Ford is drastically reducing its production ambitions for the F-150 Lightning in an effort to match the source to demand. The automaker will shrink the truck’s production line, cutting its production targets by about two-thirds.
The Rouge Electric Vehicle Center in Dearborn, Michigan, planned to have up to 3 shifts led by approximately 2,100 employees. As of April 1, only one-third of them will remain on site, while 700 will move to Ford’s plant in Wayne, Michigan. The remaining personnel will either get advantages from a retirement program or settle for a reassignment to southeast Michigan.
“The Rouge Electric Vehicle Center, which we call REV-C, is preparing its second shift. Now they’re going to fire that second team and not draft the third,” said Todd Dunn, president of UAW Local 862, according to Freep. “Their intention was to build more than 180,000 units. Currently, we are looking to build 55,000 units.
Ford confirmed the plant’s production targets, but said production changes would result in job losses for employees. The company added that dealers across the country have F-150 Lightning in inventory and more are coming soon, as many new vehicles have gone through quality testing. Review since February 9.
Read: Ford halts F-150 Lightning EV deliveries due to unspecified issue
Separately, Ford Chief Financial Officer John Lawler said the company is working hard to match production to demand for electric vehicles. He said that, like many other automakers, Ford expects electric vehicles to grow faster than they have.
“We’re scaling up our capacity and the investments we’re making in electric vehicles. But it’s not a question of ‘if,’ it’s a question of ‘when,'” Lawler said. “We have reached the first majority. And the first majority is much less lenient and costs are an issue.
But costs will have to be kept under control, he added. The Ford Model e, the automaker’s electric vehicle unit, will have to “stand on its own. “Currently, the department costs the automaker billions and relies heavily on profits from its internal combustion units and advertising.
Succeeding may not be a walk in the park for Ford’s electric vehicle division. Lawler said the company’s electric strategy is coming at a very difficult time and that it is contemplating radical changes to the way it has built cars so far.