Ford says the “rapidly declining” EV market is to blame as it plans to cut production of many electric models. Starting next week, workers at Ford's Cologne EV plant in Germany will be put on temporary working hours.
Ford is delaying EV rollout as market conditions tighten
According to a German newspaper Kölner Stadt-Anzeiger (with Automobilwatch), employees will alternate working one week with the next off.
The reduced working hours will last until the Christmas holidays. A Ford spokesperson told the newspaper, “We can confirm that Ford will apply to the Federal Employment Agency for temporary employment due to the deterioration of the electric vehicle market.”
Ford has invested $2 billion to prepare the plant to produce its next-generation electric models for the European market. It currently builds two EV models, the Electric Explorer and the Capri.
After starting production of the first all-electric Explorer in June, Ford added its second model, the Capri EV, last month. Both are based on Volkswagen's MEB platform as part of the 2020 partnership.
“We produce more than we can sell,” the German publication quoted Ford as saying in an internal report.
This news comes after Ford has significantly reduced leadership in this region. Earlier this month, Ford lost two experienced leadership team members in Germany.
Christian Weingärtner and Rene Wolf both stepped down on November 1, 2024, leaving the company with only two directors. That's down from nine earlier this year.
Electrek's Take
Ford is not the only automaker struggling as the European market shifts to electric cars. Volkswagen, Nissan, Stellantis, and others have announced layoff plans.
Although the company said “rapidly deteriorating market conditions” were to blame, global EV sales are still growing.
According to new data from Rho MotionOctober was another record-breaking month for global EV sales. Global electric vehicle sales are now up 24% (13.3 million) YOY by October 2024.
China is leading EV market growth in the first ten months of 2024, with EV sales up 38% year-on-year (YOY). In the EU, EFTA, and the UK, EV sales fell by 3% YOY, with reduced government incentives in Germany, the largest market.
Despite Ford, VW, and others reducing production, Chinese EV makers, such as BYD, expect sales to accelerate with local production.
Ford's EV struggles aren't limited to Europe. In the US, Ford will stop building F-150 Lightning models next week at its Rouge EV plant in Michigan for about two months.
Ford spokeswoman Jessica Enoch confirmed it in an email to Electrek“We continue to adjust production to find the right combination of sales growth and profitability.”
The first day off will be November 18, and production will resume on January 6, 2025. The break includes a week of holiday break, beginning December 23, at all US Ford plants.
Ford's EV model business lost another $1.2 billion in the third quarter. In the first nine months of 2024, the company lost $3.7 billion on EVs. The company expects its EV unit to lose about $5 billion in total by 2024.
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