Bold Electric F-150 Raises Marketplace Stakes

Strategic Business

Revenue from the F-150 is only bettered by the Apple iPhone. With over $40 billion in sales annually, Ford is making a radical decision to go green with America's favorite truck. Bloomberg Businessweek took it one step further, stating “Ford’s decision to electrify the F-150 stands as one of the boldest strategic decisions in 21st-century business.”

Night Troubles

Automotive historian and author, Dan Albert, qualifies Ford's Lightning launch as “a cultural moment for America.” Speculating about the future, he stated, “If Ford can pull this off, they’ll move the entire electric vehicle market.” 'Pulling it off,' is what troubles Ford CEO Jim Farley, who commented in the same Bloomberg article, “Does it keep us up at night? You betcha!”

Fleet Parade

Ford is slated to start deliveries of the F-150 Lightning in late April 2022. Announced a year prior, the move toward an all-electric truck has forced the hand of most other companies in the business. Within months, General Motors and Tesla announced a new fleet of electric trucks and SUVs, and even Dodge has joined the EV parade as of late.

Launch Feels

Farley sees the Lightning as a 'bet-the-company' proposition, and equates the move to Henry Ford's decision to end production of the aging Model T. Farley qualified, the F-150 is “America’s most popular vehicle, and there is no more trusted brand in our industry.” Referring to the imminent Lightning release, he stated, “It feels a lot like the Model A launch in 1928.”

Challenged Transition

Dan Albert is correct about the Lightning's launch as a defining cultural moment, while Farley's fear of 'pulling it off,' is well-founded. Yet, more than any other vehicle, the all-electric F-150 is positioned to be the EV that persuades rural America to go green, while setting the standard for almost every other automaker challenged by the electric transition.

Increased Threat

Like an unwanted diagnosis, electrification is a reality that cannot be ignored. Legacy automakers have had little choice but to migrate to plug-in models in order to meet stringent global mandates for zero-emission vehicles, not to mention the growing competitive threat from Tesla. Within the last year, Ford alone has increased spending on EVs from $11.5 billion to $50 billion.

Progression Practices

In a March 2022 media release, the Motor Company announced its divisive Ford + Plan. Cleaving its automobile production in two, “Ford Blue and Ford Model e will operate as distinct businesses, but share relevant technology and best practices.” Farley estimates that EVs will account for half of Ford’s global sales by 2030, with the eventual progression to an all-electric lineup.

Shifted Stakes

The U.S. government has set a 2050 goal for net-zero emission vehicles. According to the University of Michigan’s Center for Sustainable Systems, increased adoption of EVs is critical. Ford agrees, but implementation and acceptance is a whole other cultural issue. The only real certainty is that the Lightning has already raised the stakes and shifted market paradigms.

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