According to recent reports, Ford is set to reallocate approximately 1,400 workers at a factory in Michigan that focuses on production of the flagship electric pickup truck, the F-150 Lightning. Reportedly, the employees will either take retirement packages or be shifted to other jobs in the company.
The changes, announced at the start of this year, are set to take effect on Monday, per Ford spokeswoman Jessica Enoch. The auto manufacturer started the year by reducing production levels of the F-150 Lightning to align with consumer demand amid sales falling short of expectations.
Notably, EV sales are still growing as the adoption of battery-powered cars continues to increase year over year. However, current sales have not met the lofty targets set by the industry in recent years, where many car buyers opt to purchase hybrids instead.
Ford only sold roughly 24,000 F-150 Lightnings in 2023, representing a 55% increase from the prior year. Despite this figure, dealerships report a slowdown in sales and rising inventories for the electric pickup truck.
“Ford is reducing production of F-150 Lightning, the top-selling electric pickup in the U.S., to achieve the optimal balance of production, sales growth and profitability. Ford expects continued growth in global EV sales in 2024, though less than anticipated, and is preparing to launch next-generation EVs,” according to an official statement from Ford earlier this year.
Despite the pullback in the company’s EV lineup, Ford’s leadership remains bullish on electric cars over the long run, noting that it is tapping on “manufacturing flexibility” to meet the demands of its consumer base. However, the company hinted at new EV technology that it would be rolling out in the near future.
“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability. Customers love the F-150 Lightning, America’s best-selling EV pickup,” explained Ford President and CEO Jim Farley. “We see a bright future for electric vehicles for specific consumers, especially with our upcoming digitally advanced EVs and access to Tesla’s charging network beginning this quarter.”
While consumers turn away from the Lightning, there is heightened demand for the popular Ford Bronco. Ford noted that it is creating roughly 900 new jobs and adding more crews to increase production for the gas-powered sport utility vehicle.
The American Tribune reported last year on calls from the dealerships nationwide for President Biden to “tap the brakes” on his EV agenda amid low consumer demand for the battery-powered vehicles. A letter addressed to Biden explained that the influx of EVs is far outpacing the slower-than-expected consumer adoption.
“Mr. President, it is time to tap the brakes on the unrealistic government electric vehicle mandate. Allow time for the battery technology to advance. Allow time to make BEVs more affordable. Allow time to develop domestic sources for the minerals to make batteries. Allow time for the charging infrastructure to be built and prove reliable. And most of all, allow time for the American consumer to get comfortable with the technology and make the choice to buy an electric vehicle,” the letter read in part.
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