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Ford raises price of F-150 electric truck as inflation bites

Published 2022-10-05, 03:34 p/m
© Reuters. FILE PHOTO: The corporate logo of Ford is seen at Brussels Motor Show, Belgium January 9, 2020. REUTERS/Francois Lenoir
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(Reuters) -Ford Motor Co is raising the price of its electric truck F-150 Lightning Pro for the 2023 year model by nearly 11%, seeking to cushion the hit from ongoing supply chain snags and decades-high inflation, a spokesperson for the automaker said on Wednesday.

The price of the new model has been set at $51,974 compared to $46,974 earlier, due to "ongoing supply chain constraints, rising material costs and other market factors," the spokesperson said.

U.S. automakers including EV giant Tesla Inc (NASDAQ:TSLA) and Rivian Automotive Inc have also raised prices for their vehicles this year, squeezed by tough economic conditions that have been worsened by the Russian invasion of Ukraine.

In August, Ford raised prices for its F-150 Lightning lineup for the first time since it was revealed last year, by a range of $6,000 and $8,500 depending on the variant.

The Pro model, the cheapest of the variants, was priced nearly 18% higher than before, amid a surge in costs of raw materials such as lithium that is used in EV batteries.

The Ford spokesperson said those who have already scheduled their order, including commercial and government customers, will not be affected by the latest hike.

© Reuters. FILE PHOTO: The corporate logo of Ford is seen at Brussels Motor Show, Belgium January 9, 2020. REUTERS/Francois Lenoir

On Tuesday, Ford reported strong demand for new vehicles in the United States, saying retail orders were rapidly expanding, but warned that supply issues continued to weigh on sales.

Demand for cars and trucks may lose steam in the coming quarters as rising interest rates discourage consumers from paying more money for vehicles, analysts have said.

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