Ford's Cologne Plant Faces Challenges Amid Weak EV Demand

Ford is implementing short-time work at its Cologne Electric Vehicle Center due to lower-than-expected demand for electric vehicles. This decision comes despite the company's substantial investment exceeding $2 billion and the retraining of over 3,000 employees. The production will alternate between one week of activity and one week off until the Christmas holidays, with similar measures expected in the first quarter of 2025.

The move is a response to rapidly worsening market conditions, as Ford has already applied for short-time work at the Federal Employment Agency. The entire automotive industry is struggling, affected by poor consumer sentiment and the impending end of electric vehicle subsidies in 2023. Additionally, discussions at the EU level about potentially lifting the ban on combustion engines are adding to the uncertainty.

Ford's Cologne plant, previously reducing its workforce from 20,000 to 13,000 employees, is particularly impacted. The production of the Explorer and Capri models is being adjusted to align with the lower sales figures. The plant will produce fewer vehicles daily, with a reduction from 630 to 480 units.

These challenges underscore difficulties faced by the broader electric vehicle market in Europe, as consumers remain hesitant and financial incentives dwindle. Ford's strategic response highlights the balancing act between maintaining production capabilities and adapting to market realities. The situation at the Cologne plant serves as a stark reminder of the current volatility within the automotive sector.