On October 13, 2023, Ford announced its plan to temporarily reduce one of the three shifts at the Rouge Electric Vehicle Factory in Michigan, where the F-150 Lightning is produced. This measure will take effect on Monday and will impact approximately 700 jobs. Ford claimed that this reduction has no connection to the UAW strike.
This move comes just two days after United Auto Workers (UAW) union members expanded their strike to the largest factory in Kentucky during contract negotiations. Reuters analyzed that several constraints, including supply chain issues, are behind the reduction. The duration of the production cutback has not been disclosed, but it was reported that the affected shifts will rotate.
Reuters also reported that Ford is currently processing and delivering vehicles put on hold for quality checks after resuming production in August. Last Friday, the Wall Street Journal reported that a UAW official had stated early that Ford was considering reducing shift work at the Lightning factory due to weak demand.
Ford’s layoffs come as the third-quarter sales of the F-150 Lightning decreased by 46% compared to last year. Ford sold 3,503 units in the third quarter, compared to 6,464 units during the same period the previous year and 4,466 units in the second quarter.
In December of last year, Ford added a third shift to meet the goal of producing 150,000 electric trucks. In July, Ford CEO Jim Farley stated that the short-term adoption of electric vehicles would be slower than expected, pushing the target of producing 600,000 electric vehicles to next year.
Earlier this week, Ford introduced a new incentive that can save up to $7,500 when purchasing or leasing a Lightning model. Combined with a tax deduction, a discount of up to $15,000 is possible. Ford also added a new Flash trim that integrates features of the XLT and Lariat models for the 2024 lineup. The F-150 Lightning Flash, priced from $70,000, offers a maximum driving range of 320 miles, a tech-centric interior, and a heat pump.
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