Ford has announced its decision to reduce production of the F-150 Lightning electric pickup in order to focus on gas vehicles. This move comes after the automaker initially announced plans to cut F-150 Lightning production by around half. The decision will impact 1,400 workers and is set to go into effect on April 1.
According to a press release from Ford, around 700 workers from the Rouge Electric Vehicle Center, where the F-150 Lightning is produced, will be transferred to the Michigan Assembly Plant to support the production of gas-powered vehicles such as the Bronco and Bronco Raptor, as well as the upcoming Ranger and Ranger Raptor. The remaining workers will be offered positions at the Rouge Complex in Dearborn or other Southeast Michigan Ford facilities. They will also have the option to use the Special Retirement Incentive Program included in the UAW-Ford contract.
The decision will also impact a few dozen workers at component factories that currently support F-150 Lightning production. The extent of the impact will largely depend on how many employees apply for the retirement program. If necessary, Ford plans to place these workers in Southeast Michigan facilities.
To compensate for the reduction in F-150 Lightning production, Ford will hire 900 net new hires at the Michigan Assembly Plant. This will add a third shift of up to 1,600 workers, increasing production to seven days a week from the current five days.
Despite the reduction in electric vehicle (EV) production, Ford still forecasts growth in EV sales this year. However, the growth is expected to be less than previously anticipated. Ford is preparing to launch its next generation of EVs and believes there is a bright future for electric vehicles, especially with its upcoming digitally advanced EVs and access to Tesla’s charging network.
Jim Farley, Ford CEO and President, stated, “We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability.” He also expressed confidence in the F-150 Lightning’s popularity and the potential for electric vehicles in the market.
As of now, Ford has not responded to requests for comment regarding when F-150 Lightning production will return to current levels.
This decision by Ford comes after the company had a successful year in 2023, achieving its best-ever quarter for EVs and securing best-selling vehicles in two separate electric segments. However, a report last month revealed that only around half of Ford dealers have signed up to participate in its “Model e” EV sales program. This indicates concerns surrounding EV demand that have been raised by several automakers in recent months.
In addition to its production strategy shift, Ford has also been experimenting with auto part prototypes made from olive tree waste. This demonstrates the company’s commitment to sustainability and finding innovative solutions for its vehicles.
Overall, Ford’s decision to reduce F-150 Lightning production highlights its focus on gas vehicles and its efforts to find the right balance between powertrain configurations to meet consumer demand. While the move may raise questions about the future of electric vehicles at Ford, the automaker remains optimistic about the growth of EVs and their appeal to specific consumers.