In order to produce more Broncos and Rangers, it is reallocating resources.
As a result of demand that is lower than anticipated, Ford has announced that it would reduce manufacturing of the F-150 Lightning. Beginning on April 1st, the Rouge Electric Vehicle Center, which is located in Michigan and is responsible for the production of the electric pickup, will go from having two production shifts to having only one. There will be approximately 1,400 workers that will be affected by this.
It has been said by the automobile manufacturer that around half of those will be transferred to its Michigan Assembly Plant. This plant is currently in the process of assembling a third crew in order to satisfy the demand for additional Bronco and Bronco Raptor vehicles, as well as the new Ranger and Ranger Raptor. For the purpose of filling that shift, the corporation is hiring an additional 900 people.
The remaining employees of the F-150 Lightning who were affected will be moved to alternative positions in the Rouge plant or at other Ford factories located in the region. However, this is only the case if they accept an offer of retirement incentive.
The amount by which Ford is decreasing production of the F-150 Lightning was not disclosed by the company. In contrast, the fact that output will decrease by almost half as a result of switching from two shifts to one shift is consistent with the findings of recent investigations. It was reported by CNBC that Ford intended to reduce production from approximately 3,200 units per week to 1,600 units per week.
In 2023, the company retooled the Rouge factory so that it could produce up to 150,000 F-150 Lightning vehicles annually. This capability was not available before. On the other hand, demand has not kept pace. Despite the fact that sales of the electric vehicle increased by 55 percent in the previous year, it has not been selling as swiftly as it did in the past.
The company has stated that it anticipates electric vehicle sales will continue to increase across the globe in the current year, but at a slower rate than was initially projected. In light of this, as well as the fact that Ford is currently working on developing electric vehicles of the next generation, the firm has made the decision to reduce the manufacturing of the F-150 Lightning for the foreseeable future.
This is not the only electric vehicle that Ford has reduced its production of. In November, it reduced the number of Mustang Mach-Es that were manufactured.
The flexibility of our manufacturing process is being utilized to provide clients with a variety of options while maintaining a healthy balance between our growth and profitability. According to Jim Farley, President and Chief Executive Officer of Ford, “Customers adore the F-150 Lightning, which is America’s best-selling electric pickup.” We anticipate that electric vehicles will have a prosperous future for some consumers, particularly with the introduction of our digitally sophisticated electric vehicles and the commencement of access to Tesla’s charging network in the current quarter.