Ford Motor has decided to temporarily stop producing its F-150 Lightning pickup truck until 2025 due to decreasing demand for electric vehicles. The company is planning to pause the manufacturing of this electric vehicle at its Rouge Electric Vehicle Plant from November 15 to January 6. Approximately 730 hourly employees will be placed on furlough during this production freeze, although not all workers will be affected for the entire duration of the halt.
The Detroit automaker expressed its goal of adapting production to achieve a balance between sales growth and profitability amid the changing market conditions. Despite the F-150 Lightning being named MotorTrend's truck of the year in 2023, Ford has faced challenges with slow sales, leading to a significant price reduction on the electric vehicle last year. Ford also faced financial setbacks with a reported $1.2 billion loss on its separate EV unit, Model e, during the third quarter, projecting total losses of $5 billion for Model e in 2024 due to industry-wide pricing pressures. Additionally, Ford made the strategic decision to cancel plans for an all-electric, three-row SUV, shifting focus towards hybrid models in a bid to accelerate customer adoption of more budget-friendly vehicles with extended driving ranges. Electric vehicle prices have been on the decline as consumer demand cools, with the average price of a new EV dropping approximately 15% from $65,000 two years ago to $56,648 in May, as reported by Kelley Blue Book.