Ford will reportedly suspend its assembly lines for the F-150 Lightning electric truck as unexpectedly low sales are causing inventory to build up at dealers around the country. According to AutomotiveNews, who spoke with individuals close to the matter, Ford will be idling the F-150 Lightning EV’s plant beginning in mid-November and until the 2025 year, resulting in a seven-week-long hiatus.
The last of the F-150 Lightnings for 2024 will roll off the line by November 15, by which time the shutdown will commence and put workers on early holiday leave until the new year. In addition to notifying plant officials and staff, Ford also confirmed the move with major suppliers. Production is scheduled to resume on January 6.
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Ford Adjusts EV Production Due To Slow Sales
This latest production shutdown comes as a byproduct of slowing electric vehicle demand and automakers like Ford over-anticipating the sales of EVs after aggressive investments in electric cars over the past couple years. EVs haven’t been flying off the lots like automakers expected, in lieu of governments, domestically and foreign, demanding an increase in electric vehicle sales as they scheduled bans on the sale of ICE-powered cars by 2035 to try and ween buyers off of depending on fossil-fueled vehicles.
According to various sources and Cox Automotive, a major automotive industry data and consulting firm, Ford has around a 100-day supply of F-150s overall in the U.S. market, though the firm didn’t specify how many of those were Lightnings. Although demand for EVs is slowing, overall vehicle sales are also reportedly slowing for a variety of reasons.
Some of it may be attributed to the fact that it’s an election year, which has consumers being more conservative with their spending amid concerns for the economy following the election, as well as increased costs of living, increased costs for new vehicles, and other financial woes affected by pandemic-induced inflation. In addition to consumers, companies like major automakers are also feeling the squeeze financially.
“We continue to adjust production for an optimal mix of sales growth and profitability,” Ford told AutomotiveNews in an official statement.
The F-150 Lightning isn’t the only victim of slowing EV demand as Ford decreased its overall EV production goals earlier this year. The reduction dropped the assembly line shifts down to one, affecting nearly two-thirds of the jobs at the company’s main EV plant, the Rogue Electric Vehicle Center, in Dearborn, Michigan. This latest shutdown will reportedly put around 750 hourly workers on early holiday leave, in the same statement issued to AN by Ford.
This production suspension comes at an interesting time, particularly when sales of the F-150 Lightning increased over the past year by around 86%. However, it faced fierce competition when Tesla launched and began selling its Cybertruck earlier this year, ripping the F-150 Lightning’s title as the best-selling all-electric pickup.
Earlier this year, Ford acknowledged that EV sales aren’t where they expected to be and thus, backpedaled on its aggressive EV initiatives and plans, and reassessed by refocusing its investments back into ICE and even gas-electric hybrid technology. Long and inconvenient charging times, unreliable infrastructure, and EV battery range anxiety continue to be points of concern for electric vehicle buyers.
Despite the challenges, Ford’s CEO Jim Farley noted in a recent press conference about its near-future strategy included a reassessment of its “trajectory” as it continues to figure out how to scale its EV business. Though he didn’t share details or specifics as it apparently remains to be a work in progress, particularly as the company tries to reduce its overall financial losses on its major investments in EVs.
Source: AutomotiveNews
