Although Ford is still working to expand electric vehicle production and achieve profitability, the company decided to reduce the production line workers of the F-150 Lightning electric pickup truck by two-thirds. Ford announced Wednesday it will reassign workers at its Rouge Electric Vehicle Center (REV-C) or allow them to opt into a $50,000 retirement package.
Only a third of the 2,100 workers originally working at the plant, about 700, will remain in their jobs. The remaining 1,400 people will face two choices: transfer to the Michigan Assembly Plant in Wayne (which produces Bronco and Ranger models) or accept the $50,000 negotiated with the union last year (Note: currently about 362,000 RMB) Pension scheme.
A new shift will be added at the Michigan assembly plant in an effort to boost Ford’s finances through sales of gas-powered models. Ford’s current sales of fuel models are still strong, which can provide the company with a stable flow of funds, while sales of electric models have been tepid.
A Ford spokesman said no employees would lose their jobs as a result of the personnel changes.
Ford lowered its F-150 Lightning production target late last year as the company needed to evaluate the optimal strategic output of its electric pickup truck. In February, Ford paused deliveries of the F-150 Lightning to prioritize delivery of the fuel-powered F-150 pickup truck.
Earlier this week, Ford Chief Financial Officer John Lawler reiterated to investors at a conference that the company is adjusting its strategy, including purchasing decisions, to remain competitive in a saturated market with fierce competition. Lawler acknowledged that Ford may have overestimated its capacity needs when it began producing electric vehicles.
