Ford to Lay off Nearly 700 Workers at F-150 Lightning Plant, Unrelated to UAW Strike
In an unexpected move, Ford announced that it will be laying off around 700 workers at its Rouge Electric Vehicle Center in Dearborn, Michigan, where the F-150 Lightning, the electric version of its popular pickup truck, is being produced. Unlike recent layoffs prompted by the United Auto Workers (UAW) strike, this decision is unrelated to the ongoing labor dispute.
According to Ford, the temporary cut in workforce will involve reducing one of the three shifts at the plant. The layoffs will be rotated among the shifts. The plant had previously shut down temporarily during the summer to enhance its production capacity. Ford cited various constraints, including supply chain issues and delays in processing and delivering vehicles after resuming production in August, as reasons for the latest downsizing.
Recent reports reveal that Lightning sales experienced a significant decline of 45% in the third quarter compared to the previous year. However, Ford remains optimistic about future sales, expecting a boost during the final quarter as it ramps up production capacity at the plant. The company emphasized that there is strong demand for its electric vehicle (EV) lineup, which witnessed a 65% increase in the third quarter.
Meanwhile, the UAW-led strike has had a broader impact on the automotive industry. All three major companies affected by the strike, Ford, General Motors (GM), and Stellantis, have been compelled to lay off employees. Ford’s additional 500 layoffs at five component plants were announced following the expansion of the strike at its largest factory, the Kentucky Truck Plant. Company executives foresee a total of 4,600 layoffs in the coming week due to the escalating strike at Kentucky Truck. Stellantis also escalated its layoffs, with 780 employees being let go at two plants in Kokomo, Indiana. GM, however, has not yet announced any recent layoffs, even though it has already laid off 2,300 workers, citing the strike’s impact.
The affected workers, due to the strike, are not eligible for unemployment benefits in most states, nor are they entitled to the “strike subsidy” usually provided by the companies. However, Ford spokesperson Jessica Enoch confirmed that workers laid off from the F-150 Lightning production line will be eligible for both benefits.
The UAW has remained critical of the companies’ decision to lay off workers indirectly affected by the strike. UAW President Shawn Fain claimed that this move is an attempt to exert pressure on union members to accept unfavorable conditions. However, Fain assured the affected workers that they will receive the same $500 weekly strike benefits as the 35,000 workers currently involved in the strike.
With the ongoing UAW strike and the separate challenges faced by Ford’s F-150 Lightning production, the future remains uncertain for both the company and its workers. As negotiations continue, the hope is that a resolution can be reached to restore stability to the industry and protect the interests of all parties involved.