Ford CEO Jim Farley pats a Ford F-150 Lightning truck before announcing at a press conference that Ford Motor Company will partner with the world’s largest battery company, a China-based company called Contemporary Amperex Technology, to create an electric vehicle battery factory. in Marshall, Michigan on February 13, 2023 in Romulus, Michigan.
Bill Pugliano | Getty Images News | Getty Images
DETROIT – Ford engine expects production of its F-150 Lightning electric pickup to be down at least until the end of next week to address a potential battery issue that led to a vehicle fire on February 4, the automaker announced on Wednesday.
The fire confirmation and updated timeline comes a day after Ford confirmed production of the much-watched vehicle was suspended early last week following a vehicle experiencing a problem with the battery during a quality inspection before delivery.
Ford said Wednesday it believes engineers have found the root cause of the fire. The investigation into the issue is expected to be completed by the end of next week, followed by adjustments to the truck’s battery production process that “could take a few weeks”.
A Ford spokeswoman declined to divulge any additional details about the issue, which led to a halt in production as well as a halt in shipments of trucks already produced.
The battery supplier for the truck is South Korea-based SK On, a spin-off of SK Innovation, with which the Detroit automaker announced a joint venture with last year to establish battery production facilities in the UNITED STATES.
Ford said it is not aware of any incidents related to this issue in vehicles that have previously been delivered to customers and dealerships. Retailers can continue to sell vehicles they already have in stock.
The F-150 Lightning is being watched closely by investors as it is the first consumer electric pickup truck on the market and a major launch for Ford.
The battery issue comes on top of ongoing “execution issues” detailed to investors earlier this month by Ford CEO Jim Farley that crippled the automaker’s fourth-quarter earnings.
Farley reiterated on Wednesday that the automaker needs to do better operationally to be more profitable and align its margins with those of its competitors. He said Ford is less profitable than its legacy counterparts because its cost disadvantage is between $7 billion and $8 billion.
“We can cut costs, we can cut headcount, we can do it very quickly, and we’ll do whatever we need to,” Farley told a Wolfe Research conference. “The reality is that if you don’t change the efficiency of engineering, supply chain and manufacturing, the core statement of work, the way people work, the efficiency of all of this will push back
Farley later added, “It’s really about rethinking what we do in the part of the business that’s been around for 120 years.”
Automakers regularly have issues and recalls associated with vehicles, but battery issues are of particular concern and interest as automakers invest billions of dollars in vehicles.
One of the most notable issues involves General Motors’ Chevrolet Bolt electric vehicles. Two years ago, the Detroit automaker had to recall all vehicles built to date to address fire issues caused by “rare manufacturing defects” at the facilities of its battery supplier LG Battery Solution.
