US Markets
Friday, January 19th, 2024 2:57 pm EDT
Key Points
- Production Adjustments: Ford Motor is increasing production of its Bronco SUV and Ranger pickup while simultaneously cutting production of its all-electric F-150 Lightning. These changes are driven by the company’s aim to align production levels with customer demand. The decision reflects a broader trend in the automotive industry, with adjustments to electric vehicle (EV) production plans due to slower-than-expected customer demand.
- Strategic Manufacturing Flexibility: Ford CEO Jim Farley emphasizes the company’s strategic approach to manufacturing flexibility. The goal is to provide customers with choices while maintaining a balance between growth and profitability. Farley expresses confidence in the F-150 Lightning, touted as America’s best-selling EV pickup, and underscores a positive outlook for electric vehicles, especially with upcoming digitally advanced EVs and access to Tesla’s charging network starting in the current quarter.
- Impact on Employees and Plants: The announced cut in F-150 Lightning production will result in a reduction of production shifts from two to one at the Rouge Electric Vehicle Center in Michigan, affecting approximately 1,400 employees, with the change set to take effect on April 1. Ford plans to transfer roughly half of the affected employees to nearby plants, including the Michigan Assembly Plant responsible for Bronco and Ranger production. Additionally, the Michigan Assembly Plant is set to add a third shift in the summer to increase production, and the company plans to add 900 jobs at that plant. Overall, these adjustments are part of Ford’s strategy to adapt to changing market dynamics and optimize its production capabilities.
Ford Motor is adjusting its production strategy by increasing the output of its Bronco SUV and Ranger pickup, while simultaneously reducing the production of its all-electric F-150 Lightning, according to an announcement made by the automaker. These changes aim to align production with customer demand and reflect the broader trend of adjustments to electric vehicle (EV) production plans due to slower-than-expected demand. Ford’s CEO, Jim Farley, emphasized the company’s commitment to providing customers with choices and maintaining a balance between growth and profitability. The decision to cut F-150 Lightning production comes on the heels of previous reports indicating a significant reduction in planned production for the electric pickup. Production at the Rouge Electric Vehicle Center in Michigan, where the Lightning is manufactured, will transition from two shifts to one, affecting around 1,400 employees, with the change set to take effect on April 1. Ford did not specify the impact on output resulting from the eliminated shift, but approximately half of the affected employees are expected to transfer to nearby plants, including the Michigan Assembly Plant, which produces the Bronco and Ranger. The latter facility is set to add a third shift in the summer to increase production and will see the addition of 900 jobs. While sales of the F-150 Lightning witnessed a 55% increase last year, surpassing 24,000 units, the vehicles have not been selling as rapidly as initially anticipated. Ford anticipates further sales growth for the EV in 2024, although it is expected to fall short of the initially planned 150,000 production rate. On the other hand, sales of the Bronco and Ranger experienced declines of 9.7% and 43.3%, respectively, in the previous year, with the production plant facing disruptions due to a six-week UAW labor strike. Ford expressed optimism about the future of electric vehicles, highlighting the upcoming digitally advanced EVs and the collaboration with Tesla’s charging network, set to commence in the current quarter.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/19/ford-cuts-f-150-lightning-ev-production-adds-to-bronco-ranger-plant.html
