Ford Motor Company (F, Financial) announced a temporary pause in the production of its all-electric F-150 Lightning pickup truck as a response to weak demand for electric vehicles. This decision is part of Ford's strategic adjustment in its electrification efforts.
The Rouge Electric Vehicle Center, located in the suburbs of Detroit, will stop production from November 18 to January 6, including the planned year-end holiday shutdown. This will result in the temporary layoff of approximately 730 hourly workers.
Despite previously touting the F-150 Lightning as a revolutionary model comparable to the iconic Model T, the shift signifies a strategic pivot due to increasing costs and slower-than-expected consumer adoption of all-electric vehicles.
Earlier this year, Ford decided to slow down its electrification initiatives. In August, the company canceled plans for a new full-size electric SUV and delayed the launch of the next electric version of the F-150.
Ford has faced significant losses in its electric vehicle division due to low consumer demand, prompting the company to invest more heavily in hybrid vehicles. Although sales for the F-150 Lightning have grown substantially this year, Ford still recorded losses for this model due to costs and sales subsidies.
Recently, Ford reported a $3.7 billion loss in its electric vehicle sector over the first nine months of the year, with the full-year loss expected to reach $5 billion. Executives emphasized that the cost of next-generation electric vehicles must decrease; otherwise, no new models will be introduced without achieving profitability within a year.
