Ford has revealed a few more details about its updated projection to achieve electric vehicle production of 600,000 units annually within 24 months (by the end of 2023).
As we understand, it does not mean 600,000 BEV produced globally in 2023, but that the rate, at least in December 2023, will be at 50,000 BEVs per month.
Ford's CEO Jim Farley said in a recent interview with Bloomberg Markets and Finance that the company's business is improving in terms of parts supply and profitability.
Ford F-150 Lightning - 160,000 per year
One of the key points of the talk was the Ford F-150 Lightning electric pickup. According to Jim Farley, Ford’s new Rouge Electric Vehicle Center (part of the Ford Rouge Center) in Dearborn, Michigan, was expected to produce 80,000 units per year in 2024 (up from 40,000 previously).
But considering the demand (close to 200,000 reservations and soon an open order bank) it's not enough.
Currently, Ford plans to double the Ford F-150 Lightning output at the Rouge Electric Vehicle Center, which will require a significant investment (a couple hundred million) for a bigger building. As we understand, the new target is now 160,000 annually or so.
"...we only capacitize about 80,000 so we'll have to double that and that means physically building a bigger building..."
200,000 Ford Mustang Mach-E
The high demand for electric cars has prompted the company to reconsider its strategy and instead of launching more models, first improve the availability of the existing ones.
For example, the goal for the Ford Mustang Mach-E is to reach over 200,000 annually (in North America and Europe) by 2023. That's roughly three times higher volume than in 2021.
...Well, we really need to prioritize, right now we have three hits on our hands..."
600,000/year rate at the end of 2023?
If we start adding up the numbers, 160,000 Ford F-150 Lightning and 200,000 Ford Mustang Mach-E, plus some noticeable five-digit number for the Ford E-Transit (produced separately in North America and Europe), it will probably exceed 400,000.
Then there is Ford's EV project in Europe - based on the Volkswagen MEB platform (at least one car). The first model - a small crossover/SUV is expected in 2023.
The European electrification plan assumes 600,000 MEB-based EVs over six years, starting in 2023, which indicates 100,000 per year on average.
The biggest constraint of electrification - according to Jim Farley - is the supply chain, specifically batteries.
"...really, the constraint to get to 600,000 is to get those batteries..."
The company invested in three new battery gigafactories in Tennessee and Kentucky, but it will take a few years, so they will not contribute to the 600,000 unit target.