The Ford Motor Co. (F) is cutting the planned 2024 production of its fully electric F-150 Lightning pick-up truck in half after a costly strike by the United Auto Workers (UAW) union.
The production cut is a major reversal for the automaker after it ramped up plant capacity and production for the electric truck in 2023.
The new production plans call for 1,600 F-150 Lightning pick-up trucks to be made a week at Ford’s main plant in Dearborn, Michigan.
Previously, Ford planned to produce as many as 3,200 F-150 Lightning trucks per week in 2024.
Following a costly six-week strike by the UAW, Ford has canceled or postponed $12 billion U.S. in electric vehicle investments.
Electric vehicle demand has been slower than the auto industry expected, as prices and interest rates remain high.
Automakers have been slashing prices on their electric vehicles to move inventory, while also revising their production plans for the year ahead.
Sales of the F-150 Lightning have slowly increased in 2023, notching a monthly record of 4,400 sales in November.
The gasoline-powered version of the F-150 pick-up truck has consistently been among the bestselling vehicles in North America since 1976.
Ford’s stock is down 5% in 2023 and trading at $11.07 U.S. per share.
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