Yardbird
Senior Member
Ford’s Electric Dreams Over? German Plant Stalls With Jobs on the Line
Story by Max McDee3 min read
The automotive world is in a bit of flux at the moment, with electric vehicles taking center stage. But the transition isn’t always smooth, as Ford’s recent production trouble in Cologne, Germany, demonstrates.
Ford’s Cologne plant was once a bastion of internal combustion engine vehicle production. The company invested $2 billion to retool the factory to produce the electric Explorer SUV and Capri crossover, both built on Volkswagen’s MEB platform. The strategic partnership with VW was meant to propel Ford into the electric era.
Unfortunately for Ford and its employees, the road to electrification has hit a few potholes. Ford announced a reduction in EV production at the plant, citing “significantly lower than expected demand for electric vehicles, especially in Germany.” This, in turn, has led to short-time working, with employees alternating between one week on and one week off until the Christmas holidays. Talking about bad timing.
This news might come as a surprise to some, given the hype surrounding EVs. But the reality is that many factors are contributing to the slowing demand. The ridiculously high prices are putting people off. Buyers are unsure about purchase incentives. The confusion surrounding the EU’s 2035 ban on combustion engines doesn’t help. Add to it the lack of charging infrastructure and inflation, and we can see why the brakes are coming on for EV adoption.
Ford’s situation isn’t helped by its limited offerings in the ICE market. The company has been streamlining its passenger car business in Europe to focus on its more profitable commercial van segment. This strategy has left Ford vulnerable to fluctuations in the EV market.
Next year, the automaker will also phase out production of the Focus compact model in Saarlouis, Germany. Ford is getting more committed to its van business and is cautious about the passenger car market in Europe.
The sales figures paint a clear picture of the challenges Ford faces. In the EU, EFTA, and UK markets, Ford’s passenger car sales slumped by 18% to 326,975 units through September, while the total market contracted by only 4.2%, according to industry data. Ford’s market share dropped from 4.1% to 3.3%.
The Cologne plant employed 20,000 workers back in 2018. Since then, it has seen its workforce dwindle to 13,000. There’s more bad news. Ford plans to further reduce shifts in early 2025. Workers are hoping for government incentives to boost EV sales, but with Germany’s coalition government in turmoil and a general election looming in February, that support is very unlikely.
Ford’s experience in Cologne serves as a reminder that the road to electrification is not without its bumps. And while many will say it’s because the EVs don’t work, the truth is a little bit deeper than that. The initial attraction is gone, for sure. And that’s because many legacy automakers tried flogging old tech wrapped in shiny new bodies. People caught wind of it and now simply refuse to pay top money for the last decade’s junk. And now, those automakers struggle to sell their cars and blame the whole world for it.
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