Ford lays off workers building electric F-150.
Bad News for the Electric Vehicle Industry: Ford Lays Off Workers Building Electric F-150
There is more bad news for the electric vehicle industry. According to CNN, automobile giant Ford will lay off about 700 employees responsible for assembling the F-150 Lightning, the electric version of its highly popular pickup truck, at the Rouge Electric Vehicle Center in Dearborn, Michigan, close to its main headquarters.
“We are adjusting the schedule at the Rouge Electric Vehicle Center because of multiple constraints, including the supply chain and working through processing and delivering vehicles held for quality checks after restarting production in August,” the company said in a statement.
Ford said the layoffs were unrelated to the ongoing strike by the United Auto Workers union, according to CNN.
Last month, UAW President Shawn Fain said any layoffs by the company would be an effort to “put the squeeze on our members to settle for less.”
“Let’s be clear: if the Big Three decide to lay people off who aren’t on strike, that’s them trying to put the squeeze on our members to settle for less. With their record profits, they don’t have to lay off a single employee.
— UAW (@UAW) September 16, 2023
However, The Wall Street Journal reported last week that it had obtained a memo from a UAW leader expressing concerns about falling demand for Ford’s electric pickup.
“It doesn’t take a rocket scientist to figure out that our sales for the Lightning have tanked,” the memo said.
The electric truck, which came to market in April 2022, has been a pivotal component of Ford’s EV strategy. Its production was widely seen as a strategic maneuver by the company to leverage its strong brand appeal among pickup enthusiasts.
Declining demand also explains why Ford has implemented substantial price reductions for the model.
CarsDirect reported last week that the automaker is providing $7,500 in incentives for the Lariat and Platinum trims, which, when combined with federal tax cuts, could amount to a significant $15,000 reduction from the original retail price.
Not all electric trucks are the same. @MikeWayland has driven the Ford F-150 Lightning, Rivian R1T and the GMC Hummer EV. Here’s how they performed. https://t.co/6kDcioWKLw pic.twitter.com/suDb3qMlff
— CNBC (@CNBC) October 7, 2023
In July, Ford announced it expected to lose a staggering $4.5 billion on its electric vehicle line this year alone.
“For its transparent, customer-centered business units, Ford now expects full-year [earnings before interest and taxes] … [t]o be a loss of about $4.5 billion for Ford Model e, reflecting the pricing environment, disciplined investments in new products and capacity, and other costs,” the company said in a news release.
Nevertheless, the company said it still expected to reach profitability as the adoption of electric vehicles accelerates.
“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” CEO Jim Farley said in a statement at the time.
“[W]hile others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away,” Farley said.
The post Ford Lays Off Hundreds of Workers Who Were Building Electric F-150 appeared first on The Western Journal.
How has increased competition in the electric truck market impacted Ford’s market share and demand for their electric pickup truck
Ant $15,000 discount for customers. This move suggests that Ford is struggling to generate enough demand for the electric F-150.
Several factors may be contributing to the decline in demand. Firstly, the high price tag of electric vehicles remains a significant barrier for many consumers. While the cost of batteries has been gradually decreasing, electric vehicles still tend to be more expensive than their gasoline-powered counterparts. Secondly, the limited charging infrastructure across the country makes it less convenient for potential electric vehicle owners, especially those who live in apartments or urban areas without access to home charging stations. Thirdly, range anxiety, or the fear of running out of battery before reaching a charging station, is another factor that may deter some consumers from purchasing electric vehicles. Despite improvements in battery technology and extended driving ranges, some individuals may still have reservations about the practicality of electric vehicles for long-distance travel.
Furthermore, competition in the electric truck market is intensifying. While the F-150 Lightning was initially seen as a frontrunner, other automakers such as Rivian and Tesla have entered the market with their own electric truck offerings. This increased competition may have eroded Ford’s market share and contributed to the decline in demand for their electric pickup truck.
Nevertheless, the layoffs at the Rouge Electric Vehicle Center are undoubtedly a setback for Ford and the electric vehicle industry as a whole. The electric vehicle market has been touted as the future of transportation, with governments and consumers increasingly prioritizing sustainability and reducing carbon emissions. Ford’s decision to lay off workers building the electric F-150 sends a concerning signal about the current state and future prospects of the electric vehicle industry.
However, it is worth noting that this setback does not necessarily spell doom for the electric vehicle industry. Despite the challenges, there are still many signs of growth and progress in the sector. Governments around the world continue to implement policies and incentives to encourage the adoption of electric vehicles. Technological advancements, such as faster charging times and increased driving ranges, are also addressing some of the concerns that have held back potential buyers. Additionally, as more automakers enter the market and competition increases, we can expect further innovation and improvements in electric vehicle offerings.
In conclusion, the layoffs at Ford’s Rouge Electric Vehicle Center building the electric F-150 Lightning reflect the challenges and uncertainties facing the electric vehicle industry. While declining demand, high prices, limited charging infrastructure, and competition are factors that need to be addressed, the industry still holds immense potential for growth and transformation. The future of electric vehicles will depend on continued investment, innovation, and collaboration between automakers, governments, and consumers.
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