Key Takeaways
- Ford is scaling back production of its electric F-150 Lightning truck as electric vehicle (EV) demand slows.
- The automaker said it still expects to grow its EV sales in 2024, though less than previously anticipated.
- Ford also said it’s planning to raise production of its Bronco SUV and Ranger pickup.
Ford Motor (F) is scaling back production of its electric F-150 Lightning truck as electric vehicle (EV) demand slows. About 1,400 employees will be impacted as Ford’s Rouge Electric Vehicle Center transitions to one shift starting in April.
The Big Three automaker also said it plans to raise production of its Bronco SUV and Ranger pickup to meet demand, with 900 new hires and 700 employees from its Rouge Complex to support a third crew at its Michigan Assembly Plant.
“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability,” said Ford President and CEO Jim Farley in a release.
Ford was among the best-selling EV brands in the United States in 2023, with sales for its F-150 Lightning up 55% from a year earlier. However, the company said that continued growth in EV sales could be lower than originally forecast.
The news is another blow to the outlook for EVs amid a slowdown in demand. Just earlier this week, Europe’s largest car rental company, Sixt, said it was phasing out its Tesla fleet, along with an announcement that it will purchase 250,000 vehicles from Stellantis by 2026. Hertz (HTZ) also said it was scaling back its Tesla (TSLA) EVs due to its price cut strategy, which lowers the prices of its used models.
Ford shares were down 0.2% at $10.96 per share as of about 10:20 a.m. ET Friday following the news. They’ve lost close to 10% of their value over the past year.