Ford to eliminate up to 1,000 positions at its Cologne plant amid stagnant consumer interest in electric vehicles
In a challenging European market, Ford has announced plans to reduce up to 1,000 jobs at its production site in Cologne, Germany. The shift, scheduled to begin in early 2026, will see the plant operate on a single-shift basis.
The decision comes as the company grapples with weak demand for electric vehicles produced at the Cologne plant, a facility that has been in operation since 1930. The plant was recently converted to produce electric vehicles with investments of nearly two billion euros.
Stefan Bratzel, from the Center of Automotive Management, has been critical of Ford's strategy in Europe, finding it too expensive and with a wrong focus on the European market. Bratzel described the development of the Cologne plant as a "tragedy" and found it "almost impossible" for the single-shift operation to be profitable.
Ford management, however, is committed to supporting those affected by the job cuts. The exact number of affected positions has not yet been determined, and talks with employee representatives are planned. The initial job cuts will be without forced redundancies, offering severance packages or partial retirement.
The timeline for the job cuts is tight, aiming to complete the reductions by January 2026. If the number of voluntary departures is insufficient, future dismissals are not ruled out.
Despite the challenges, Ford's market share in Germany has increased from 3 to 4.5 percent since the beginning of the year. However, the company had expected a 35 percent share, a significant disparity that highlights the struggles faced by the automaker.
Industry-wide, the market share of electric vehicles is well below initial projections. This is evident in the registration data, with around 74,000 Ford passenger cars registered in Germany from January to August, of which approximately 20,000 were electric.
The abolition of the electric vehicle subsidy by the coalition government just before the switch further complicated the market situation. The weak demand for the relatively expensive Explorer and Capri models produced at the Cologne plant has also contributed to the challenges faced by Ford.
The company is offering voluntary severance packages, with terms carried over from the first cost-cutting program. The package negotiated by IG Metall, the powerful German trade union, is considered relatively attractive for employees.
As Ford navigates these challenging times, it remains committed to its European operations and the Cologne plant, which has been a cornerstone of its presence in the region for nearly a century.
