Ford layoffs: Ford Motor Co. announced on Tuesday that it would cut up to 1,000 jobs at its electric vehicle plant in Cologne, Germany, due to lower-than-expected demand for battery-powered cars.
As part of the latest job reduction plan, the company will aim to use voluntary departures and buyouts wherever possible, AP reported.
The company stated it was continuously assessing production levels and adapting them to demand.“In Europe, the demand for electric cars is significantly below industry forecasts,” the company statement said. The plant, which produces an electric version of the Explorer SUV, will switch to one shift per day from two from January onwards, the report quoted the company.
The latest layoffs come after the company announced its restructuring plans in November 2024. These plans were anticipated to cut 4,000 jobs in Europe and the UK, with 2,900 of these losses in Germany.
Workers staged a strike before a deal was reached in July, which IG Metall union officials said would provide employment guarantees to over 10,000 workers at the plant till 2032, reported news agency AFP.
Ford has invested around $2 billion, nearly 2.3 billion euros, in upgrading the Cologne plant for electric vehicle production, in anticipation for a surge in demand for low-emission vehicles.
However, EV sales in Europe have failed to take off due to high upfront costs and lack of charging infrastructure.
Ford’s EV sales
Electric vehicles accounted for 15.6% of the European market in the year through July, up from 12.5% in the same period last year. Growth has been slower than anticipated, partly due to the withdrawal of purchase subsidies in Germany.
Ford sold 260,00 vehicles of all types in the first seven months, a 0.7% increase, and held its market share at 3.3%, according to the European Automobile Manufacturers’ Association.
(With inputs from agencies.)