Ford Motor’s EV October Surprise

Auto workers could lose $5,000 from EV losses. Thanks, Shawn Fain.

WSJ editorial. 

"Talk about an October surprise for Michigan auto workers. Ford Motor Co. on Thursday said it will idle production of its F-150 Lightning electric truck in Dearborn from mid-November through the end of the year.

Ford’s production stoppage follows a string of ominous announcements, starting in October 2023 when it announced plans to lay off about 700 workers who build the Lightning. In the spring Ford said it would eliminate two of three work crews at the Dearborn plant. In August it scrapped a planned electric SUV.

“We continue to adjust production for an optimal mix of sales growth and profitability,” Ford said Thursday. As any business should. Ford’s EV sales have lagged projections despite steep price cuts. Blame in part a market glut caused by government EV mandates.

Ford has sold a mere 22,807 Lightnings so far this year—a far cry from the 180,000 the Dearborn factory was originally supposed to produce. The EV lobby and its friends in the press fawned over the Lightning when it debuted two years ago. The Lightning supposedly signaled that EVs had finally gone mainstream. Not quite.

Chief Financial Officer John Lawler this spring explained that battery advances are needed for mass adoption. “The bigger the vehicle, the bigger the battery. And the battery is the most expensive thing in the vehicle. And then the bigger the battery, the more weight. The more battery you need, the less efficient the vehicle is,” he said. “So the costs just spiral out of control.”

Ford’s EV division has lost $3.7 billion during the first three quarters of this year—about $55,000 per EV—and expects $5 billion to $5.5 billion in losses this year. Under the UAW contract, workers earn a $1,000 bonus for every $1 billion in company profit. The EV losses could result in $5,000 in reduced pay for Ford workers.

They can thank United Auto Workers boss Shawn Fain for backing the Biden Administration’s force-fed EV transition. Stellantis and GM have also reduced shifts and laid off thousands of workers who make internal-combustion engines. Yet Kamala Harris and Michigan Democratic Rep. Elissa Slotkin, who is running for Senate, keep saying EVs will be fantastic for auto workers.

One reason the election polls have narrowed in Michigan is that auto workers watching the EV transition from the front passenger seat don’t believe them."