Ford Cuts 1,000 Jobs in Germany Due to Sluggish EV Sales
Ford is poised to reduce its workforce by about 1,000 employees at its manufacturing facility in Cologne, Germany. This move, set to take effect from 2026, is a direct consequence of a noticeable slowdown in demand for electric vehicles, which necessitates a shift from a two-shift production schedule to a single shift. This action aligns with a broader cost-cutting strategy that the automotive giant initiated a year prior. The announcement has caused considerable unease among employees, following previous protests and a historic strike, as it compounds the 2,900 job eliminations already planned for completion by the close of 2027. The majority of these impending cuts will impact roles in administration and product development within the company.
The current job reduction plan at Ford's Cologne plant is designed to be voluntary, offering options such as severance packages or early retirement incentives to affected staff. The precise number of positions to be eliminated will be determined through ongoing negotiations with employee representatives. Initial layoffs are anticipated to commence as early as January, which will further decrease the factory's workforce to approximately 7,600 individuals. This figure stands in stark contrast to the nearly 20,000 employees who were part of the Cologne plant's operations in the late 2010s, highlighting a significant downsizing trend.
This latest development follows closely on the heels of Ford's 100th anniversary celebration in Germany, underscoring the challenges the company faces despite its long-standing presence in the region. The strategic pivot towards electric SUVs, intended to replace popular legacy models like the Fiesta and Focus with newer offerings such as the Explorer and Capri, has not yielded the expected success in the European market. Data from Germany indicates a 14.3 percent drop in new vehicle registrations in 2024 compared to the previous year. Over the last decade, Ford's market share in Germany has dwindled from nearly 7 percent to below 3 percent, though it recently saw a modest recovery to 4.5 percent.
In contrast to its European struggles, Ford's operations in the United States present a more optimistic picture. The company achieved robust sales of 2.08 million vehicles in 2024, marking a 4.2 percent increase and representing its strongest performance since 2019. The American market has shown a growing acceptance of electric and hybrid models, contributing positively to Ford's sales figures. Furthermore, the F-150 pickup truck continues to be a dominant force, maintaining its status as a top-selling vehicle and a cornerstone of Ford's success in North America.
The job cuts in Cologne reflect the profound challenges Ford is encountering in its transition to electric vehicles within the competitive and evolving European automotive landscape. This restructuring is a critical measure aimed at adapting to shifting market demands and ensuring the company's long-term viability, even as it celebrates a century of operations in Germany. The global automotive industry's move towards electrification is fraught with complexities, and Ford's recent decisions highlight the significant adjustments required to navigate this new era effectively.