Ford Motor Company plans to pause production of its all-electric F-150 Lightning at the Rouge Electric Vehicle Center in suburban Detroit from November 18 to January 6. This seven-week shutdown, which includes a scheduled holiday break, aims to address rising inventories and reduce losses associated with the electric pickup truck.
The decision to suspend production comes as the company faces challenges in the all-electric vehicle market, where growth has not met expectations due to higher costs and slow consumer adoption. Despite a significant 86% increase in F-150 Lightning sales this year, Ford has been losing money on each unit sold, leading to subsidies for dealers to encourage sales. Reports also indicate that Ford is offering up to $1,500 per 2024 F-150 Lightning ordered from its new regional electric vehicle distribution centers.
Approximately 730 hourly workers at the Michigan plant will be affected by the temporary layoff, although not all will be laid off for the full duration of the shutdown. In a statement first reported by Automotive News, the automaker emphasized its commitment to optimizing production for better sales growth and profitability.
In addition to the F-150 Lightning, Ford’s overall inventory issues reflect a broader trend in the automotive industry, with a reported supply of 112 days for new vehicles as of the end of September, according to Cox Automotive. This includes a supply of 100 days for the F-150, containing both electric and traditional models. The company’s other EV models, the Mustang Mach-E and E-Transit van, reported supplies of 128 days and 112 days, respectively. Ford has set a target range of 50 to 60 days for optimal inventory levels.
Looking ahead, Ford executives project that the company’s Model e EV operations will lose around $5 billion this year. They emphasize the need for future electric vehicles to achieve profitability within a year of launch. As the automaker adjusts its production strategy, it plans to reduce the output of the F-150 Lightning by half compared to initial projections.
