Job cuts at Ford’s F-150 Lightning factory

Ford is eliminating two out of three production teams at its F-150 electric plant, forcing 1,400 people to retire or move to another factory in the Detroit area.

Sales are sharply declining.
Ford Motor Co. announced on Friday that it is cutting two-thirds of the jobs at its Michigan plant that assembles the F-150 Lightning, thus slowing down production of this electric pickup. In April, Ford will force 1,400 people to retire or move to other facilities as the plant transitions to a single daily shift, the automaker said.

A quarter of work reduced since October.
Since October, the site has been operating on a two-shift, three-team model, with a rotating team of workers on temporary layoffs. Ford said that 700 people, about half of the affected workers, will be transferred to the nearby Michigan Assembly Plant, where a third shift will be added to increase production of the Bronco SUV and Ranger pickup. These 700 people will join 900 new hires for a total of 1,600 workers on the new third shift. The other downsized F-150 Lightning workers will be reassigned to roles within the surrounding Rouge Complex or other factories in the Detroit area, or they can retire with an incentive program created as part of the company’s new UAW contract, Ford said.

Setting new goals.
This decision aligns with a reported decrease in Lightning production last month by Automotive News. Ford informed suppliers that it would halve planned F-150 Lightning production this year due to a “shift in market demand,” going from an average weekly rate of 3,200 pickups to 1,600. However, the automaker hopes to continue increasing sales and improving profitability this year.

Slower progress for everyone.
The cutbacks have also disrupted suppliers who invested millions of dollars in tooling and equipment to meet the automakers’ plans. Ford has postponed about $12 billion in electric vehicle investments and pushed back some production targets. The company said it was reducing production of certain Mustang Mach-E models and delaying the opening of one of two planned battery plants in Kentucky with its partner SK. Ford noted that sales continue to grow but at a slower pace than expected.