Ford staff produce the electric F-150 Lightning pickup on the automaker’s Ford Rouge Electric Vehicle Center on Dec. 13, 2022.
Michael Wayland | CNBC
DETROIT — Ford Motor plans to halt production of its all-electric F-150 Lightning from mid-November until early next 12 months to handle bloated inventories and slim losses on the pickup vehicles.
The automaker on Thursday confirmed the seven-week shutdown would happen at its Rouge Electric Vehicle Center in suburban Detroit from Nov. 18 until Jan. 6, together with beforehand deliberate vacation downtime on the finish of the 12 months.
“We continue to adjust production for an optimal mix of sales growth and profitability,” Ford stated in an emailed assertion.
The roughly 730 hourly staff on the Michigan plant can be positioned on non permanent layoff. Ford stated not all of the employees can be laid off for the whole length of the downtime.
The canceled production, which was first reported by Automotive News, comes as gross sales of all-electric automobiles haven’t grown as rapidly as many had anticipated amid increased prices and reluctant shopper adoption.
Sales of the F-150 Lightning are up 86% this 12 months, however the firm loses cash on the car and has been subsidizing gross sales. That contains a reported program providing sellers up to $1,500 for every 2024 F-150 Lightning they order from one of the automaker’s new regional electric car distribution facilities.
Ford on Monday stated its Model e EV operations are anticipated to lose about $5 billion this 12 months.
Ford executives have stated the automaker’s next-generation of EVs can be less expensive than its present technology, and that it will not launch a product except it may be worthwhile inside a 12 months.
The production slowdown represents a fall from grace for the F-150 Lightning. Ford executives comparable to CEO Jim Farley as soon as touted the car as having the identical significance because the Model T, however the firm has moved to slashing deliberate output of the pickup in half to start this 12 months.
Ford’s general days’ provide of new automobiles was 112 days as of the tip of September, in accordance to Cox Automotive. The F-150, together with electric and conventional fashions, was at 100 days. Ford’s different EV fashions — Mustang Mach-E crossover and E-Transit van — had been even increased at 128 days and 112 days, respectively, Cox stories.
Ford has a goal vary of 50 days to 60 days of provide.