Ford Motor has announced a temporary halt in production of its all-electric F-150 Lightning at the Rouge Electric Vehicle Center in Detroit, scheduled from mid-November to early January. This seven-week shutdown is designed to address oversupply issues and improve the vehicle’s profitability. The timing coincides with Ford’s planned holiday downtime, which reduces production across the company during the end of the year. Ford emphasized that this move is part of ongoing adjustments to better align sales growth with profitability.
The decision impacts around 730 hourly workers at the Michigan facility, who will be placed on temporary layoff. However, not all employees will be off work for the entire duration of the shutdown. This adjustment comes amidst slower-than-expected growth in electric vehicle (EV) sales, which have been hampered by high costs and hesitant consumer adoption. Despite an 86% increase in F-150 Lightning sales this year, Ford has been struggling with losses on the model and has resorted to offering dealer incentives to boost orders.
Ford has been providing dealers with up to $1,500 for each 2024 F-150 Lightning ordered, in an attempt to increase stock movement. The company’s Model E division, which handles EV operations, is projected to lose about $5 billion this year, underscoring the financial challenges Ford faces in the transition to electric vehicles. Executives have indicated that future EV models will be more cost-effective, with an emphasis on ensuring that new products become profitable within a year of their launch.
This production cutback marks a significant shift in Ford’s strategy for the F-150 Lightning. Once regarded by executives as a vehicle with revolutionary potential—comparable to the impact of the Model T—the F-150 Lightning’s production output has been halved for the year. This adjustment reflects a more cautious approach to EV production, as the automaker recalibrates its expectations in the face of slow consumer adoption and rising costs.
In terms of overall vehicle supply, Ford’s inventory was measured at 112 days of stock at the end of September, significantly above the company’s target range of 50 to 60 days. Specifically, the F-150 (including both traditional and electric models) had a supply of 100 days, while other EV models like the Mustang Mach-E and E-Transit van had 128 and 112 days of supply, respectively. These high inventory levels prompted the company to adjust production rates in order to better manage excess stock and avoid further financial strain from unsold vehicles.