Ford is halting production of the F-150 Lightning to adjust its growth and profitability strategy.
On Thursday, Ford confirmed the shutdown of its Dearborn plant, where the F-150 Lightning electric pickup is produced. The pause, which will begin in mid-November and continue until January 6, 2025, is intended to adjust production for an optimal balance between sales growth and profitability, according to spokeswoman Jess Enoch.
The reason for the pause isn’t related to lack of demand – sales of the Lightning are up 86 percent so far this year over last. Yet the automaker is incurring losses on the pickup with its base price of $62,995 in the U.S. Against a backdrop of price wars on electric vehicles, Ford is taking steps to limit its losses by reducing production of the Lightning, which is equipped with expensive batteries.
A loss on every sale
The simple fact is this: Ford currently loses money on every F-150 Lightning sold. So fewer trucks sold means fewer losses for the blue oval brand.
The automaker further announced that its electric vehicle division, Model e, is expected to post a loss of around $5 billion in 2024.
This decision illustrates the complexity of the transition to electric vehicles. While automakers need to adapt production to demand, they are also seeking to maximize profitability in order to invest in new technologies and offer a variety of powertrains to their customers. The reluctance of many consumers to adopt electric vehicles, due to high prices, range anxiety and other changes, complicates the situation.
The last shift of the year at the Rouge Electric Vehicle Center will take place on November 15, which means that the first day of production downtime will be Monday, November 18. The assembly line will remain idle until January 6. The seven-week break includes the planned closure for the end-of-year vacations, the week of December 23. The plant employs around 800 workers.
