Ford Motor Company (NYSE:F) announced Friday that it is reducing the production of its electric pickup truck the F-150 Lightning to match customer demand and maximize profitability.
The automaker said about 1,400 employees will be impacted as its Rouge Electric Vehicle Center transitions to one shift on April 1.
About 700 of these employees will be transferred to Ford’s Michigan Assembly Plant. Others will be placed at the Rouge Complex or other facilities in Southeast Michigan or will be offered the Special Retirement Incentive Program agreed to in the 2023 Ford-United Auto Workers contract.
Several dozen employees could also be impacted at component plants which support F-150 Lightning production.
“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability,” Ford CEO Jim Farley said.
“Customers love the F-150 Lightning, America's best-selling EV pickup.”
Ford continues to expect growth in global EV sales in 2024 but “less than anticipated.”
“We see a bright future for electric vehicles for specific consumers, especially with our upcoming digitally advanced EVs and access to Tesla's charging network beginning this quarter,” Farley said.
Shares of Ford traded modestly higher, up 0.1% at US$11 before the opening bell in New York on Friday.