Ford is set to reduce its hourly workforce at the factory responsible for manufacturing the Ford F-150 Lightning. This decision comes in response to a slowdown in the sales of electric vehicles (EVs). Ford had initially scaled back production of the F-150 Lightning electric pickup earlier in the year due to lower-than-anticipated growth in EV sales.
Despite the overall growth in EV sales in the United States, the rate of growth has not met the industry’s optimistic projections. Consequently, many consumers are opting for hybrid vehicles instead of fully electric ones. Last year, Ford managed to sell a little over 24,000 units of the Lightning, marking a 55% increase from the previous year. However, recent reports indicate a decline in sales momentum, with dealers reporting sluggish sales and increasing inventories of the electric truck, which has a base price of just under $50,000.
As a result of these market dynamics, Ford plans to downsize its hourly workforce at the Rouge Electric Vehicle Center in Dearborn, Michigan. Jessica Enoch, a spokesperson for Ford, revealed that out of the 2,100 workers comprising three work crews at the Dearborn facility, only a third will remain. Ford intends to transfer 700 workers to the Michigan Assembly Plant in Wayne, where they will be involved in manufacturing the Bronco and Ranger models. The remaining 700 workers will have the option to either accept a retirement package negotiated during last year’s discussions with the United Auto Workers or to seek reassignment within southeast Michigan. Additionally, Ford is reportedly expanding operations at the Michigan Assembly Plant by adding a third crew.
This move by Ford underscores the company’s response to the shifting landscape of the automotive market, particularly in terms of EV adoption and consumer preferences. By reallocating resources and adjusting its workforce, Ford aims to navigate these challenges while maintaining its competitive edge in the industry.
Source: Associated Press
