Ford to implement job cuts of 1,000 employees at its Cologne electric vehicle manufacturing facility due to a decrease in market demand, according to a recent report.
Ford Announces Major Restructuring in Germany, Affecting Thousands of Jobs
In a significant move, Ford has announced a series of changes to its operations in Germany, including a shift to a single-shift system from January 2026 and potential job cuts at its electric vehicle (EV) production plant in Cologne.
The discontinuation of the FNV4 project, aimed at creating a next-generation electrical architecture, was announced back in May 2025. This decision was made to reduce costs and introduce new profitable features. The move is part of a broader restructuring effort by Ford in Germany, which also includes the Saarlouis facility.
Up to 1,000 jobs at the Cologne EV plant may be cut due to a decline in demand. Ford has committed to providing voluntary redundancy packages to the employees impacted at its Cologne EV centre.
The challenges faced by Germany's industrial sector, including automotive companies and their suppliers, are highlighted as they struggle in a static European car market while investing in new technology. Companies like ZF, Montaplast, and Continental are also undergoing restructuring processes, with cost savings and profitability measures focused on electromobility and new technologies.
ZF plans to cut up to 14,000 jobs in Germany by 2028, focusing on reducing costs, streamlining its portfolio, reviewing production sites, and potential layoffs to recover its propulsion division affected by delayed electromobility uptake. Montaplast intends to reduce about 650 positions by 2028, investing simultaneously in the Morsbach site with measures such as installing photovoltaic systems to cut energy costs and optimizing processes for competitiveness. Continental announced extensive job cuts, including thousands of positions in automotive divisions and research and development, aiming to maintain competitiveness amid industry challenges and the shift to electromobility.
Bosch's mobility division is facing an annual financial gap of approximately €2.5bn ($2.93bn) due to increased competition and subdued sales. To maintain profitability, Bosch has initiated a restructuring process within Germany, involving job reductions and lowering production expenses.
The automotive industry is undergoing a significant transformation, with major firms adjusting their workforce and production levels to mitigate the effects of soft sales in key markets such as China and the financial implications of trade tariffs.
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