Ford wants to cut costs and improve the quality of their vehicles. Ford will be introducing a new performance based system for bonusses and will hold the employees more accountable. Ford will also cut down manager bonuses by 65% of their current total and the changes could take place as early as the current quarter.
Ford has not just planned to cut bonuses but they recently paused the production of the Ford F-150 Lightning trucks at the Rouge Electric Vehicle Centre. The pause will last from the middle of November to right after the holidays till January 6, 2025. This will help them clear the surplus inventory of these trucks.
Ford in order to move the lightning will also reward dealers up to $1,000 for each F-150 Lightning Platinum, Lariat, Flash, or XLT model which have been ordered from one of Ford’s regional hubs or Rapid Replenishment Centers. While the sales of the electric trucks were steady at the start of the year, they have fallen down considerably and the demand is not as much as Ford anticipated it to be.
It’s not just Ford who is struggling in terms of car sales, other manufacturers are going through the same dilemma. Stellantis has paused production of many of its models, made a few price cuts and are trying to stay afloat by cutting down massive costs.
Volkswagen also seems to be in trouble and they have asked their employees to take a pay cut and they will be closing down three factories in Germany.
Ford’s CEO Jim Farley said,”I’m proud of the progress we’ve made, but we are not fully satisfied.” A Ford spokesperson added, “We are focused on lowering our costs, improving our quality and making Ford a higher growth, higher margin, more capital efficient and more resilient business.”
