Weak EV Sales Growth Forces Ford to Reduce Production of F-150 Lightning, Cut Jobs
Ford is scaling back production of its F-150 Lightning electric pickup due to slower-than-anticipated growth in electric vehicle (EV) sales. Despite the overall increase in EV sales in the U.S., the industry is facing challenges in meeting ambitious growth targets. Many consumers are opting for hybrid vehicles rather than fully electric ones.
Approximately 1,400 workers will be affected by the reduction in F-150 Lightning production. The Rouge Electric Vehicle Center will transition to a single shift starting April 1, impacting around 700 employees who will be transferred to Ford’s Michigan assembly plant. Other workers will be assigned roles at the Rouge Complex or other facilities in Southeast Michigan. Some employees may choose to participate in the Special Retirement Incentive Program outlined in the 2023 Ford-UAW contract.
The company acknowledges that a few dozen employees at component plants supporting F-150 Lightning production may also be affected, depending on the number of workers opting for the retirement program. Ford is committed to providing placements for impacted employees within Southeast Michigan.
In response to the challenges faced in the EV segment, Ford is taking strategic measures to reallocate its workforce. On a positive note, the company announced the creation of almost 900 new jobs and the addition of a third crew at its Michigan assembly plant. This expansion aims to meet the growing demand for popular models such as the Bronco, Bronco Raptor, and the all-new Ranger and Ranger Raptor.
Ford’s decision reflects the need for automotive manufacturers to adapt to evolving consumer preferences and market dynamics in the rapidly changing landscape of electric and hybrid vehicles.
Source: Ford