Ford (NYSE:F) has temporarily downsized its workforce at the Rouge Electric Vehicle (EV) Center in Michigan. Notably, these layoffs are unrelated to the ongoing United Automobile Workers (UAW) strike and will impact around 700 employees.
According to Jessica Enoch, a spokesperson for Ford, this move is a response to various challenges, including supply chain constraints. The company is currently focused on processing and delivering vehicles that are held for quality checks.
In the third quarter, Ford achieved a record number of EV sales. However, during the same period, sales of the F-150 Lightning experienced a 46% year-over-year decline, with only 3,500 units sold.
Ford has plans to expand production capacity at the Rouge EV Center to boost F-150 Lightning sales in the fourth quarter. Nevertheless, it remains unclear how reducing shifts will help the automaker optimize its production.
A UAW memo, as reported by The Wall Street Journal, suggests that the company was considering cutting a shift to allocate resources for manufacturing more gas-powered vehicles.
The conundrum for Ford lies in the demand-supply ratio for their electric truck. While Ford receives substantial reservations, most orders end up being canceled due to affordability concerns. The F-150 Lightning is perceived as costly.
In response to this challenge, Ford recently introduced discounts on select variants of the F-150 Lightning, aiming to make the vehicle more accessible to a broader customer base. With Ford’s discounts and the federal tax credit, customers can potentially save up to $15,000 on their purchase.
Featured Image: Unsplash @ Kenny Eliason
Author Stephanie Bédard-Châteauneuf 
