Ford Motor has announced plans to suspend production of its all-electric F-150 Lightning pickup truck for seven weeks after massively scaling back its EV plans.
The shutdown will occur at the Rouge Electric Vehicle Center near Detroit from November 18, until January 6, as the American automaker cited the need to address high inventories and narrow losses as reasons for the production halt.
This decision comes amidst slower-than-expected growth in electric vehicle sales, with Ford’s Model e electric vehicle operations projected to lose about $5billion (£3.87billion) this year.
The F-150 Lightning, once touted by Ford executives as being as significant as the Model T, has faced challenges in the competitive EV market.
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Ford said it would look for sales growth and profitability
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A spokesperson for Ford said: “We continue to adjust production for an optimal mix of sales growth and profitability.”
The production pause will affect approximately 730 hourly employees at the plant. However, Ford noted that not all workers will be furloughed for the entire duration of the shutdown.
This move reflects broader challenges in the EV market after Ford’s Model e unit reported a $1.2billion (£929million) loss in the third quarter of this year.
Ford CEO Jim Farley has emphasised the importance of reducing production costs to address slowing EV sales growth.
The automaker’s inventory levels have risen significantly, with the F-150, including both electric and traditional models, at 100 days’ supply as of the end of September. This far exceeds Ford’s target range of 50 to 60 days’ supply.
The Ford F-150 Lightning has a starting price of $62,995 (£48,782), although American motorists can see a potential $7,500 (£5,807) saving after the Federal Tax Credit.
The F-150 Lightning FLASH model has an impressive 320-mile battery range, as well as a 0-60mph time of less than four seconds.
Ford has implemented several strategic shifts in response to the challenging EV market including slashing prices for the F-150 Lightning by thousands of dollars to boost sales.
Additionally, Ford has scrapped plans for an all-electric, three-row SUV to focus on hybrid models.
Ford is also offering any motorist who purchases or leases an electric vehicle a complimentary home charger and standard installation.
According to Kelley Blue Book, the average price of a new EV in May was £44,280, down roughly 15 per cent from two years earlier.
Despite challenges, Ford’s F-150 Lightning sales have shown growth, with sales of the electric pickup more than doubling to 7,100 units in the third quarter of 2023.
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Ford CEO Jim Farley has continued to back the transition to EVs
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However, this figure represents just 3.6 per cent of all F-Series pickup sales. Overall, Ford-brand EV sales in the United States are up 45 per cent this year.
Ford currently offers three electric vehicles in the UK. This includes the £43,330 Mustang Mach-E, the £45,875 Explorer and the new £48,075 Capri.