After facing significant challenges ramping up production and meeting customer demand for the F-150 Lightning, Ford recently announced layoffs that will drastically cut volume at its electric vehicle factory in Michigan.
The action will affect around two-thirds of the workers at Ford’s Rouge Electric Vehicle Center in Dearborn, with 1,400 employees being asked to retire or shift to another production facility. That leaves Rouge with one shift a day, down from two last year. There were already rotating layoffs at the factory, so this is likely not a complete surprise for the affected employees.
Half of the laid-off workers are moving to Ford’s Michigan Assembly Plant to help boost the output of the Bronco and Ranger. The Blue Oval is also hiring 900 additional employees for the factory, indicating that there’s no shortage of demand for its gas vehicles. Other employees affected by the layoff can retire with a UAW-negotiated incentive package or opt to relocate to another facility.
Electric vehicle demand was off the mark across the board last year, with new EVs spending way longer sitting on dealers’ lots than many expected. Even with tax credits for some models, many EVs are significantly more expensive than their gas-powered counterparts. The F-150 Lightning is no exception, though gas trucks aren’t cheap by any stretch of the imagination.
[Image: Ford]
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