Ford is temporarily halting production of its F-150 Lightning electric pickup truck at its Rouge EV center in Michigan starting in mid-November. This decision comes as a result of slower-than-expected demand for the vehicle, leading the company to adjust production for a better mix of sales growth and profitability.
Earlier this year, Ford made adjustments to its workforce at the Rouge Electric Vehicle Center, reducing it by one-third. However, no job cuts were made as workers were either reassigned or offered retirement packages. Approximately 700 workers were transferred to the Michigan Assembly plant, while another 700 were given the option to retire or join the team building the Bronco and Ranger models in Michigan.
The facility, which had been running three crews working two shifts, saw a reduction to one crew working one shift in April. Now, Ford is preparing to pause production at the Rouge EV plant for several weeks starting in mid-November.
This production halt aligns with Ford’s strategy to optimize its sales growth and profitability. The pause will commence after the workday on November 15, with production scheduled to resume on January 6, 2025. The pause will also include the holiday break week, starting December 23, at all US Ford plants.
Ford’s decision to pause production comes after being overtaken by crosstown rival GM in US electric vehicle sales last quarter. GM sold a record 32,095 EVs in Q3, surpassing Ford’s sales of 23,509 electric models. GM now leads in US EV sales for the first nine months of the year, with 70,450 EVs sold compared to Ford’s 67,689.
The F-150 Lightning faces increasing competition from vehicles like Tesla’s Cybertruck, the Chevy Silverado EV, and the GMC Sierra EV. Tesla’s Cybertruck was the third best-selling EV in the US in Q3, with 16,692 models sold, while Ford sold 7,162 F-150 Lightnings in the same quarter.
To attract more buyers, Ford is offering a “Power Promise” program, which includes a free Level 2 home charger and covers the cost of standard installation for EV buyers. This initiative aims to showcase the benefits of driving an EV, such as waking up to a fully charged vehicle every morning.
Despite Ford’s recent Q3 revenue and EPS beating estimates, the company’s Model e EV unit reported a $1.2 billion loss last quarter. Ford’s EV business has accumulated a $3.7 billion loss in the first nine months of the year, attributed to competitive market dynamics and industry-wide pricing pressure.
CEO Jim Farley mentioned that tough actions have been taken to establish an advantage in upcoming areas, including next-gen EVs and software. Ford is gearing up to release a mid-size electric pickup in the second half of 2027 to compete with Chinese OEMS building in Mexico.
Ford’s plans to produce LFP batteries in Michigan by 2026 are expected to help reduce costs and improve competitiveness. With a focus on regaining leadership in the EV market, Ford’s California-based “skunkworks” team has over-delivered on a new low-cost platform, positioning the company for future success.
