Ford slows F-150 Lightning output, puts manager bonuses on the chopping block

Ford is reportedly planning two major cost-cutting measures – as part of the company’s efforts to improve its sales, growth, and profitability.

First and foremost: One of the measures is focused on addressing the automaker’s losses with electric vehicles by reducing its F-150 Lightning output.

• Ford will halt production of the Ford F-150 Lightning electric pickup trucks at its Rouge Electric Vehicle Center in Michigan on Nov. 15, 2024 and resume production on January 6, 2025.

• Through Q3 of 2024, Ford sold 22,807 F-150 Lightning pickups, while selling over 550,000 units of the popular F-Series trucks through September. 

• Roughly 730 hourly workers will be furloughed during the temporary production halt of the F-150 Lightning. Although, some will continue to work in other capacities.

Pricing for the Ford F-150 Lightning has been cut substantially in recent months in an effort to boost sales of the electric pickup, with the base Pro model being slashed more than $7,000, dropping from $57,090 to $49,875.

More to come: Ford CEO Jim Farley also recently announced at a town hall meeting that Ford will lower managers’ bonuses if the company doesn’t improve its quality and reduce costs in Q4.

• Reports suggest that manager bonuses at Ford could be cut by 65% of their total. 

• The lowest 5% of performers are subject to what Ford calls, “appropriate action,” which includes potential layoffs.

• Currently, GM rewards its top 5% of employees with 150% bonuses, which is higher than what was available under the previous system.

Why it matters: News of the two cost-cutting measures follows reports that Ford (while beating Q3 earnings expectations) lost more than a billion-plus dollars on electric vehicles during the third quarter, which cut substantially into the company’s profits. Ford has said that it expects to begin making a profit on EVs soon but if it doesn’t, more pullbacks are likely to follow.

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