Ford is cutting jobs to produce the electric F-150 Lightning and transferring workers to another production facility to make gasoline-powered vehicles.
The announcement was originally made in December 2023, and the company fell well short of its plan to produce 150,000 electric trucks per year.
Despite a 55% jump in EV truck sales, sales remained at just 24,000 units.
The cuts are due to low customer demand, and the company has cut production by approximately half. Ford's Rouge Electric Vehicle Center in Michigan has cut its usual two F-150 Lightning production shifts to one. CNBC report.
The measures affect approximately 1,400 employees, with reductions starting April 1, 2024. announced 700 of the affected workers michigan assembly plant This is where the Ford Bronco and Ford Ranger are produced.
The company also said a third shift will be introduced at its Michigan plant in summer 2024, adding an additional 900 jobs and making up a crew of 1,600. The expanded production staff will be working on new Ranger and Ranger Raptor sets for a 2024 release window.
Despite the model's poor performance, Ford CEO Jim Farley said, “We are leveraging our manufacturing flexibility to balance growth and profitability while delivering to our customers.'' “Customers love the F-150 Lightning, America's best-selling EV pickup.”
“We believe there is a bright future for certain consumer electric vehicles, especially with upcoming digitally advanced EVs and access to Tesla's charging network starting this quarter,” he added.
The Ford Bronco and Ranger suffered sales declines of 9.7% and 43.3%, respectively, in 2023, largely due to the United Auto Workers union labor strike that affected the United States.
The remaining expellees from the Rouge Electric Vehicle Center will be transferred to other nearby plants or participate in a “Special Retirement Incentive Program” that is part of the new UAW contract.
UAW President Sean Fein called the new deal with Ford a “huge victory” for the union's “stand up strike” strategy, which also includes a 25% prevailing wage increase. Furthermore, starting salaries at automakers will rise by about 68% and maximum wages by about 33%.
The strike lasted nearly six weeks and was heavily influenced by high-ranking politicians, including Sen. Josh Hawley. John Fettermanand President Donald Trump.
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