The production of Ford's electric F-150 Lightning will be temporarily halted until 2025.
- Ford will temporarily stop manufacturing the F-150 Lightning from November to early next year to reduce excess inventory and minimize losses.
- The shutdown will occur from November 18th to January 6th, including the previously scheduled holiday break at the end of the year.
- On Monday, Ford announced that it anticipates its Model e electric vehicle operations to incur a loss of approximately $5 billion this year.
The company intends to temporarily stop manufacturing its all-electric F-150 Lightning from mid-November until early next year to address inventory overstocking and narrow losses on the pickup trucks.
The Rouge Electric Vehicle Center in suburban Detroit will undergo a seven-week shutdown from Nov. 18 to Jan. 6, including holiday downtime at the end of the year, as confirmed by the automaker on Thursday.
Ford stated in an emailed statement that they are still making changes to their production in order to achieve the best balance between increasing sales and maintaining profitability.
The canceled production, initially reported by Automotive News, coincides with the slow growth of all-electric vehicle sales, despite higher costs and consumer hesitancy to adopt them.
Despite a 86% increase in sales of the F-150 Lightning this year, the company is losing money on the vehicle and has been subsidizing sales through a program that offers dealers up to $1,500 for each 2024 F-150 Lightning they order from one of the automaker's new regional electric vehicle distribution centers.
On Monday, Ford announced that it anticipates its Model e EV operations to incur a loss of approximately $5 billion this year.
Ford executives have stated that the next generation of EVs will be less expensive than the current one, and they won't launch a product unless it can be profitable within a year.
The F-150 Lightning, once hailed as a crucial vehicle by Ford executives including CEO Jim Farley, is now facing a decline in production as the company plans to cut output in half this year.
According to Cox Automotive, Ford's overall days' supply of new vehicles was 112 days as of the end of September. The F-150, including electric and traditional models, was at 100 days. Ford's other EV models — Mustang Mach-E crossover and E-Transit van — were even higher at 128 days and 112 days, respectively, Cox reports.
Ford has a target range of 50 days to 60 days of supply.
Business News
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