the staff of the Ridgewood blog
Ridgewood NJ, Ford Motor Company is hitting the brakes on its F-150 Lightning production, with a planned halt from mid-November to early January. The pause at Ford’s Rouge Electric Vehicle Center, just outside Detroit, will address inventory levels and financial losses, as the company seeks to find a profitable path forward in the evolving EV market.
Why Ford Is Pausing Production
From November 18 through January 6, Ford’s all-electric F-150 Lightning will temporarily cease production. The decision, Ford stated, is part of an “adjustment for an optimal mix of sales growth and profitability.” While production will pause, about 730 employees at the Michigan plant will be temporarily laid off, though not all for the entire seven-week period.
The F-150 Lightning has seen an impressive sales growth of 86% this year, yet Ford continues to subsidize its sales due to low consumer adoption and higher production costs. The company has even incentivized dealers with a $1,500 bonus for ordering the 2024 model through regional electric vehicle distribution centers. The EV industry’s sluggish growth, with consumers holding back due to high costs and new technology, has further strained Ford’s profitability in the EV market.
Ford’s Path to Profitability in EVs
The shutdown is part of a bigger picture: Ford’s EV operations, under the “Model e” division, are expected to lose $5 billion this year alone. Ford executives have been clear that future EV models will focus on profitability, aiming for sustainable cost reductions and targeted production. CEO Jim Farley previously called the F-150 Lightning a game-changer, likening its significance to the Model T. However, Ford has since scaled back its output plans, with production now cut by half from initial goals.
EV Supply Chain and Ford’s Strategy
The Rouge facility pause also reflects broader inventory issues, with Ford’s overall days’ supply of new vehicles reaching 112 by the end of September, including 100 days for the F-150 (both electric and traditional models) and an even higher supply for Ford’s other EVs, the Mustang Mach-E and E-Transit van, at 128 and 112 days, respectively. Ford’s ideal supply range is 50 to 60 days, according to Cox Automotive.
As Ford gears up for 2024, this production halt is expected to recalibrate its supply levels and align its EV strategies with its profitability targets.
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Glad the United Auto Workers have endorsed Kamala.
They can think about while they are laid off.
Isn’t this interesting the Villa Jones one of these pieces of shit, remember the council person said oh yeah let’s move the whole full into electric, yeah OK. I guess going back to petroleum.
I’m SHOCKED !
I can’t believe a forced Woke Agenda did not succeed.