Ford and its F-150 pickup, the automaker’s best-selling vehicle, have consistently inspired brand loyalty from truck owners. According to the JD Power 2020 US Automotive Brand Loyalty Study, Ford has a loyalty rate of 54.3%. Now that the automaker moves to electrify its fleet, it appears to be attracting new buyers.
Ford on Wednesday released its second-quarter earnings for 2021, which in addition to containing a surprise profit despite an ongoing chip shortage, revealed that its Lightning F-150 Electric pickup has generated 120,000 pre-orders since its introduction 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 orders and do not reflect exactly how many of these Ford vehicles will sell. Customers can reserve one of these electric vehicles for a $ 100 refundable deposit.
However, it provides information on demand.
Importantly, three-quarters of those new orders come from customers who are new to Ford, according to the earnings release. During Wednesday’s call, CEO Jim Farley also said that two out of five Lightning pre-orders will trade in an ICE van.
Not only does this potentially affect Ford’s sales, but it also validates the company’s recent forays into battery production. Automakers around the world are participating in battery joint ventures with cell and chemical companies, and Ford is no different. The company has a partnership with SK Innovation to manufacture battery cells on US soil and is creating a battery R&D center in Michigan as part of its $ 30 billion investment in electrification.
Increased sales may also help with Ford’s costly commitment to invest in upgrading the embedded electrical architecture that allows Ford to more easily upgrade future EVs and enable new connected capabilities, according to Farley.
“Then When U.S talk about getting better Our electric vehicles it is much more fundamental that single the investment in the stamping Y the engineering of the electric vehicle Y its components Y propulsion, ”Farley said during the call. “That what’s more It includes to completely new Getting closer to a Incorporated software Y hardware system.”
The F-150 Lightning comes with many improvements that make it attractive to Ford newcomers who are willing to pay more than the base price of $ 40,000. It has the same torque and power as its gasoline counterpart, plus an ADAS BlueCruise hands-free system, 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 new Ford maverick, a compact hybrid pickup that starts at $ 20,000, already has about 80,000 orders. The the hybrid is marketed to people who aren’t exactly truck people, but who might want to dive into that group of utilities.
“Demand for our first round of high-volume EVs has clearly exceeded our most optimistic projections,” said Farley. “We are now working around the clock to break the limitations and increase our manufacturing capacity for these hot new battery electric vehicles.”
According to the earnings report, the bank of combined retail orders sold by US customers. Mustang Mach-E and other Ford vehicles was seven times larger than at the same point last year. With increasing demand, Farley said the business is “spring loaded” for a rebound when semiconductor supplies stabilize.