Ford Motor Co. announced Friday that it will cut production of its F-150 Lightning pickup truck due to weak demand for electric vehicles.
The second-largest U.S. automaker announced it will reduce production at its Michigan Rouge Electric Vehicle Center to one shift starting April 1. In October, the company announced it would temporarily cut one of three shifts at its Michigan plant, which produces the F-150 electric vehicle. Lightning pickup truck.
The announcement is the latest sign of slowing demand for electric trucks. In October, General Motors delayed the opening of a $4 billion electric truck factory in Michigan by a year.
Ford told suppliers in December that it planned to produce about 1,600 F-150 Lightning EV trucks per week starting in January, about half the 3,200 it had previously planned. .
Ford sold 24,165 F-150 Lightning trucks in the U.S. last year, an increase of 55% from 2022, out of total U.S. F-150 sales of about 750,000 units. Ford stock rose less than 1% on Friday.
The Dearborn automaker announced Friday it will add a third worker at its Michigan assembly plant, creating nearly 900 jobs as it ramps up production of its gasoline-powered Bronco SUV and Ranger pickup.
The production cuts come as Detroit automakers are protesting that the Biden administration is going too far with proposed emissions regulations that would make 67% of new cars electric by 2032. On Friday, the Environmental Protection Agency submitted a proposal to finalize vehicle requirements to the White House for review.
In December, the Republican-led House of Representatives passed a resolution barring the EPA from moving forward with its planned auto emissions regulations, receiving a veto threat from the White House.
Former President Donald Trump, who is seeking a return to the White House, has vowed to roll back the Biden administration's electric vehicle regulations, while the White House has also given automakers government funding for new EV chargers as well as increased sales of EVs and batteries. It has touted heavy investment in production.
Ford announced Friday that the move would affect 1,400 employees at the plant. Approximately 700 people will move to the Michigan assembly plant, and others will take positions at the Rouge complex and other Michigan facilities or take advantage of special retirement programs.
The company expects global EV sales to continue increasing in 2024, but expects them to be “lower than expected.”
Ford said dozens of employees could be affected at parts plants that support production of the F-150 Lightning.
Ford lost an estimated $36,000 on each of the 36,000 EVs it delivered to dealers in the third quarter, the company announced in October. This comes after the company announced that it would be transferred to its commercial vehicle division. He cited plans to quadruple sales of gas-electric hybrid vehicles over the next five years.
Legacy carmakers have increased their focus on hybrid models over the past year, buying more hybrid models instead of all-electric models.
