Lucid layoffs: Casa Grande’s mayor responds

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Lucid layoffs: Casa Grande’s mayor responds

April 4, 2023

Casa Grande, Arizona — The mayor of Casa Grande tried to stop rumors.

Mayor Craig McFarland said by phone:

“And I said, ‘The factory won’t be closed.'”

“Plants” are the greatest economic prize in Pinal County’s modern history. Lucid Motors Electric Vehicle Factory in the vast desert.

Two years on the assembly line for its luxury EV sedan, California-based Lucid says it plans to lay off about 1,000 employees by July.

The Casa Grande factory bore the brunt of Lucid’s 1,300 layoffs, an 18% reduction across the company.

Lucid said it was cutting costs as part of a “restructuring plan” after disappointing fourth-quarter earnings reports.

The company has also cut its vehicle production target for this year to 14,000 from 10,000, about half of analyst expectations.

Analysts said Lucid’s sedan could cost up to $170,000, which could limit the consumer market.

McFarland, who took office in 2017, said just two months after Lucid’s announcement, “The road they’re on is an unfortunate one.

EV hubs can help laid-off workers

Lucid’s arrival in Arizona has created a hub for the electric vehicle industry, including suppliers, manufacturers and workers.

This could bode well for Lucid employees looking for work.

“There are a lot of opportunities,” McFarland said. “I’m not too worried…I believe they will find a job.”

Some of Lucid’s labor needs are Vocational Training Center Drive48 For high tech workers at Central Arizona College in Coolidge.

One sign of demand for high-tech manufacturing workers: About 2,200 students have been trained at Drive 48 since it opened two years ago, said Angela Askey, CAC’s executive director of public affairs. says.

Displaced employee support service

Lucid Motors said laid-off employees will be provided with a retirement package that includes paid medical coverage.

Affected employees can access services by calling or visiting the Pinal County Business and Career Center at Casa Grande, 820 East Cottonwood Lane Building E. The phone number is (520) 509-3555.

What about Lucid incentives?

When Lucid Motors arrived in Arizona in late 2016, it didn’t have a drivable prototype or a well-funded business, but Republican Governor Doug Ducey gave the company executives a $47 million incentive package. welcomed

According to Patrick Ptak, senior vice president of the Arizona Department of Commerce, which manages incentives, Lucid has applied for and received just a fraction of these incentives.

Ptak said approximately $46.5 million in incentive balance is still available to Lucid.

All incentives are performance-based, so Lucid must meet certain employment or investment goals before he can apply for reimbursement, he said.

“They will submit an application and say, ‘Yeah, here’s the proof,'” Ptak said.

In announcing the layoffs, Lucid said it is still planning expansions at Casa Grande to support the 2024 rollout of its first SUV.

Major Lucid Investor: Saudi Arabia

Ironically, Lucid’s endurance in electric car racing is backed by one of the world’s largest oil producers. The company’s largest investor is the Saudi government.

The country’s sovereign wealth fund initially invested $1 billion to allow Lucid to start the assembly line.

Saudi Arabia has also pledged to buy up to 100,000 Lucid vehicles built in future factories in Arizona or the Middle East, according to securities filings.