Ford’s New F-150 Lightning Truck to Get Price Hike

Ford

F 2.26%

said it is adjusting prices because of higher materials costs and other factors. The new prices will apply only to new orders placed when the order bank reopens Thursday, the company said.

The cheapest version of the truck will now start at $46,974. That is about $7,000 higher than the sub-$40,000 starting price tag that was originally promoted by

Ford

F 2.26%

executives.

Auto makers more broadly have been raising prices on electric vehicles, looking to offset higher costs for raw materials such as lithium and cobalt that are key inputs for batteries. For instance,

General Motors Co.

in June tacked on $6,250 to the price of GMC Hummer electric pickup-truck models, which now range from around $85,000 to $105,000, citing an increase in commodity and logistics costs.

Industry executives are betting that consumer demand will remain strong for these new EV models, even as they increase the sticker price, and point to long waiting lists for some models, including the F-150 Lightning. Ford in December capped reservations for the F-150 Lightning at 200,000 vehicles.

The auto industry is still confronting supply-chain snags that have limited supplies of all vehicles, inflating prices overall for car shoppers. With parts shortages continuing to dent production, car companies don’t foresee consumers getting any price relief this year or even next.

The new price range for 2023 model-year F-150 Lightning will now span $46,974 to $96,874 for the most pricey configurations, the company said.

Ford Chief Financial Officer

John Lawler

said earlier this year that rising commodity costs have wiped out profits on another EV model that is sold by Ford: the Mustang Mach-E. Ford also increased prices on the Mach-E SUV in the first quarter.

The move comes as lawmakers are looking to recast the $7,500 tax credit for electric-vehicle purchases, adding new requirements for models to qualify. Among those new restrictions would be a price cap that would make electric trucks priced at $80,000 or higher ineligible for the subsidy.

Auto industry lobbyists have said the proposed changes would make nearly all EV models on sale now ineligible for the subsidy and future models would have to meet a high bar for North American-sourced battery content.

A Ford spokesman said the proposed revisions to the EV tax credit weren’t the driving force behind the price increase.

Ford, like other global car companies, is trying to add new battery chemistries to defray higher materials costs and striking partnerships with battery makers and minerals providers to lock in supplies. In July, Ford said it has secured enough battery inputs to build 600,000 electric-vehicles globally by late 2023.

Write to Nora Eckert at [email protected]

Ford

F 2.26%

said it is adjusting prices because of higher materials costs and other factors. The new prices will apply only to new orders placed when the order bank reopens Thursday, the company said.

The cheapest version of the truck will now start at $46,974. That is about $7,000 higher than the sub-$40,000 starting price tag that was originally promoted by

Ford

F 2.26%

executives.

Auto makers more broadly have been raising prices on electric vehicles, looking to offset higher costs for raw materials such as lithium and cobalt that are key inputs for batteries. For instance,

General Motors Co.

in June tacked on $6,250 to the price of GMC Hummer electric pickup-truck models, which now range from around $85,000 to $105,000, citing an increase in commodity and logistics costs.

Industry executives are betting that consumer demand will remain strong for these new EV models, even as they increase the sticker price, and point to long waiting lists for some models, including the F-150 Lightning. Ford in December capped reservations for the F-150 Lightning at 200,000 vehicles.

The auto industry is still confronting supply-chain snags that have limited supplies of all vehicles, inflating prices overall for car shoppers. With parts shortages continuing to dent production, car companies don’t foresee consumers getting any price relief this year or even next.

The new price range for 2023 model-year F-150 Lightning will now span $46,974 to $96,874 for the most pricey configurations, the company said.

Ford Chief Financial Officer

John Lawler

said earlier this year that rising commodity costs have wiped out profits on another EV model that is sold by Ford: the Mustang Mach-E. Ford also increased prices on the Mach-E SUV in the first quarter.

The move comes as lawmakers are looking to recast the $7,500 tax credit for electric-vehicle purchases, adding new requirements for models to qualify. Among those new restrictions would be a price cap that would make electric trucks priced at $80,000 or higher ineligible for the subsidy.

Auto industry lobbyists have said the proposed changes would make nearly all EV models on sale now ineligible for the subsidy and future models would have to meet a high bar for North American-sourced battery content.

A Ford spokesman said the proposed revisions to the EV tax credit weren’t the driving force behind the price increase.

Ford, like other global car companies, is trying to add new battery chemistries to defray higher materials costs and striking partnerships with battery makers and minerals providers to lock in supplies. In July, Ford said it has secured enough battery inputs to build 600,000 electric-vehicles globally by late 2023.

Write to Nora Eckert at [email protected]