US automaker Ford is reducing work hours at its electric vehicle (EV) manufacturing plant in Cologne, Germany.
“The significantly lower than expected demand for electric vehicles, specifically in Germany, requires a temporary adjustment of production volumes at the Cologne Electric Vehicle Centre,” said a Ford spokesperson.
Ford applied for a furlough scheme, called short-time work, with Germany’s Federal Employment Agency. Under the furlough scheme, Ford workers will be sent home in financial distress but will not lose their jobs. The government will pay a percentage of their salary.
The company applied for short-term work for three weeks at its Cologne plant, which produces the electric Explorer and Capri. An internal memo circulating in Ford, allegedly seen by local newspaper Kölner Stadt-Anzeiger, stated: “We are producing more than we can sell.” The memo reportedly refers to the Ford Cologne EV plant.
Ford has been struggling with weak sales in Germany, like many automakers. Germany’s auto market has seen weak sales throughout 2024, with a slight boost over the summer. According to Baron’s, Germany’s new car sales slightly increased last month. KBA Federal Transport Authority reported a total of 231,992 new car registrations in Germany, up 6% compared to the same period the previous year.
However, battery electric vehicle (BEV) sales have continued to fall since the German government abruptly ended its EV subsidy program in December 2023. In October 2024, BEV sales dropped 5%, accounting for less than 15% of new registrations.
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