Ford Motor’s electric vehicle sales are running out of juice as the company plans to slash production of its all-electric F-150 Lightning in April “to achieve the optimal balance of production, sales growth and profitability.”
Beginning on April 1, approximately 1,400 employees will be impacted at the Rouge Electric Vehicle Center in Dearborn, Michigan, Ford wrote in a statement on Friday.
“Roughly 700 will transfer to Michigan Assembly Plant and the others will be placed in roles at the Rouge Complex or other facilities in Southeast Michigan, or take advantage of the Special Retirement Incentive Program agreed to in the 2023 Ford-UAW contract,” the statement continued.
“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability. Customers love the F-150 Lightning, America’s best-selling EV pickup,” Ford President and CEO Jim Farley said.
The planned production cut for the Lightning was first discussed in a planning memo to suppliers obtained by Automotive News in early December. The memo pointed out “changing market demand” for the cuts.
“We’ll continue to match production with customer demand,” a Ford spokeswoman said last month.
This development emerges amid numerous indications that the EV market in the US is slowing.
“EV demand next year could be lower than expectations,” Lee Chang-sil, chief financial officer at South Korean battery maker LG Energy Solution, said several months ago.
Also, 3,900 auto dealers wrote a letter to President Biden, warning:
“Electric vehicles are stacking up on our lots which is our best indicator of customer demand in the marketplace.”
Plus, high auto loan rates and vehicle prices add to affordability concerns. Folks don’t want $1,000 payments for vehicles that come with “range anxiety.”