Ford announced Oct. 31 it will temporarily halt production of its F-150 Lightning electric trucks at its Dearborn, MI, plant in response to decreased demand for electric vehicles. Production is set to pause from Nov. 15 and resume on Jan. 6, affecting around 800 workers, including 750 hourly employees, according to Automotive News.
"We continue to adjust production for an optimal mix of sales growth and profitability," Ford spokesperson Jessica Enoch said in an email.
The decision reflects a shift in Ford's EV strategy after initial high demand led the automaker to double Lightning production shortly after its launch in May 2021. At the time, overwhelming reservations prompted Ford to even pause its reservation system. However, changes in the EV landscape and mounting financial losses have driven a reevaluation.
Ford's EV division, Model e, reported a $1.2 billion loss in the third quarter, indicating ongoing challenges within the electric sector. Ford’s President and CEO Jim Farley described a “global price war” fueled by overcapacity and aggressive leasing from competitors, with as many as 150 new EV models anticipated in North America by 2026.
Facing these pressures, Ford is adjusting its battery strategy, shifting launches and modifying capacity for its battery production facility in Marshall, MI. By producing lithium iron phosphate batteries, Ford plans to leverage available tax credits to reduce costs. Additionally, Ford is prioritizing the launch of an all-electric commercial van, deferring the debut of a larger EV truck as part of this pivot.
