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Ford reduces production of electric trucks as demand for electric vehicles slows

by SuperiorInvest

Key takeaways

  • Ford is reducing production of its F-150 Lightning electric pickup truck as demand for electric vehicles (EVs) slows.
  • The automaker said it still expects to increase its electric vehicle sales in 2024, although less than previously forecast.
  • Ford also said it plans to increase production of its Bronco SUV and Ranger pickup truck.

Ford Motor (F) is reducing production of its F-150 Lightning electric pickup truck as demand for electric vehicles (EV) slows. Approximately 1,400 employees will be affected as Ford’s Rouge Electric Vehicle Center transitions to one shift starting in April.

The Big Three automaker also said it plans to increase production of its Bronco SUV and Ranger pickup truck to meet demand, with 900 new hires and 700 employees from its Rouge Complex to support a third team at its Assembly Plant. of Michigan.

“We are leveraging our manufacturing flexibility to offer customers choices while balancing our growth and profitability,” Ford Chairman and CEO Jim Farley said in a statement.

Ford was among the best-selling electric vehicle brands in the United States in 2023, with sales of its F-150 Lightning increasing 55% from the previous year. However, the company said continued growth in electric vehicle sales could be lower than originally anticipated.

The news is another blow to the prospects for electric vehicles amid a slowdown in demand. Earlier this week, Europe’s largest car rental company Sixt said it was phasing out its Tesla fleet, alongside the announcement that it will buy 250,000 Stellantis vehicles by 2026. Hertz (HTZ) also said it was reducing its Tesla (TSLA) electric vehicles due to its price reduction strategy, which reduces the prices of its used models.

Ford shares fell 0.2% to $10.96 per share at approximately 10:20 a.m. ET on Friday following the news. They have lost about 10% of their value over the past year.

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