Ford is hitting the brakes on production of its F-150 Lightning electric pickup truck, pausing assembly for nearly two months starting in mid-November. This decision comes amid a challenging landscape marked by declining demand, intensifying competition, and ongoing losses in the company’s electric vehicle (EV) sector.
A Ford spokesperson emphasized the company's strategy, stating, “We continue to adjust production for an optimal mix of sales growth and profitability,” reflecting the need to recalibrate amidst evolving market dynamics. This move follows a notable shift in the electric vehicle market, where the Tesla Cybertruck has recently outpaced Ford's popular Mach-E, securing its place as the third best-selling EV in the United States. Furthermore, General Motors has overtaken Ford in electric vehicle sales for the third quarter, with GM delivering 32,095 EVs compared to Ford's 23,509.
In a recent earnings call, Ford projected its Model e revenue to reach $1.2 billion for the year, despite anticipating losses of around $5.5 billion. Although these figures are slightly lower than previous estimates, they still reflect a challenging fiscal landscape for Ford's EV segment, which is reported separately from its traditional Ford Blue gas-powered vehicle line and the Ford Pro commercial business.
The F-150 Lightning is manufactured at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan. Production will halt on November 15 and remain closed until January 6, 2025. This pause includes the customary holiday break starting December 23. This decision follows earlier staff reductions at the plant, which saw a one-third cut to its workforce, and arrives just before the U.S. elections, where EV government support has become a key topic, especially in swing state Michigan.
In light of the declining demand for EVs and escalating production costs, Ford announced in August that it would postpone the development of an electric three-row SUV and a next-generation EV pickup. A year ago, the automaker had already scaled back its production targets for the F-150 Lightning to better align with market demand.
During this week’s earnings call, Ford CEO Jim Farley highlighted the company’s strategic pivot toward hybrid vehicles, noting, “Most of our competitors don’t offer hybrid on an F-150 or a Maverick. This has been a fantastic revenue opportunity for us, and we frankly can’t keep up with the demand.” Farley expressed enthusiasm for expanding hybrid offerings across Ford’s lineup, signaling a shift towards exploring more partial electric solutions.
As Ford navigates this transitional phase, the focus remains on balancing production with profitability while adapting to the rapidly changing EV landscape. The coming months will be crucial for the automaker as it seeks to reclaim its footing in a fiercely competitive market.
