Ford axes F-150 Lightning staff amid slow sales

FORD Motor Company is about to dramatically cut the hourly workforce at its F-150 Lightning plant as “slower than expected” demand and a vast stockpile of unsold vehicles begins to hit the manufacturer’s hip pocket.

 

Two-thirds of the Rogue Electric Vehicle Centre staff in Dearborn, Michigan, will be axed with half offered employment at Ford’s Wayne assembly plant – where ICE-powered Bronco and Ranger models are produced – and the other half a $50,000 handshake.

 

The news comes following a January announcement in which the American manufacturer said it would reduce production of its F-150 Lightning as demand for the model waned. At that time, it said it would temporarily cut just one of three shifts at the facility.

 

In December (2023), Ford told suppliers that it planned to cut production of the model to around 1600 units per week from January, roughly half that of its original forecast.

 

“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability,” said Ford CEO Jim Farley at the time.

 

Speaking this week, Ford spokesperson Jessica Enoch declined to offer production volume numbers for the F-150 Lightning amid the reset.

 

However, media sources in the US have noted thousands of stockpiled F-150 models at the Michigan International Speedway, a point Ford has been reluctant to pass comment on.

 

Ms Enoch said new vehicles had been held for quality review since early February and are expected to be shipped from April. Meanwhile, F-150 Lightning stock is available in dealerships for immediate purchase.

 

In a statement to members this week, United Auto Workers Local 862 president Todd Dunn said union leaders are closely monitoring all activity involving battery-electric vehicle production as the industry continues to adapt to “often unpredictable” change.

 

“The battery technology right now is kind of slowing some of the purchasing down,” he said.

 

“The Rogue Electric Vehicle Centre … is going to lay off that second crew and will not put a third crew on.

 

“Their (Ford’s) intentions were to build 180,000-plus units (annually). Right now, we are looking at 55,000 units that they are going to build.

 

“There are some things out there that are causing this – distance on battery charges, new technology that is being brought in from overseas, that technology being implemented over there already in certain design models.

 

“It (overseas models) is also showing almost double in mileage, if not a significant increase.”

 

Ford CFO John Lawler said the company is constantly adjusting purchasing decisions to address market changes.

 

Speaking at the Bank of America Securities Auto Summit, he said Ford’s electric vehicle strategy assumes brutal competition, radical change, and rethinking how things have been done in the recent past.

 

“We definitely need to work to match capacity with demand (and) demand is much slower than the industry expected when it comes to EVs,” he said.

 

“We are right sizing our capacity and the investments that we are putting into EVs, but it’s not a matter of ‘if’, it’s a matter of ‘when’ (EVs dominate the new car market).

 

“I think we are in the transition between the early adopted who were much more willing to deal with some of the ancillary items that come with EVs – charging range and things like that.

 

“We are (now) moving into the early majority, and the early majority is much less forgiving, and pricing is an issue.”

 

Mr Lawler said changes to battery technology, which allow for longer driving distance between recharging, is key to EV adoption for many buyers, and says it is something Ford and its rivals are monitoring through this “early majority” phase.

 

“The bigger the vehicle, the bigger the battery – and the battery is the most expensive thing in the vehicle. Then, the bigger the battery the more weight, the battery you need, and the less efficient the vehicle is. So, costs just spiral out of control,” he stated.

 

Further, Ford Motor Company said it is now delaying plans for a new electric pick-up model and associated three-row SUV amid slowing demand for electric vehicles.

 

The manufacturer said it is postponing production at its still-under-construction Blue Oval City facility in Tennessee from late 2025 to 2026. The facility is expected to have an annual capacity of 500,000 units and employ 6000 staff.

 

Ford is also delaying production of three-row electric SUVs at one of its Canadian facilities from 2025 to 2027.

 

“Ford values our Canadian teammates and appreciates the delay will have an impact on this excellent team. We are fully committed to manufacturing in Canada and believe this decision will help us build a profitably growing business for the long term,” said Mr Farley.

 

With Detroit Free Press, Reuters and Automotive News