believe they are improving their margins as well.
    =Smidge=

  • by jmccue ( 834797 ) on Tuesday August 09, 2022 @04:55PM (#62775726) Homepage

    That did not take long, as soon as the US Senate passes a bill to give out 4,000 USD tax breaks on purchasing Electric vehicles, Ford raises the price of their EV by thousands.

    If someone believes their press release, I have a very nice historical bridge to sell you.

    • Sounds good except inflation is hitting everything, not just what is affected by the new law.
  • It has no right to be that popular, except for bragging rights. It's only good for unladen around-town driving where you charge at home. In towing tests, even with the most expensive model with the best tow package and battery, it advertises 150 miles but gets 85, then takes 45 minutes to charge from 5% to 75%. https://www.youtube.com/watch?... [youtube.com]

    • Re:Show truck (Score:5, Informative)

      by WankerWeasel ( 875277 ) on Tuesday August 09, 2022 @05:07PM (#62775784)
      That meets the needs of most businesses looking to haul around. Most just haul a trailer in town and that'll get them through the day. Ford has never claimed this truck is for everyone. Clearly there will be time before electric vehicles are able to meet all the various needs of various industry but they have to start somewhere. And for the everyday buyer, this thing is beyond what they need. Remember that most drive less than 50 miles a day and don't haul a thing.
    • by Fly Swatter ( 30498 ) on Tuesday August 09, 2022 @05:11PM (#62775800) Homepage
      If you tow regularly or daily haul with a full bed 200 miles, then the Lightning is not for you, but neither is a Prius. So many people hate on the truck just because it doesn't fit their particular use case.

      The use case that the thing excels at is simply not for you, no reason to hate on it. Or are you just mad because it doesn't fit your use case and you secretly wanted one?
      • Re: (Score:2, Informative)

        I think it's because most people with full size trucks use them to haul heavy things and sometimes haul heavy things long distances. If they wanted something that was more "fitting" as an EV enthusiast vehicle with light/medium duty towing/hauling, they should have built a Ford Mavrick EV or Ranger.
        • by ArchieBunker ( 132337 ) on Tuesday August 09, 2022 @05:30PM (#62775856)

          I think it's because most people with full size trucks use them to haul heavy things and sometimes haul heavy things long distances.

          The majority of large trucks I see are pristine and shiny sitting in parking lots. The beds don’t have a scratch on them. The only people hauling shit regularly are landscapers.

          • Ditto. I think it's John Mulaney who has a bit about it. Asked his brother to haul a tree. Brother declined as it would get the bed dirty.

        • by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Tuesday August 09, 2022 @05:33PM (#62775874) Homepage Journal

          I think it's because most people with full size trucks use them to haul heavy things and sometimes haul heavy things long distances.

          Historically, a half ton pickup won't do those jobs. The only reason the F150 has much payload capacity (and it's quite a bit actually) is that it's got an Aluminum body. That a half-ton EV won't do these jobs is really not a surprise.

          Also, you're just plain wrong. Most full sized pickups are never used to haul or tow anything [thedrive.com], let alone heavy. 75% of truck owners use their truck primarily for commuting.

          • I skimmed that article but didn't see a source for the claim. Do you happen to know the methodology that was used to reach your claim that "Most full sized pickups are never used to haul or tow anything"?

            I only know one person with a pickup truck and he tows a boat several times per week. I assume most people with boats don't have the freedom to take their boat or camper out that often but still like to be able to take it out without having to rent a tow vehicle.

            If somebody tows their boat once or twice per

        • The intention was never to be an enthusiast vehicle. This is a stepping stone to the EV transition.

          It is most likely the same group that complains that the Maverick isn't a truck. It doesn't fit their need but they are compelled to tell everyone it is not a truck and they will never buy one. OK, So don't buy one.
          • Stepping stone for the EV transition you say. Uuuugghh. See, that right there is the kind of vision-free thinking that’s left the major US car manufacturers in the dust of the better players. Way too many lazy, fat, cigar-smoking US carmaker executives having way too many 3-martini lunches.

            So, the traditional US carmakers are just now, kinda, sorta, mmaybe starting to think about a “stepping stone” to EVs by building. 4500 lightnings. Oouf Meanwhile Tesla builds, and sells, that many E
            • We are talking trucks here, not sedans.

              Did you see the numbers Ford plans to produce for the 2023 model year? 150,000. I said stepping stone, but this is really more successful than they had hoped. It is essentially a better driving F-150 and is compatible with options and aftermarket components of the existing gas models. Smooth transitions are a thing.

              They have a skateboard design in the works, but how are they late to market? There is only one other EV truck model currently available for purchase.
              • I hope you're right. Sincerely, I truly hope that Ford hasn't missed the boat. But I'm skeptical. I'm skeptical of that 150,000 number. What new factories are nearly done being built? Which currently-operating F150 production lines are, at this very moment, down for several months of re-tooling? Where are the 10,000 people getting retrained to manufacture the Lightning? If this isn't happening, they won't be building 150,000 Lightnings in 2023. It took Musk years to build out Tesla capacity. I sincerely ho
            • So, the traditional US carmakers are just now, kinda, sorta, mmaybe starting to think about a “stepping stone” to EVs by building. 4500 lightnings. Oouf Meanwhile Tesla builds, and sells, that many EVs in less than 24 hours.

              Ford sells a million F-150s every year, and they make a substantial profit on them. I have no doubt they will continue to sell a million F-150s every year for a long time to come no matter what Tesla does. Some of those F-150s will be electric going forward, and they will make less profit on those.

              It is a very smart approach. They want to hedge their bets for the future, not kill the golden goose today.

              • See, If you're hedging your bets on EVs at this very moment, you're 5-10 years behind the curve. In 2015, it wasn't at all certain that EVs were going to be the next dominant auto platform. But it's 2022. At this point, it's a foregone conclusion. It's just a matter of how fast the transition happens. And batteries are still getting better and cheaper as better tech and mass manufacturing comes online. Only a blind person can't see it happening at this point.

                If Ford is still in the "hedging their bets"
                • In 2015, it wasn't at all certain that EVs were going to be the next dominant auto platform. But it's 2022.

                  ..and they are still not close to being a dominant auto platform.

                  At this point, it's a foregone conclusion. It's just a matter of how fast the transition happens.

                  At least 10 million ICE F-150s from now. Probably more.

                  If Ford is still in the "hedging their bets" stage, they are gonna get stomped by Tesla.

                  Cybertruck is vaporware. Ford has one you can actually buy, so I'm not sure who is behind the curve really. I'll bet GM and Dodge have EV trucks before Tesla does. And building a truck is very different from building a car.

        • by EvilSS ( 557649 )
          The Ford F150 is the most popular vehicle in the US. I'd bet 50% have never hauled anything, and 75% probably nothing heavier than a UHAUL or bass boat. People who do a lot of heavy towing get a super duty or heavy duty with a diesel engine.
        • I think it's because most people with full size trucks use them to haul heavy things and sometimes haul heavy things long distances.

          I know quite a few pickup truck owners, and none of them fit this description. The only one who even tows anything regularly pulls a camper trailer and his typical round trip is only 50-60 miles at most. The rest basically use theirs for grocery shopping.

          My next door neighbor mainly just drives his truck to work... which is less than five miles away.

        • by rgmoore ( 133276 )

          Most people with full sized pickup trucks use them like cars the vast majority of the time and only haul stuff with them occasionally. They're at least as much about making a lifestyle statement as they are about practical utility.

          That said, the F150 Lightning seems to be aimed at a fairly specific market: construction workers. They use their trucks primarily to commute to work sites, but they may also run to the lumber yard/home center to pick up loads of construction material. Those are typically sho

      • Indeed. "I hate ICE trucks because they can't run 500K miles without refueling and they can't tow 250 tons of cargo" is what these haters sound like.

        • How about "I can't use my pickup truck to move my stuff a state or two over"?

          An ICE truck can haul loads, refuel in 5 minutes, and go hundreds of miles before needing to stop.

          Mind you, that 85 miles was a BRAND new battery, in perfect weather/temperature, perfect road conditions, and no headwinds or cross-winds

          • I follow the channel you just linked, and they just drove the Lightning to the top of Alaska and back with a pop up camper on board that same truck. Realistic range there was 200 miles. Charging looked like an adventure though.

            The range killer is all about aerodynamics, the weight doesn't matter nearly as much.
            • Also efficiency at various speeds with various loads. Apparently a diesel electric might be better, and/or with a transmission overdrive rather than direct drive motors at all speeds.

            • by EvilSS ( 557649 )
              And the charging issues really didn't come up until they hit the interior of Alaska. In the lower 48 there are a lot of non-Tesla DC Fast chargers now. Enough to get you just about anywhere along the interstate system.
          • by Ksevio ( 865461 )

            I wouldn't expect the first generation of a vehicle to be perfect for all use cases, or really any generation. If you need to regularly haul loads long distances then this isn't the car for you

      • by Smidge204 ( 605297 ) on Tuesday August 09, 2022 @05:51PM (#62775928) Journal

        > So many people hate on the truck just because it doesn't fit their particular use case.

        It's not even "their" use case - it's usually some imagined scenario that's essentially propaganda about the rugged individualist truck owner, fed to them by movies and commercials.

        You rarely, if ever, hear from the people who ACTUALLY have that use case, because they know the vehicle isn't a fit for them and they don't care enough to be on the internet complaining about it.
        =Smidge=

        • The use case on the ranch is the 1806 Ford F-150, because it still works and it cuts into the profits if they buy a new one. Definitely the ag people in my family usually change their car more often than their truck. Until they're making a good proft then they might get the nice truck that they keep shiny and away from shit. Because if it's for work then they're driving it over dirt roads with ruts, down gulleys, pulling tree stumps, etc. If you see a large truck with a super sized cab where the kids can s

        • Here's my list of whys:
          1) Madison Ave., like you said.
          2) Like to sit up high. Better visibility.
          3) Like to have the option of running into someone on the road "if they need hitting".
          4) And, ofc, actual work trucks.

      • If you tow regularly or daily haul with a full bed 200 miles, then the Lightning is not for you, but neither is a Prius. So many people hate on the truck just because it doesn't fit their particular use case.

        Indeed. I'm looking at the Lightning (or similar EV pickup) becoming my next vehicle in the next 3-4 years. I don't need a truck very often, but every once in a while it'd be extremely useful for dump runs, picking up furniture, hardware store trips, and the like. An electric pickup would work a lot better than my wife's ICE SUV for this sort of thing.

        I'm betting there are a lot more truck owners with use cases like mine than there are people regularly hauling thousands of pounds for hundreds of miles.

        • Some people who don't own cars at all, or who have short distance EVs, say to me "that's when I rent something for the weekend or the vacation trip." Because that's much less expensive.

          • If you live in the city, that is probably a viable alternative. But, one way or the other, I'd need a vehicle to go get that rental, just like I need a vehicle to get to the train station or most anywhere else.

            All those things are theoretically within biking distance, but from what I've seen you're taking your life into your hands if you try and ride a bike on any of the rural roads around here. Doubly so during the 8-9 month rainy season.

            If I get an EV truck, that'll be my daily driver. I can always rent a

      • I see the use cases where the F-150 is used as a commuter vehicle. Seems a waste of money for that, but some people demand to have a truck. They'll even make excuses for it ("I might need to haul something twice a year", or "if I get a small car then I could get killed if an F150 hits me!"). In real rural areas though, there's often a sedan that's used to go get groceries or take kids to school, but the urban cowboys don't know that.

      • by Osgeld ( 1900440 )

        everyone should complain about the prius, electric or not, its a terrible and fugly car

    • It's only good for unladen around-town driving where you charge at home.

      So you mean the way most people use their pickups?

    • Do you ever get tired of posting that link? Probably 95% of the pickups I see are daily drivers hauling one or two people around. Yes, if you're hauling a boat then this truck isn't for you. If the truck can fit six grocery bags in the back it's good enough for garage queen suburban existence.

      • I don't know, ask me when I've posted it more than twice

  • by Snotnose ( 212196 ) on Tuesday August 09, 2022 @05:39PM (#62775898)
    Ford can't get the chips needed to meet demand. Congress just said they will give a $7500 tax credit (not deduction, credit. Look it up) for every EV bought. Ford can't meet current demand, thanks to Biden demand just went up, and Ford did the logical by cranking up prices by, um, close to $7500?

    And I don't even have an MBA, just common sense and paying attention to the news.
    • by EvilSS ( 557649 )
      You know that tax credit already exists, yes? F150 lightnings were already getting that $7,500 credit. The new bill just extends the phase out of the existing credit.
  • Everyone saw this coming. When supplies are not meeting demand then prices will go up until supply and demand meet up again. This will likely result in more mining, and over time the prices will likely slowly creep down. We see this happen with gasoline prices all the time.

    I expect plug-in electric hybrids to be popular to ease the demand. With high priced batteries there's a lot of room in the build cost for a small ICE, small battery, and all the complicated bits to make them work together to maintain

    • by Jeremi ( 14640 )

      We can choose fossil fuels, or high energy costs from batteries and renewable energy. Maybe there's a third option? No, probably not.

      A third option would be to drive less. Our ancestors managed to survive without driving dozens of miles a day, I imagine many of us could do the same.

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