In today’s latest breaking news, Ford Motor Co. announced halting shipments and manufacturing of F-150 Lightning vehicles because of a potential battery issue. It is a setback for the company in its efforts to increase the production of EV pickup trucks.
Detroit’s production plant has been idle since last week
According to a communiqué from a Ford spokesperson on Tuesday, the manufacturing of Lightning vehicles has been halted at its production facility based in the Detroit area since last week. The company noticed a potential battery issue during the pre-delivery quality checks, halted their shipments, and ordered an investigation into the issue.
Takes an early lead in the EV market
After commencing production of Lightning vehicles in April 2022, Ford is putting in significant efforts to ramp up production to clear the long waiting list. Jim Farley, Chief Executive at Ford, says the company is doing its best to benefit from the market for electric pickup trucks. The Lightning vehicles of Ford compete directly with the RIT pickup of Rivian Automotive Inc. and the GMC Hummer EV of General Motors Co.
According to Ford, auto reviewers praised its Lightning vehicles, and the company currently has a waiting list of 200,000 potential customers. The Lightning pickup truck is one of the electric vehicles being sold by Ford in the US. Its other EV models are the Transit cargo van’s EV version and the Mustang Mach-E SUV. The company sold 15,600 F-150 pickups in 2022 alone.
Plans to exceed Tesla in EV sales
Traditional automakers, along with Ford, are trying to close the gap for EVs with Tesla, a market leader. Mr. Jim Farley said Ford is on track to surpass Tesla in EV sales in the US soon. He further stated the company missed the analysts’ expectations in Q4 because of supply chain management issues and manufacturing problems. It also missed the lower end of the annual guidance by over $1 billion. Traditional automakers are racing with startups in a bid to develop, manufacture, and sell several electric vehicles. However, supply chain issues have led to a slow start in production at several automakers.
Airbnb Reports First Annual Profits on Strong Demand for Overseas Travel
In today’s top news headlines, Airbnb, a short-term rental company, recorded its first-ever annual profits in Q4 on strong demand for overseas travel by Americans. The strong dollar helped Americans travel across the world and in Europe.
Airbnb reported a profit of $1.9 billion in 2022 after posting a loss of $352 million the previous year. The company reported a profit of $319 million in Q4, beating analysts’ expectations of $171 million. According to a communiqué from Airbnb, strong travel demand from Americans helped it report higher profits despite growing recession fears and higher inflation. Several Americans preferred to stay in urban centers. The weak demand during the pandemic is showing signs of easing and normalizing travel patterns.
Airbnb also stated it expects pressure on average room rates this year because of increased bookings in cheap destinations and the application of discounts. The company gave guidance of up to $1.82 billion in revenues in Q1 2023.
