Although Ford’s electric pickup saw higher demand in October, Mustang Mach-E sales surprisingly fell over 53% month-over-month. The move comes as Ford pulls back Mach-E production.
Ford’s October 2023 EV sales
After setting a new sales record in September, selling 5,872 (+153% YOY) Ford Mustang Mach-E sales dropped to 2,732 in October.
Despite Mach-E sales falling over 20% through the first half of 2023, Ford retooling its Cuautitlan plant was expected to boost output. And it did – up until recently.
The Mach-E carried Ford’s sales in a record-setting third quarter, accounting for over 70% of total EV sales. Meanwhile, sales of Ford’s electric pickup, the F-150 Lighting, slipped by 46% in Q3.
Lightning sales were expected to pick up following a six-week shutdown. That said, Ford sold 3,712 Lightning models in October, up 52.4% compared to last year.
Overall EV sales are up 12.6% through October, beating out ICE vehicles (+6.8%) growth but losing out to hybrids (18.8%). Ford’s ICE sales fell 8.8% in October, including its popular F-series (-5% YOY).
To boost EV demand, Ford introduced a new “Flash” trim for 2024. Ford says the new trim hits the “sweet spot” with 320 miles range, a tech-loaded interior, and a heat pump for under $70,000.
Pulling back Mustang Mach-E production
Ford has been ramping up production all year as “Improved Mustang Mach-E inventory flow began to hit at the end of Q2,” according to Andrew Frick, VP of sales distribution.
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Ford Mustang Mach-E production
0
360
7,481
11,858
13,639
13,000
11,611
7,203
11,716
7,895
Ford Mustang Mach-E production YTD (Source: Ford)
However, Ford’s CEO, John Lawler, explained on last week’s earnings call the company has “taken out some Mustang Mach-E production.”
Lawler added, “We are also slowing down several investments, including making a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky.” Ford is delaying around $12 billion in EV spending altogether.
The news comes as rival GM announced EV delays of its own. The company said it was pushing back production of its Equinox, Silverado RST, and GMC Sierra Denali EVs by “a few months.”
Electrek’s Take
There’s been a lot of discussion on whether EV demand is pulling back or not. Electric vehicle sales hit another record with 7.9% of total auto sales, up from 7.2% in Q2 and 6.1% a year ago, according to Cox Automotive.
EV sales have now increased for 13 straight quarters, and a 14th is more than likely. Although prices are down significantly from last year, led by price cuts from EV leader Tesla, new models, and higher inventory will likely spur demand.
Chevrolet Blazer EV deliveries began this past quarter, Tesla’s Cybertruck is set to start rolling out any day, and Kia opened orders for its flagship EV9 last month.
New EVs and lower prices will continue pushing sales higher. Hyundai’s IONIQ 5 and Kia’s EV6 set new October sales records. Many automakers, including Volvo, expect the momentum to continue as new, more advanced models hit the market, offering more value to buyers.
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GreenPower Motor Company says it’s received three orders for 11 of its BEAST electric Type D school buses for western state school districts in Arizona, California, and Oregon.
GreenPower hasn’t made the sort of headline-grabbing promises or big-money commitments that companies like Nikola and Lion Electric have, but while those companies are floundering GPM seems to be plugging away, taking orders where it can and actually delivering buses to schools. Late last year, the company scored 11 more orders for its flagship BEAST electric school bus.
As far as these latest orders go, the breakdown is:
seven to Los Banos Unified School District in Los Banos, California
two for the Hood River County School District in Hood River, Oregon
two for the Casa Grande Elementary School District in Casa Grande, Arizona
Those two BEAST electric school buses for Arizona will join another 90-passenger BEAST that was delivered to Phoenix Elementary School District #1, which operates 15 schools in the center of Phoenix, late last year.
“As school districts continue to make the change from NOx emitting diesel school buses to a cleaner, healthier means of transporting students, school district transportation departments are pursuing the gold standard of the industry – the GreenPower all-electric, purpose-built (BEAST) school buses,” said Paul Start, GreenPower’s Vice President of Sales, School Bus Group. “(The) GreenPower school bus order pipeline and production schedule are both at record levels with sales projections for (2025) set to eclipse the 2024 calendar year.”
GreenPower moved into an 80,000-square-foot production facility in South Charleston, West Virigina in August 2022, and delivered its first buses to that state the following year.
Electrek’s Take
Since the first horseless carriage companies started operating 100 years ago (give or take), at least 1,900 different companies have been formed in the US, producing over 3,000 brands of American automobiles. By the mid 1980s, that had distilled down to “the big 3.”
All of which is to say: don’t let the recent round of bankruptcies fool you – startups in the car and truck industry is business as usual, but some of these companies will stick around. If you’re wondering which ones, look to the ones that are making units, not promises.
While some recent high-profile bankruptcies have cast doubt on the EV startup space recently, medium-duty electric truck maker Harbinger got a shot of credibility this week with a massive $100 million Series B funding round co-led by Capricorn’s Technology Impact Fund.
It’s been a rough couple of weeks for fledgling EV brands like Lion Electric and Canoo, but box van builder Harbinger is bucking the trend, fueling its latest funding round with an order book of 4,690 vehicles that’s valued at nearly $500 million. Some of the company’s more notable customers including Bimbo Bakeries (which owns brands like Sara Lee, Thomas’, and Entenmann’s) and THOR Industries (Airstream, Jayco, Thor), which is also one of the investors in the Series B.
The company plans to use the funds to ramp up to higher-volume production capacity and deliver on existing orders, as well as build-out of the company’s sales, customer support, and service operations.
“Harbinger is entering a rapid growth phase where we are focused on scaling production of our customer-ready platform,” said John Harris, co-founder and CEO. “These funds catalyze significant revenue generation. We’ve developed a vehicle for a segment that is ripe for electrification, and there is a strong product/market fit that will help fuel our upward trajectory through 2025 and beyond.”
The company has raised $200 million since its inception in 2021.
There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.
The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.
“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”
In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”