Ford Motor announced on Friday that it will be lowering the number of F-150 Lightning pickup trucks it produces because the demand for EVs hasn't been as high as expected.
Beginning on April 1, America's second-largest automaker said that it would only be producing one shift at its Michigan Rouge Electric Vehicle Center. It said in October that it would temporarily eliminate one of the three shifts at the F-150 Lightning electric pickup truck's Michigan factory.
According to a statement from Ford CEO Jim Farley, in order to give customers options while maintaining a balance between growth and profitability, they are making use of their manufacturing flexibility.
The statement is the most recent indication of the EV truck market's declining demand. In October, General Motors decided to postpone by a year the inauguration of a $4 billion electric truck factory in Michigan.
In December, Ford informed its suppliers that it would only be producing around 1,600 F-150 Lightning EV trucks a week starting in January, about half of the 3,200 it had originally planned.
Out of around 750,000 F-150s sold in the US last year, 24,165 were Ford Lightning trucks, a 55% increase over 2022. Midday Friday trading saw a 1% increase in Ford shares.
Ford said in 2022 that it would double the production of electric trucks and said in August that the plant that makes the F-150 Lightning could reach an annualized production rate of 150,000 vehicles by October.
In order to boost output of gas-powered Bronco SUVs and Ranger trucks, the Dearborn carmaker announced on Friday that it would bring on a third crew and add around 900 jobs to its Michigan assembly facility.
This production reduction on the F-150 Lightning comes with a protest by Detroit automakers that the Biden Administration's plans to employ emission rules, which would make electric vehicles account for 67% of all new cars by 2032, are too drastic. The Environmental Protection Agency (EPA) sent the proposal to finalize vehicle regulations to the White House on Friday for review.
The Republican-led US House voted in December to prevent the EPA from implementing the proposed auto emissions regulations, after which the White House issued a veto threat.
Former President Donald Trump, who is running for office again, has promised to undo the EV regulations from the Biden administration. In the meantime, the White House has highlighted the manufacturers' significant investments in EV and battery production, as well as government financing for new EV charging stations.
The change, according to Ford, will affect 1,400 employees at the factory. Approximately 700 will be moved to its Michigan Assembly Plant. Others will be assigned positions at the Rouge Complex or other Michigan facilities, or they may choose to take advantage of a special retiring program.
Global EV sales are expected to climb in 2024, according to the company, but less than expected.
Ford said that a few dozen workers would be affected at component facilities that support the production of the F-150 Lightning.
Ford announced in October that an estimate of $36,000 was lost on each of the 36,000 EVs Ford sent to dealers within the third quarter, after saying it would slow down the ramp-up of financially unsound EVs, redirecting spending to its commercial vehicle section and pointing to its intentions to quadruple sales of gas-electric hybrids in the following five years.
Due to consumers' preference for hybrid vehicles over all-electric ones, traditional automakers have increased their emphasis on hybrid cars during the past year.