Ford (F, Financial) has announced a temporary halt in the production of its all-electric F-150 Lightning pickup truck until January to adjust production for an optimal blend of sales growth and profitability. Following the final shift on November 15, the Rouge Electric Vehicle Center near Detroit will cease operations from November 18 to January 6, affecting approximately 730 hourly workers due to layoffs.
The closure aims to recalibrate production amidst broader challenges faced by Ford's electric vehicle segment, Model e, which reported a $1.2 billion loss in the third quarter of 2024 and anticipates a full-year loss of about $5 billion. The F-150 Lightning, a centerpiece of Ford's EV expansion strategy, has encountered obstacles such as price cuts and manufacturing delays.
While Tesla's (TSLA) Cybertruck has surpassed the F-150 Lightning in sales, Ford continues to aim for a significant share in the EV market. Despite slower-than-expected growth in electric vehicle sales due to rising costs and consumer acceptance issues, Ford has delivered 22,807 units of the Lightning to date. The F-150 Lightning remains a crucial product, with Ford's Silicon Valley team working on a more affordable EV platform. However, Ford executives have stated that unless the next-generation EVs become profitable within a year, new products will not be launched.
