Here’s Why Both Ford and GM Have Shut Down Pickup Production

• With high inventory and stable demand, GM is shutting down one of its pickup truck plants to prevent overproduction.

• Ford has voluntarily stopped assembly of its EV pickup, the F-150 Lightning, following a random vehicle fire at its production facility in Michigan.

• Do these shutdowns spell trouble for both manufacturers? Experts say it depends.

After years of delayed deliveries, material shortages, and scrawny dealership lots, the news that General Motors and Ford are both temporarily shutting down entire production plants is, well, worrisome, and not only because the pickup truck and SUV segments make up around 75% of annual sales in the US.

One of these plant shutdowns is voluntary and even complies with the United Auto Workers bargaining agreement, while the other is a swift response to a vehicle fire with an impending production change.

GM announced its two-week shutdown of the Fort Wayne, Indiana, pickup truck plant, starting on March 27. The internal move was a result of increased production during a time of steadying demand, according to an employee memo obtained by The Detroit News. GM's full-size truck plants in Michigan, Canada, and Mexico will continue to produce trucks during this time, and the company plans to proactively manage inventory throughout the year, according GM spokesperson Dan Flores.

This stoppage is actually in line with previous statements from GM CFO Paul Jacobson, who said the company aims to have about 50 to 60 days' inventory through 2023. As compared to pre-pandemic times, that is down around 30 days' of inventory, though Jacobson said current levels of demand don't necessitate pre-pandemic production levels.

On the other hand, Ford has been struggling with quality control this past year, as CEO Jim Farley has admitted. And its F-150 Lightning pickup is experiencing growing pains of its own. About three weeks ago, a fire broke out in a holding lot near the Rouge Electric Vehicle Center in Dearborn, Michigan, and Ford confirmed the fire originated from a pre-delivery Lightning model and spread to an additional Lightning truck before being extinguished. Ford has declined to give details about how or why the fire broke out, though it has had no customer complaints of fire and claims the root problem has been identified.

The fire meant Ford had to halt production of its electric pickup through at least this week. However, the company said its joint-venture battery supplier, SK, is back to producing cells at its Georgia facility, and that it expects a smooth but slow return to production.