Ford’s Electric Mustang Mach-E Inventory Piling Up as Automaker Confronts EV Inventory Problem
As automakers around the world invest billions of dollars into electric vehicles (EVs), Ford is no different with its bullish approach. It has ramped up production, but it is having difficulty moving its inventory of Mach-E and Lightning EVs.
As per Cloud Theory analytics, Ford dealers are selling fewer EVs than they were last year. This blog post will discuss the problems Ford is facing with its electric Mustang Mach-E inventory and how it could impact the automobile industry in the coming years.
The second quarter of 2022 was excellent for Ford dealers looking to sell the Mustang Mach-E. They were able to sell 86.4% of the inventory within 30 days. However, the turn rate fell to 27.7% during the same period in 2023, even as Ford had more than twice as much inventory on the market.
This suggests that Ford’s dealers are having difficulty finding buyers for the Mach-E, which could result in a severe problem for the automobile manufacturer. Furthermore, Ford’s Q2 sales of the Mach-E fell by 21% from 2021 to 2023.
The Lightning, Ford’s electric pickup truck, is also experiencing issues with inventory and order fulfillment. The automaker received over 200,000 Lightning reservations at the end of 2021, which is expected to create a three-year backlog.
This issue has turned some dealers away from EVs, as Ford’s current production rate is not aligned with customer demand. This could create problems for the EV market in the long term if customers start losing faith in Ford’s commitment to building and selling EVs.
“I think Ford’s got a real problem on their hands based on the bets they’ve made,” Ford dealer. “I have Lightnings in stock and Mach-Es in stock. We’ve never had that before. “I think production is exceeding demand,” the East Coast dealer added. “We are able to decline allocation… We didn’t decline any model except EVs.”
Ford is not the only automaker experiencing problems with their EV inventory. Tesla, the world’s leading seller of electric vehicles, has also had issues with bloated inventory. In the first quarter of 2022, the company reported an inventory of 3.6 months, which is higher than analysts’ expectations.
The current difficulties faced by the industry suggest that the market is experiencing its first growing pains. However, manufacturers need to work quickly to ensure that they match production with demand, or else they risk losing customers.
The current issues faced by Ford are not due to a lack of investment or enthusiasm for EVs. The problems could be attributed to reservations made by customers but were never fulfilled due to the global semiconductor chip shortage. Ford is investing $22bn to ensure that it can produce more than 600,000 EVs by 2023.
The company is also investing $7bn to convert its iconic vehicle, the Ford Transit, into an EV. These investments suggest that Ford has faith in the EV market’s future, and they are working to become a leader in the industry.
Ford’s electric Mustang Mach-E inventory piling up could be a sign of growing pains in the EV market. It is an early warning sign for the automobile industry to match production with demand. The issue of inventory has also affected Tesla in the first quarter of 2022, which raises concerns about the EV industry’s future. Ford is investing billions of dollars in EVs to ensure that it can produce more than 600,000 units by 2023, indicating its commitment to EVs. In conclusion, Ford’s issues will eventually be resolved as the industry adapts to the current growing pains, which will ultimately benefit the consumer and the environment in the long term.