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Ford and its F-150 pickup, the automaker’s best-selling vehicle, have consistently inspired brand loyalty among pickup 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 is preparing to electrify its fleet, it seems to be attracting new buyers.
Ford on Wednesday released its second quarter results for 2021, which in addition to containing a surprise profit despite the continuing chip shortage, revealed that its F-150 Lightning electric pickup has generated 120,000 pre-orders since its unveiling in May. Ford reported slightly lower than expected revenue of $ 26.8 billion, and second quarter net income of $ 561 million.
To be clear, these are not orders and do not reflect exactly how many of these vehicles Ford will sell. Customers can reserve any of these electric vehicles by making a refundable deposit of $ 100.
However, this gives an overview of the demand.
It is important to note that three-quarters of these new orders come from new customers at Ford, according to the earnings release. During Wednesday’s call, CEO Jim Farley also said that two out of five Lightning pre-orders are going to be redeemed for an ICE pickup.
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 engaging in battery joint ventures with cell and chemical companies, and Ford is no different. The company has partnered with SK Innovation to manufacture battery cells on U.S. soil and is establishing a battery R&D center in Michigan, part of its $ 30 billion investment in electrification.
Increased sales may also help Ford’s costly venture to invest in upgrading the integrated electric architecture that makes it easier for Ford to upgrade future electric vehicles and activate new capabilities. connected, according to Farley.
“Then when we speak about Upgrade our electric Vehicles, It is many Following fundamental than correct the investment in the tools and the engineering of the electric vehicle and his Components and propulsion, ”Farley said on the call. “It also understand a completely New approach To a embedded Software and Equipment system.”
The F-150 Lightning comes with many upgrades that make it attractive to Ford newcomers willing to pay more than the base price of $ 40,000. It has the same torque and horsepower as its gas-powered counterpart, plus an ADAS BlueCruise hands-free system, a full infotainment unit, and enough battery capacity to power your entire home in the event of a blackout.
Farley also said on the call that the new Ford Maverick, a compact hybrid pickup that starts at $ 20,000, already has around 80,000 orders. The hybrid is being marketed to people who aren’t exactly pickup truck people, but who might want to dip their toes into this pool of utilities.
“Demand for our first series of high volume electric vehicles has clearly exceeded our most optimistic projections,” said Farley. “We are now working tirelessly to break down the constraints and increase our capacity to manufacture these new, very hot battery electric vehicles”
According to the earnings report, the bank of retail orders sold by U.S. customers for the electric Mustang Mach-E and other Ford vehicles was seven times greater than at the same time last year. With demand increasing, Farley said the company is “springing up” for a rebound when semiconductor supplies stabilize.
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