Ford cuts production of the F-150 Lightning
Ford states that it expects further growth in global electric car sales in 2024 – “albeit less than expected”. The US car manufacturer also points out that it is already preparing for the introduction of the next generation of electric cars. The F-150 Lightning rolls off the production line at the Rouge Electric Vehicle Center in Dearborn. According to Ford, the production cuts will affect around 1,400 employees. “Approximately 700 will transfer to the Michigan Assembly Plant, the others will be assigned to the Rouge Complex or other plants in Southeast Michigan or will take advantage of the Special Retirement Incentive Program agreed to in the Ford-UAW 2023 contract,” the company explains.
The extensive transfer of personnel to the Michigan Assembly Plant can be explained by the fact that Ford is planning to increase the output of its combustion engine models in parallel with the production cutbacks for its e-pickup. In its own announcement, Ford also emphasizes the creation of almost 900 new jobs and a third team in two-shift operation at the Michigan Assembly Plant. The aim is “to increase production of the popular Bronco and Bronco Raptor SUVs and the all-new Ranger and Ranger Raptor pickups”.
The bottom section of the company’s announcement states that the switch to a single-shift operation for the F-150 Lightning could also affect a few dozen employees at component plants – “depending on how many employees apply for the Special Retirement Incentive Program”.
Ford President and CEO Jim Farley says his company is using its production flexibility to offer customers choices while balancing growth and profitability. “Customers love the F-150 Lightning, America’s best-selling electric pickup. We see a bright future for electric vehicles for certain consumers, especially with our upcoming digitally advanced EVs and access to the Tesla charging network beginning this quarter.”
In other words, Farley only sees EVs as attractive for certain target groups and in the near to medium term. Last month, the media reported that Ford would halve production figures for its F-150 Lightning electric pickup. According to an insider, only around 1,600 instead of 3,200 units per week were to roll off the production line in Dearborn from January 2024 due to subdued demand. It is now clear that the cutback will take place – but not until April 1.
Ford had already had to suspend production of its F-150 Lightning last summer. The company was only able to resume production at the Rouge Electric Vehicle Center at the beginning of August after a six-week break. In mid-October, however, the US car manufacturer cancelled the first of three shifts due to “various restrictions, including supply chain issues”
At the end of October, Ford announced that it would postpone some of its planned multi-billion investments in new production capacities for electric vehicles and batteries. The first concrete consequences are already known: Ford will be implementing its LFP battery cell factory in the USA on a much smaller scale than originally designed. The US company is also shelving plans for a battery plant for electric commercial vehicles planned with LG Energy Solution and Koç in Turkey. A planned second battery factory on a new campus in Kentucky is also affected by the cost-cutting measures.
When presenting its Q3 business figures, Ford announced that it would only gradually implement several planned investments in view of a billion-euro loss at its Model e electric division and weaker demand. “Many North American customers who are interested in purchasing an electric vehicle are not willing to pay a premium over gasoline or hybrid vehicles, which is severely depressing the price and profitability of electric vehicles,” the manufacturer said a few weeks ago.
The construction of Blue Oval City – Ford’s new EV production campus in Tennessee – will continue without change, but other projects – such as those mentioned above – will be postponed or put on hold.
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