Ford Hits the Brakes on Lightning Production in Response to Market Shifts

Ford is putting a temporary halt to the production of its F-150 Lightning electric pickup trucks at its Rouge Electric Vehicle Center in Dearborn, Michigan. The pause, scheduled to start on November 15, will last until January 6, 2025, which includes the usual holiday break week starting December 23. This decision comes as Ford is facing decreased demand and increased competition in the electric vehicle (EV) market. The automaker has been grappling with losses in its EV business, with projected losses of about $5. 5 billion for this year. Despite these challenges, Ford expects its Model e revenue to reach $1. 2 billion by the end of the year. The Model e division focuses solely on Ford's EV activities, separate from its Ford Blue gas-powered cars and Ford Pro commercial vehicles.

The rise of competitors like Tesla has added pressure to Ford's EV operations. The Tesla Cybertruck has surpassed Ford's Mach-E to become the third best-selling EV in the U. S. Additionally, General Motors outpaced Ford in EV sales during the third quarter, selling 32, 095 electric models compared to Ford's 23, 509. In response to weakening EV demand and escalating production costs, Ford has already cut jobs and delayed plans for new EV models. Earlier this year, the company reduced staff at the Rouge Electric Vehicle Center by one-third. It has also postponed the production of an electric three-row SUV and a next-generation EV pickup. Interestingly, Ford's CEO, Jim Farley, has expressed a stronger focus on hybrid vehicles. During a recent earnings call, Farley highlighted that many competitors do not offer hybrids for vehicles like the F-150 or Maverick, which has been a substantial revenue driver for Ford. This shift has encouraged the company to explore more hybrid and partial electric solutions across its lineup.

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