Ford's Electric Vehicle Sales Plunge 31.4% Amid Mustang Mach-E Recall

Ford Motor Company's electric vehicle sales experienced a significant decline of 31.4% in the second quarter. This downturn was primarily attributed to the suspension of sales for the Mustang Mach-E, one of Ford's flagship electric vehicles, due to safety concerns that could potentially trap passengers inside the vehicle. Additionally, the temporary halt in production for the 2025 model upgrade exacerbated the shortage of these key electric vehicle models.

The Mustang Mach-E, which was once a top-selling model for Ford, was taken off the market due to a software glitch in the electronic door lock system. This issue, which could potentially trap children or pets inside the vehicle, especially in high temperatures, has led to a recall of approximately 317,000 units. The company has assured that the affected vehicles will be repaired, and sales are expected to resume in July.

Ford's decision to temporarily halt sales and production has had a ripple effect on its overall electric vehicle sales. The Mustang Mach-E's sales dropped by 19.5% to 10,178 units, while the F-150 Lightning electric pickup truck's deliveries decreased by 26.1% to 5,842 units. In contrast, the sales of conventional and hybrid F-series pickup trucks remained robust, with a total of 216,617 units sold. The electric cargo van E-Transit also saw a significant decline, with only 418 units sold in the quarter, a drop of 88%.

Despite the challenges in the electric vehicle market, Ford's overall sales increased by 14.2%. This growth was driven by strong demand for conventional and hybrid vehicles, with the F-series trucks and hybrid models seeing significant increases in sales. The company's employee pricing promotion also played a role in boosting sales.

Ford is now focusing on developing more affordable electric vehicles, with plans to launch a model priced below $30,000 by 2027. This shift in strategy comes as the company faces increasing competition in the electric vehicle market and seeks to appeal to a broader range of customers.

The Mustang Mach-E suspension and the temporary halt in production for the 2025 model upgrade have highlighted the challenges that automakers face in transitioning to electric vehicles. Ensuring the safety and reliability of these vehicles is paramount, and any issues can have a significant impact on sales and customer trust. Ford's experience serves as a reminder of the importance of having a robust supply chain and production process in place to ensure the timely delivery of products to customers.