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    1. Trucking

    Ford to Idle Production of F-150 Lightning

    Nov. 1, 2024
    Electric F-150 pickup truck sales growth and profitability cited for shutdown.
    David Guralnick
    Ford Motor Co. is halting production of the F-150 Lightning pickup truck starting in mid-November into early 2025 to maximize profitability.
    Ford Motor Co. is halting production of the F-150 Lightning pickup truck starting in mid-November into early 2025 to maximize profitability.

    By: Breana Noble
    Source: The Detroit News (TNS)

    Ford Motor Co. is idling its plant in Dearborn producing all-electric F-150 Lightning pickup trucks starting in mid-November into next year, the Dearborn automaker confirmed on Thursday.

    “We continue to adjust production for an optimal mix of sales growth and profitability,” spokesperson Jess Enoch said in a statement.

    U.S. Lightning sales are up 86% year-over-year, but the automaker loses money on the truck that starts at $62,995 as the industry undergoes a price war on EVs. The fewer Lightnings with their large, costly batteries Ford sells, then, the less money it’s going to lose. Ford this week said it expects Model e, its EV division, to lose about $5 billion in 2024, the low end of its previously provided guidance.

    More on electric vehicles

    The move is a look at just how complicated navigating the bumpy EV adoption curve can be. Automakers have made production decisions based on demand, but they’re also looking to maximize their profitability to continue to invest in new technologies and multiple powertrain options for customers since many remain reluctant to move into EVs because of higher prices, range anxiety and other changes that come with them.

    The Rouge Electric Vehicle Center’s last shift for the year will run Nov. 15, so the first canceled production day will be Nov. 18. The assembly line won’t start moving again until Jan. 6. The seven-week idle also includes the previously scheduled holiday shutdown the week of Dec. 23. The plant employs about 800 people.

    Automotive News was first to report on the plant idling.

    In April, the plant moved to a one-shift operation in a decision that affected 1,400 people. Hundreds of employees were able to transfer to the Michigan Assembly Plant down Michigan Avenue in Wayne where Ford at the time was expanding production of the Ranger midsize truck and Bronco SUV.

    Ford executives have promised its second-generation EVs will be less costly than its current generation, and CEO Jim Farley has said a new product won’t launch unless it can be profitable within a year. Production of the Lighting began in 2022.

    Farley on an earnings call this week said the company had reduced EV cost by $1 billion this year and decreased capacity by 25%. It lost $1.2 billion in Model e for the third quarter, though that showed improvement from the same quarter a year ago.

    The downtime also comes after Ford earlier this month launched its “Power Promise” campaign. Through the end of the year, the automaker is paying for a Level 2 home charger and its installation for customers buying or leasing a new EV.

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