Ford is constructing extra Mustang Mach-E than ever earlier than in 2023, saying in January it was going to “considerably improve manufacturing” of the electrical SUV this 12 months. That improve in manufacturing seems to be coming at a nasty time as demand for the Mach-E seems to be shrinking. The demand issues aren’t restricted to the Mach-E, as Ford’s different shopper EV, the F-150 Lightning, can be experiencing related points.
In response to knowledge from the analytics agency Cloud Principle, Ford sellers bought simply 27.7% of their Mach-E stock inside 30 days of receiving them throughout the second quarter of the 12 months. This can be a vital drop from the 86.4% “flip price” sellers reported in the identical interval final 12 months. (through Enterprise Insider)
These figures are supported by Ford’s personal Q2 report, which confirmed gross sales of the Mach-E dropped by 21% year-over-year (YoY), from 10,941 in Q2 2022 to eight,633 in Q2 2023.
Whereas gross sales of the Mach-E dipped, deliveries of the Lightning truly elevated in Q2 2023, however sellers are experiencing an identical flip price for the electrical pickup, sitting at simply 39.3%. That can be down significantly from 70% in Q2 final 12 months.
This low flip price is leading to sellers seeing their tons filling up with Ford EVs that nobody needs to purchase. In response to trade insider @CarDealershipGuy on Twitter, some sellers are not accepting Mach-E stock allotted to them from Ford. One seller even famous having two Mach-Es sitting of their lot unsold for over 6 months.
As for the Lightning, sellers are reporting that about 50% of shoppers aren’t following via on their reservations.
Ford is planning to ramp manufacturing for the Mach-E to 210,000 items per 12 months and the Lightning to 150,000 items per 12 months by the tip of 2023. The automaker bought simply over 25,000 EVs within the US within the first half of the 12 months. Based mostly on that and the numbers above, a variety of EV stock might be sitting in seller tons unsold, until one thing dramatic occurs within the second half of the 12 months.