Ford is reducing F-150 Lightning electric pickup production due to lower-than-expected growth in electric car sales.
While EV sales are increasing in the United States, the rate falls far short of the industry’s optimistic timeline, and many consumers are switching to hybrid vehicles instead.
The company sold just over 24,000 Lightning last year, a 55% increase from 2022. However, dealers are reporting sluggish sales and increased inventories for the electric truck, which starts at slightly under $50,000.
Ford Cuts Production Of F-150 Lightning Pickup On Weaker-Than-Expected Electric Vehicle Sales Growth
According to Motorintelligence.com, total electric car sales increased 47% to a record 1.19 million units last year. The EV market share increased from 5.8% in 2022 to 7.6% last year. However, EV sales growth slowed near the conclusion of the year. In December, they jumped 34%.
The company claimed that the change to lower F-150 Lightning manufacturing will affect approximately 1,400 workers, with the Rouge Electric Vehicle Centre shifting to a single shift beginning April 1. Approximately 700 people will be transferred to Ford’s Michigan Assembly Plant, while others will be assigned positions in the Rouge Complex or other Southeast Michigan facilities. Some employees will likely take advantage of the Special Retirement Incentive Programme outlined in the 2023 Ford-UAW agreement.
Ford Cuts Production Of F-150 Lightning Pickup On Weaker-Than-Expected Electric Vehicle Sales Growth
“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability,” Ford CEO Jim Farley said in a statement Friday.
Ford stated that depending on how many people apply for the retirement programme, a few dozen employees at component plants supporting F-150 Lightning production may be affected. The corporation said it would arrange placements for impacted employees in the Detroit area.
Ford also announced Friday that it is adding nearly 900 additional positions and a third crew to its Michigan assembly facility to meet demand for the Bronco SUV and Ranger midsize pickup truck.
Ford Cuts Production Of F-150 Lightning Pickup On Weaker-Than-Expected Electric Vehicle Sales Growth
The F-150 Lightning pickup is Ford’s upcoming all-electric truck, set to redefine the traditional pickup landscape. Boasting impressive specs, such as a targeted 300-mile range and a starting price under $40,000, it aims to appeal to both environmentally conscious consumers and truck enthusiasts alike.
With lightning-fast acceleration and a spacious interior, the F-150 Lightning promises to deliver on both performance and practicality. Scheduled for release in spring 2022, it’s poised to make a significant impact in the electric vehicle market.
SOURCE – (AP)
