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FORD ADDS THIRD CREW TO MEET DEMAND FOR BRONCO AND RANGER, REDUCES F-150 LIGHTNING PRODUCTION

JAN 19, 2024 | DEARBORN

Ford F-150 Lightning Ford Reduces F-150 Lightning Production to Match Customer Demand Screenshot 2024-01-19 at 4.58.31 AM


  • Ford will create nearly 900 new jobs and add a third crew at Michigan Assembly Plant to increase production of the popular Bronco and Bronco Raptor sport-utility vehicles and the all-new Ranger and Ranger Raptor pickups
  • The company continues to balance production to meet customer demand for its broad portfolio of trucks, utility vehicles and cars with a mix of gas, hybrid and electric powertrains
  • Ford is reducing production of F-150 Lightning, the top-selling electric pickup in the U.S., to achieve the optimal balance of production, sales growth and profitability. Ford expects continued growth in global EV sales in 2024, though less than anticipated, and is preparing to launch next-generation EVs
DEARBORN, Mich., Jan. 19, 2024 – Ford Motor Company announced plans to create nearly 900 new jobs as part of a new third crew at Michigan Assembly Plant in Wayne to meet demand for the popular Bronco and Bronco Raptor and the all-new Ranger and Ranger Raptor.

The company is moving nimbly across its global footprint to capitalize on its balanced lineup and serve customers with the right mix of gas-powered, hybrid and electric vehicles, while optimizing financial returns.

In addition to nearly 900 net new hires, the new 1,600-person third crew at Michigan Assembly Plant will also include approximately 700 employees from Ford’s Rouge Complex in Dearborn who applied for job openings.

Ford is adding the manpower this summer to support planned future volume increases for vehicle lines assembled at the plant. The all-new Ranger and Ranger Raptor are on track to launch this year. Michigan Assembly Plant will transition to producing vehicles seven days a week versus five currently, with three crews working two shifts.

Matching F-150 Lightning production to customer demand

The company also has capacity available to scale production of gas-powered and hybrid F-150 trucks based on customer demand.

Ford was America’s No. 2 best-selling electric vehicle brand in 2023, and F-150 Lightning is America’s best-selling electric truck with sales up 55% in 2023 and further growth forecast for 2024.

“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability. Customers love the F-150 Lightning, America's best-selling EV pickup,” said Ford President and CEO Jim Farley. “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."

Approximately 1,400 employees will be impacted as the Rouge Electric Vehicle Center transitions to one shift effective April 1. Roughly 700 will transfer to Michigan Assembly Plant and the others will be placed in roles at the Rouge Complex or other facilities in Southeast Michigan, or take advantage of the Special Retirement Incentive Program agreed to in the 2023 Ford-UAW contract.

A few dozen employees could be impacted at component plants supporting F-150 Lightning production, depending on the number of employees who apply for the Special Retirement Incentive Program. Ford would provide placements for impacted employees within Southeast Michigan.
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RickLightning

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Going from 2 shifts to 1 has to mean a reduction from the 1,600 per week announced late last year. @TaxmanHog?
 

Texas Dan

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Ford is still in a sweet spot for ICEs before CAFE and CARB penalties really start kicking in. I think we will start to see ICE vehicle prices really go up in 2026 to cover these penalties. Hopefully Ford will have attractive offerings by then to capture buyers turned away by high ICE vehicle prices.

It’s possible that Ford could raise prices on EVs to help cover penalties, if Ford does this then all electric vehicle manufacturers like Tesla and Rivian will really eat Ford’s lunch.
 
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TaxmanHog

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Volume is not reaching the 1600 goal, I've been watching "new" listings on Autotrader for several weeks, haven't seen any Lightnings listed for the week starting 1/22, these are the production values so far, mean value ~760 a week.

Ford F-150 Lightning Ford Reduces F-150 Lightning Production to Match Customer Demand 1705673002952
 

Oafy44

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I thought ford came about a couple months ago stating the same in this article today. Are they cutting even more than they stated they would be cutting previously?
 

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I thought ford came about a couple months ago stating the same in this article today. Are they cutting even more than they stated they would be cutting previously?
Previously they cut from 3 shifts to 2, now 2 to 1.
 

TaxmanHog

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Why not just pull the easy levers to increase demand like eliminating MAAP?
??? what does this refer to , links???
 

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The Lightning is a niche truck that meets certain use cases but not the bulk. True that it probably meets more people's real need but that is a hill not for today. Honestly I'd like to see a slow of EVs on the road and see how the Tesla charging really impacts us first. It's an old an tired post but long distance traveling in certain areas just suck and we need EV fast charging stations at at least half the stops gas stations have right now before this charging away from home becomes a deal killer.
 

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I once worked for a company that would rather give up sales volume than product margin. We assumed marketing guys were rewarded on margin but not profit. Sounds like they work for Ford now.
When Ford abandoned the work truck version of the Lightning in favor of Lariats marketed to truck newbies, they jettisoned their bread and butter segment. I see very few Pro’s that would make sense for local tradesman driving under 100 to 200 miles per day like plumbers and electricians. Imagine the cost savings of electricity over diesel fuel. Imagine the sales volume.
The pigeons have come home to roost.
 

swajames

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I once worked for a company that would rather give up sales volume than product margin. We assumed marketing guys were rewarded on margin but not profit. Sounds like they work for Ford now.
When Ford abandoned the work truck version of the Lightning in favor of Lariats marketed to truck newbies, they jettisoned their bread and butter segment. I see very few Pro’s that would make sense for local tradesman driving under 100 to 200 miles per day like plumbers and electricians. Imagine the cost savings of electricity over diesel fuel. Imagine the sales volume.
The pigeons have come home to roost.
i don’t see it that way, there’s really not much margin in the Pro trim, so they don’t want to make or sell them. The “lose money on every deal, but make it up on volume“ business model isn’t the most sustainable…

Ford F-150 Lightning Ford Reduces F-150 Lightning Production to Match Customer Demand IMG_0289
 
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They will eventually ramp up when infrastructure improves. Also the next generation won't have people as scared. I think this still is going to be more trucks than they built last year.
 

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So frustrating to see them cutting production, when so many other (*cough* European and Asian *cough*) companies are ramping up EV production. Demand in general for EVs is high, Ford just has a very specific/targeted product in the Lighting.

We bought our Lightning instead of a Rivian R1S due to our familiarity with Ford, the features and design, and the impending Tesla network access. While I don't regret getting our Lightning, I'm not happy with Ford's panic reflex and output reduction.

I know a lot of people here didn't buy their vehicle to "save the planet", and that's fine...to each their own. But for us that was part of the decision process (I've been wanting an EV for years, but refused to buy a Tesla for certain reasons ;) ). I'm disappointed to see Ford pulling back from actions which will help combat climate change, while Rivian, Tesla, Kia and others surge forward.

Again, this is my opinion, YMMV and I'm not looking to start a debate. Just thinking "out loud" as it were. :)
 

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They will eventually ramp up when infrastructure improves. Also the next generation won't have people as scared. I think this still is going to be more trucks than they built last year.
That infrastructure improves by thousands of percent "next month" if Ford and Tesla stay on schedule, because Ford will have access to the Tesla Superchargers. If that is just a few weeks away then they would want to increase production to have units on the lots to sell if this were an infrastructure issue.
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