Dive Brief:
- Ford is reducing production of the electric F-150 Lightning pickup to a single shift at its Rouge Electric Vehicle Center in Michigan starting April 1, the automaker announced in a Friday press release.
- Around 1,400 employees will be impacted at the automaker’s EV factory but will be offered other roles at nearby Ford facilities in Michigan.
- Ford originally planned to triple Lightning production by last fall from 50,000 to 150,000 vehicles a year, but demand for the electric pickup has declined.
Dive Insight:
In addition to cutting Lightning production, Ford is adding a third shift to increase production of the Bronco and Bronco Raptor SUVs and the new Ranger and Ranger Raptor pickups. The production increase will create roughly 900 new jobs at Ford’s Michigan Assembly Plant.
“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability,” said Ford President and CEO Jim Farley in a statement.
Of the 1,400 workers impacted by the decision to cut Lightning production, roughly half will transfer to Ford’s nearby Michigan Assembly Plant. The remaining workers will be placed in roles at the Rouge Complex or other Ford facilities in Southeast Michigan, according to Ford.
Workers not willing to transfer can also take advantage of the Special Retirement Incentive Program agreed to in Ford’s 2023 labor contract with the United Auto Workers union, Ford said. The automaker also said that a few dozen employees could be impacted at plants supplying parts for the F-150 Lightning. These workers will also be offered other roles at nearby Ford facilities.
In its press release, Ford said the company is reducing F-150 Lightning production to achieve "the optimal balance of production, sales growth and profitability." It highlighted that the F-150 Lightning was the top-selling electric pickup in the U.S. and that Ford expects global EV sales to continue to grow in 2024, "though less than anticipated."
Ford unveiled the F-150 Lightning on May 19, 2021, with a starting MSRP of $39,974 for the base Pro version. But the automaker faced “significant material cost increases and other factors,” leading to a series of price increases.
The first price hike for the Lightning was in August 2022, when Ford raised prices by $6,000 to $8,500, depending on the model. In October 2022, Ford raised the price of the Lightning Pro by an additional $5,000. As of April 2023, Ford had raised the Lightning Pro base price by $20,000 to $59,974.
But in July 2023, Ford reduced Lightning prices by nearly $10,000 on some models amid lower demand, EV price wars and growing competition from Rivian and Tesla.
Ford sold 24,165 Lightning pickups last year, well below its planned production capacity. Last summer, Ford expected its Rouge Electric Vehicle Center to produce 70,000 Lightning pickups in 2023.
