Ford F-150 Electric Slowdown Leads to High-Stakes Court Battle Over Tooling Costs

Ford Motor Company’s decision to delay its next-generation F-150 electric pickup has sparked a supplier dispute now escalating in court. As production for the revamped model, previously slated for higher volume, was pushed to 2028 with sharply reduced output targets, one supplier claims it was left holding major financial losses.

A new lawsuit alleges that commitments tied to the program’s earlier timeline were suddenly reversed, leaving investment costs unreimbursed.

Supplier Preparations Collide With Ford’s Delayed TE1 Production

The next-generation F-150 EV, known internally as TE1, has already faced multiple production delays and a substantial scaling back of planned volume at Ford’s Tennessee Electric Vehicle Center. Originally intended for an annual output of around 300,000 units, the program now targets fewer than 100,000, forcing tier-one supplier Nexteer to halt downstream component plans, according to Ford Authority.

Tier-two supplier Swoboda Inc. claimed that this abrupt change canceled its agreement with Nexteer just months after it secured the project for cylindrical headers. Swoboda stated that it invested heavily in specialized tooling and manufacturing equipment to meet program requirements before the deal was terminated.

Financial Fallout Sparks Lawsuit Over Unreimbursed Costs

Swoboda filed suit against Nexteer in Oakland County Circuit Court, seeking repayment of $1.4 million in tooling and an additional $1.2 million in machinery purchased after the companies aligned on the program in mid-2023. The complaint argues Nexteer had documented assurances that Swoboda would be reimbursed if the Gen 2 program shifted and the company wasn’t ultimately awarded the long-term contract.

Nexteer has not reimbursed the expenses, according to the filing, though the company stated that it values supplier relationships and aims for a fair resolution as litigation continues. The dispute underscores the financial ripple effects cascading through the EV supply chain as automakers reassess production timelines amid softer market demand.

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