Ford CEO Jim Farley made the announcement Tuesday via Twitter, after company officials said last month that AM would be dropped from new non-commercial vehicles.

“After speaking with policy leaders about the importance of AM broadcast radio as a part of the emergency alert system, we’ve decided to include it on all 2024 (Ford and Lincoln) vehicles,” Farley wrote.

Owners of any electric Ford vehicles not currently equipped with AM reception would receive a free software update to enable it, he added.

The announcement from Canada’s biggest automaker by total sales comes after farmers on both sides of the border expressed concern over the possible loss of AM.

With many rural areas too remote for FM broadcasts, and satellite radio and internet technology not yet universally adopted, AM remains one of the only accessible in-vehicle media for Canadian farmers.

One of the major concerns was the future of emergency broadcasts — for which AM radio remains the only option in many rural areas of Canada.

Farley said Tuesday that Ford will “continue to innovate to deliver even better in-vehicle entertainment and emergency notification options in the future.”

Darrin Qualman, director of climate crisis policy and action for Canada’s National Farmers Union (NFU), described Ford’s latest decision as “a positive step.”

However, he said, AM radio “is so important to rural residents and others that it should not be left to the marketing decisions of corporations such as Ford.”

Communications spectra such as AM, FM and cellular are public property, he noted, and are “licenced to corporations and other entities on the requirement that they will act in the public interest. That responsibility should be made clear to automakers as well.”

Michigan-based Ford’s decision also comes as a bipartisan group of U.S. congresspeople brings forward a bill that would regulate U.S. automakers to maintain AM broadcast radio in their new vehicles at no additional charge.

That bill’s sponsor, Senator Ed Markey of Massachusetts, said in a statement Tuesday that Ford’s reversal “reflects an overdue realization about the importance of AM radio, but too many automakers are still going the wrong direction.”

Markey noted he had previously written to 20 of the world’s leading automakers, of whom eight responded they will not include AM radio in new vehicles.

Companies such as Tesla, Mazda and Volkswagen have removed AM receivers from their electric vehicle (EV) lines, citing electromagnetic interference the EV drivetrain can create with the AM signal.

Representatives from Kubota, John Deere and Stellantis — the parent company of brands such as Chrysler, Jeep and Ram — all previously said in emailed statements to Glacier FarmMedia they do not plan to phase out AM from their vehicles.

— Jonah Grignon reports for Glacier FarmMedia from Ottawa; includes files from Glacier FarmMedia Network staff.

— Article updated May 29 to include comment from NFU’s Darrin Qualman.

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Ford, which has been Canada’s best-selling auto brand since 2009, has stated it plans to stop putting AM radios in non-commercial vehicles by 2024.

The automaker’s decision follows those of companies such as Tesla, Mazda and Volkswagen, which have removed AM receivers from their electric vehicle (EV) lines, citing electromagnetic interference the EV drivetrain can create with the AM signal.

Many rural areas and farming communities are too far from population centres to catch FM radio — making AM the only broadcast media connection for market reports, weather reports and emergency updates.

Representatives from Kubota, John Deere and Stellantis — the parent company of brands such as Chrysler, Jeep and Ram — all said in emailed statements they do not have plans to phase out AM radio in their vehicles.

But even if farming vehicles retain the AM dial, decisions like Ford’s will likely have ripple effects in rural areas.

“There’s a chain of events, of course,” said Darrin Qualman, director of climate crisis policy and action for the National Farmers Union (NFU). “If the automakers phase out the AM in their cars, then it’ll make it more likely that the radio stations will phase out AM broadcasting.

“The way that farmers and rural people are affected isn’t because they end up with the cars that don’t have the AM radios, it’s because the lack of AM radios in cars leads to the shutdown of the AM signals.”

Shifting to newer technology such as internet streaming or satellite radio would not be possible for many farmers, he added.

“Tractors, unlike cars, have a very long lifespan. Farmers keep tractors for 20, 30, 40 years or more, and they are not going to have the latest radio technology.”

Canadian Federation of Agriculture (CFA) president Keith Currie said any new tech would not be able to match AM radio’s universality.

“Can you find certain things? Yes, like sporting events, you can typically find, but not everything’s available yet through satellite radio.”

Currie also said that since “we are a long way away” from effective cellular and 5G coverage in rural areas, the internet is not yet a viable alternative.

Currie said he is an avid AM listener.

“I live in Ontario, so I’m a big Blue Jays fan, so at night, on the tractor in particular, I’ve got the Jays game on.”

‘Need some intervention’

Another area of concern is the potential impact on emergency radio broadcasts.

“In the case of an emergency, (where) we need to communicate across vast regions or provinces all at once, I think people would turn to those AM radio sets,” Qualman said, “if we don’t have the capacity to broadcast over wide areas, it creates a problem.”

Currie said cell coverage would also be an issue when it comes to emergencies, as many would not have a strong enough signal to receive messages.

Qualman said he thinks this issue requires legislative action.

“It can’t just be shaped by the market and profitability drive of the corporate owners of radio stations,” Qualman said. “We probably need some government intervention and regulation to make sure that the AM bands that a lot of people rely on are maintained.”

“Like all things in life, times change, and we have to adapt to it, I just hope we have the resources.”

At least one attempt at such intervention is now underway south of the border.

Bipartisan groups of lawmakers on Wednesday launched legislation in the U.S. Senate and House of Representatives that would direct that country’s transportation secretary to ensure consumers have access to AM radio in all new vehicles, without paying extra.

The proposed rule would give the secretary a year to set a standard for new motor vehicles in the U.S. to come with AM radio. Until that standard is in place, vehicles sold without AM radio receivers would have to be “explicitly labeled” for buyers.

“There is a clear public safety imperative here,” Jessica Rosenworcel, chairwoman of the U.S. Federal Communications Commission (FCC), said in a release Wednesday from the bill’s sponsor, Sen. Ed Markey of Massachusetts.

“Having AM radio available in our cars means we always have access to emergency alerts and key warnings while we are out on the road. Updating transportation should not mean sacrificing access to what can be lifesaving information.”

Markey also noted endorsement for the bill from the U.S. National Association of Broadcasters and National Association of Farm Broadcasters.

“Carmakers shouldn’t tune out AM radio in new vehicles or put it behind a costly digital paywall,” Markey said in his release, saying his bill aims to ensure AM “does not become a relic of the past.”

— Jonah Grignon reports for Glacier FarmMedia from Ottawa. Includes files from Glacier FarmMedia Network staff.

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The base variant of Ford’s electric F-150 truck now starts at $59,974, excluding shipping and taxes, up nearly 50 per cent from its starting price when launched last year (all figures US$).

The Detroit automaker resumed production of the F-150 Lightning earlier this month after recalling 18 electric trucks due to a battery-cell manufacturing defect.

Ford’s hike comes after EV maker Tesla ignited a price war this year by aggressively trimming prices.

A week earlier, Ford said its electric-vehicle business unit was expected to lose $3 billion this year, but remained on track to achieve a pretax margin of eight per cent by late 2026.

The company was not immediately available for further comment on the price increase, which was first reported by Automotive News on Thursday.

— Reporting for Reuters by Kannaki Deka and Nathan Gomes in Bangalore.

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The major Detroit pickup truck brands are sitting on growing inventories of unsold vehicles, according to Cox Automotive data provided to Reuters.

As supply-chain bottlenecks ease, the resolve among Detroit’s automakers to keep inventories tighter than before the pandemic will be tested. Automakers could have to choose between reducing output to avoid price cuts, or offering richer discounts to pump up sales volumes, dealers said.

GM dealers have over 100 days’ supply of Chevy Silverado pickups in stock, reflecting more vehicles on the ground and a seasonally slow pace of sales, according to Cox. Inventory levels are over 100 days’ supply for rival Stellantis’ Ram half-ton and heavy-duty pickups. Ford has 92 days’ worth of F-150s in stock, according to Cox data.

A GM spokesman said Cox’s numbers do not accurately reflect GM’s inventory situation. GM does not disclose detailed inventory figures. However, he said GM is acting to support its pricing strategy, which relies on keeping inventories leaner than in the past.

Stellantis said in a statement it had no downtime planned at any of its North American plants, but constantly reviewed its inventory levels and would make production adjustments as needed.

Industry consultants J.D. Power and LMC Automotive forecast on Friday that U.S. car and light truck sales for February would reach a 14.6 million-vehicle annualized pace. That is up from a year ago, but still well below pre-pandemic levels.

February sales growth was led by a 54 per cent increase in sales to fleet customers, Power and LMC said.

Overall inventories of unsold vehicles are still low, but “are still not sufficient to fulfill demand each month,” Thomas King, president of the data and analytics division at J.D. Power, said in a statement.

GM said its decision to idle the Fort Wayne, Indiana assembly plant that builds Chevrolet Silverado and GMC Sierra pickup trucks for two weeks starting March 27 was done to maintain “optimal inventory levels with our dealerships.”

Who blinks first?

GM, Ford and Stellantis dominate the U.S. large pickup market, and for the past two years have been raising prices on their trucks to record levels as supply-chain snags limited production.

Dealers contacted by Reuters said that now, some customers are waiting for better deals, or are postponing purchases because the combination of high prices and higher interest rates put vehicles out of reach. The automakers face a choice between cutting prices using bigger rebates or subsidized loans, or keeping inventories tight.

“What they’re doing is playing what I call the blink game — whoever blinks first. Especially for trucks,” said Ohio dealer Rhett Ricart, whose Ricart Automotive Group sells Ford and GM trucks at different stores.

Brad Sowers, president of Jim Butler Auto Group in Missouri, said high prices are hitting demand. However, he wrote in an email, “manufacturers do not want to flood the market and be forced to quadruple incentive spending to drive demand that will reduce their margins.”

Some discounts are showing up in the large pickup segment. Ram is offering 2.9 per cent financing for 72-month loans on certain Ram 1500 trucks.

Power and LMC said fewer vehicles were sold in February above their manufacturer suggested prices, and that the average discount rose 4.7 per cent to US$1,335 a vehicle. That is still well below pre-pandemic levels, Power-LMC said.

— Reporting for Reuters by Joseph White and Ben Klayman in Detroit; additional reporting by Kannaki Deka in Bangalore.

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The automaker has raised prices for its electric pickup trucks twice in a span of three months, as it navigates higher costs and supply chain snags.

Automakers across the globe, including Tesla and Rivian Automotive, are also struggling with higher prices of raw materials such as lithium and have warned that high costs were here to stay.

Ford, which has previously said it was targeting annual production of 150,000 Lightning pickups by the fall of 2023, did not immediately respond to a Reuters request for a comment on the price hike.

The company’s shares were down about 3.5 per cent in afternoon trade amid declines in the broader market.

It was, however, not immediately clear when the price hike occurred.

The move comes on the heels of the automaker adding a third work crew at an assembly plant near Detroit as it boosts production of its F-150 trucks.

— Reporting for Reuters by Nathan Gomes in Bangalore.

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The problem: How to modernize the largest combustion pickups to keep demand strong and profits flowing, without over-investing at a time when automakers need to spend on developing electric vehicles and battery factories.

At Ford, many of the newest things about the new Super Duty relate to connectivity and business productivity software that Ford hopes will generate revenue over the life of the vehicle. Ford CEO Jim Farley has stressed the importance of software-driven features and is hiring more executives with digital commerce experience.

Ford will install 5G modems in 2023 model Super Duty trucks to enable services such as driver behavior monitoring and digital paperwork systems for fleet operators. Dashboards have been reprogrammed to make it easier for companies that install specialized equipment such as hoisting arms to connect controls for their gear into the truck’s displays. Onboard scales will measure payloads and the new Super Duties will have more power plugs.

The Super Duty, General Motors’ rival Chevrolet Silverado HD and GMC Sierra HD heavy duty pickups and heavy duty versions of Stellantis’ Ram pickup are among the most profitable vehicles sold today by the Detroit Three automakers, or any rival.

Ford said the Super Duty franchise generates “more revenue than many Fortune 500 companies, including Southwest Airlines, Marriott International or Nordstrom.” Southwest reported $15.8 billion in revenue for 2021 (all figures US$).

Powered by big diesel or gasoline engines, Super Duty prices start at $41,240, but can range up to more than $100,000 for a fully loaded model.

Heavy-duty pickups such as the Super Duty and Silverado HD do dirty work in oil fields and on construction sites. But many are sold to individuals who use them to tow large trailers, and want the same connectivity and comfort features they would expect in a luxury SUV.

For now, battery electric powertrains cannot provide the same towing capability and driving range for heavy-duty pickups as combustion powerplants. Both Ford and GM are upgrading existing engines and transmissions, but not investing what it would take to develop new powertrains from scratch.

Ford on Tuesday unveiled the latest generation of the Super Duty at Churchill Downs racetrack in Louisville, not far from the factory where most Super Duty trucks are built.

Ford said Tuesday it will spend $700 million modernizing its Kentucky truck plant, and expects to hire another 500 workers at the plant to support Super Duty production.

One day ahead of Ford’s Super Duty reveal, Chevrolet outlined a list of improvements to its Silverado HD heavy pickup line, which trails the Super Duty in sales.

Chevrolet said it will now offer only a 10-speed Allison transmission on its heavy duty Silverado trucks. The 6.6-litre diesel engine’s horsepower and torque get a boost, and certain models get upgraded interiors with bigger display screens.

— Joe White is Reuters’ automotive industry correspondent in Detroit.

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The automaker said prices for its 2023 F-150 lightning will be increased in the range of $6,000 and $8,500 depending on the variant, with the cheapest Pro model now priced at about $47,000 (all figures US$).

Customers who have ordered the truck and now await delivery will not be impacted by the price hike, Ford added.

Dearborn, Michigan-based Ford said last month it was expecting commodity costs to rise by $4 billion this year and that it would offset them by raising prices.

Prices of raw materials such as lithium used in batteries have jumped of late, as auto companies such as Tesla and EV pickup maker Rivian rush to secure supplies to avoid disruptions to production.

Earlier in June, General Motors raised prices of its Hummer EV pickup truck to mitigate higher commodity and shipping costs.

— Reporting for Reuters by Shivansh Tiwary in Bangalore.

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The changes come a day after the Detroit automaker warned a chip shortage would lead to a decline to vehicle volume in the current quarter.

Production at factories in Michigan, Chicago and in Cuautitlan, Mexico will be suspended. In Kansas City, production of F-150 pickup trucks will be idled while one shift will run for production of its Transit vans.

The Detroit automaker will also run a single shift or a reduced schedule at its factories in Dearborn, Kentucky and Louisville, while removing overtime at its Oakville factory in Ontario. The Oakville plant currently makes Edge and Lincoln Nautilus SUVs.

All changes will be in place for the week beginning Feb. 7.

Ford shares slumped on Friday, after the automaker posted smaller-than-expected quarterly income and forecast a slower recovery in 2022 vehicle production than rival General Motors.

However, the company said it expected vehicle volume to improve significantly in the second half.

— Reporting for Reuters by Hyunjoo Jin and Ben Klayman.

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GM CEO Mary Barra on Wednesday told the annual CES technology conference via video that the electric Silverado will launch in two stages in 2023, starting in the second quarter with a $39,900 WT work truck that will be delivered to a limited group of commercial fleets (all figures US$).

In the fall of 2023, GM plans to start delivering a consumer, outdoor adventure-oriented model that will start at $105,000 — more than an electric Mercedes EQS sedan.

Retail customers will see less expensive versions of the electric Silverado roll out in 2024 and beyond, Chevrolet officials said in briefings ahead of Barra’s CES speech. Barra was scheduled to make her speech online after GM pulled out of in-person attendance at CES due to the spread of the Omicron variant of the coronavirus.

The electric Silverado’s debut escalates a battle for sales and customer loyalty in a segment that includes some of the most profitable vehicles the Detroit automakers sell. Startup Rivian Automotive’s electric R1T pickup, first shown in 2018, and Tesla CEO Elon Musk’s polarizing vision for an all-electric pickup called the Cybertruck, spurred the Detroit Three to accelerate development of electric pickups.

The Cybertruck’s launch date remains uncertain. For now, the first lap of the electric pickup race is a contest among Ford, GM and Rivian, which began shipping the first of its $67,500 and up R1T models late last year.

The electric Silverado, built on the same architecture as the GMC Hummer EV, will enter the race for both fleet and consumer buyers a year or more behind the electric Ford F-150 Lightning. That gap reflects contrasting strategic choices by the long-time rivals.

Barra and GM president Mark Reuss are betting GM will win in the long run by first developing dedicated electric vehicle architectures and a vertically-integrated battery and motor production chain, then launching electric vehicle models in high volume during the middle and latter part of this decade.

By then, GM executives expect the costs of the company’s proprietary Ultium battery technology will be lower than rivals, conferring a decisive advantage.

Ford took a different path. The F-150 Lightning due for delivery starting this spring is a modified version of the current, gasoline F-150 that is part of the best-selling vehicle line in the United States.

Ford’s approach was faster, and Ford CEO Jim Farley last month said the company had to cap at 200,000 the number of reservations it will take from consumers for the truck.

Farley is pushing aggressively to build as many Lightnings as possible before GM’s Silverado and other rivals hit the market. On Tuesday, Ford said it planned to double capacity for building Lightnings at its Rouge complex in Dearborn, Michigan. to 150,000 vehicles a year. Ford last September said it was increasing Lightning capacity to 80,000 from 40,000 vehicles.

Ford also is starting work with battery partner, SK Innovation, on an $11.4 billion network of vehicle assembly and battery-making plants in Tennessee and Kentucky.

Ford and GM both are targeting commercial fleet customers with electric pickups priced just below $40,000.

GM said the WT, or work truck, version of the Silverado EV will have a 400-mile driving range and will first go to a select group of fleet customers under deals already negotiated. GM expects to deliver “tens of thousands” of electric work trucks, said Steve Carlisle, head of GM’s North American operations.

Ford and GM are taking different paths to winning retail customers. The F-150 Lightning for retail customers has a 300-mile range, a 400-litre capacity front trunk that can function as a drink cooler and an option that enables the truck to power a house during a blackout. It can carry 1,800 pounds of stuff. The consumer Lightning had a starting price of $52,974, excluding tax breaks, before Ford capped orders.

The electric Silverado RST for retail buyers has a 400-mile range, a “mid-gate” in the back of the cab that can accommodate kayaks and surfboards, but carries less cargo and will not have backup generator capability when it launches.

Carlisle said the generator function is “very much on the radar.” A Chevrolet spokeswoman said bi-directional charging to power a home will be available within the first year of production.

GM executives said they will emphasize the Silverado’s superior range in advertising that will start this year.

GM’s decision to charge European luxury car prices for the first Silverado RSTs mirrors the strategy for the first Hummer EVs, which started at over $110,000 and are now available for starting prices of $99,995 — more than double the average transaction price for a GM vehicle.

— Joe White is a Reuters automotive industry correspondent in Detroit.

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Ford’s announcement comes a day ahead of rival General Motors’ public introduction of the Chevrolet Silverado electric pickup, which is slated to go on sale in early 2023.

The Silverado E will be unveiled by GM CEO Mary Barra on Wednesday in a remote session connected with the annual Consumer Electronics Show in Las Vegas.

Shares of both U.S. automakers jumped on Tuesday. In afternoon trading, Ford was up nearly 12 per cent to $24.29, boosting its market cap to $97 billion (all figures US$). GM was up 7.6 per cent to $65.83, with its market cap climbing above $95 billion.

Ford CEO Jim Farley in early December told CNBC host Jim Cramer that Ford had to stop taking reservations for the 2022 Lightning “because we had so many.”

Ford originally had production capacity for 70,000-80,000 Lightnings. Farley said in the December interview that Ford aimed to double that over the next two years at the company’s Rouge factory near its Dearborn, Mich. headquarters.

Ford also is planning to triple annual production of its popular Mustang Mach-E electric crossover to more than 200,000 by 2023, to meet better-than-anticipated demand.

The automaker said it will have the annual capacity to build 600,000 electric vehicles globally within 24 months, when it aims to become “the clear No. 2 electric vehicle maker in North America” behind Tesla, which last year sold more than 900,000 EVs.

The 2022 F-150 Lightning will have a starting price of $39,974, and is being aimed at both retail and commercial customers.

— Paul Lienert is a Reuters correspondent covering transport automation and electrification from the Detroit area.

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