Ford says a “rapidly deteriorating” EV market is to blame as it plans to slow the output of more electric models. Starting next week, employees at Ford’s Cologne EV plant in Germany will be put on short-term work hours.
Ford slows EV output as market conditions intensify
According to the German newspaper outlet Kölner Stadt-Anzeiger (via Automobilwoche), employees will alternate working one week with the next week off.
The reduced work hours will last until the Christmas holidays. A Ford spokesperson told the newspaper, “We can confirm that Ford will apply to the Federal Employment Agency for short-time work due to the rapidly deteriorating market conditions for electric vehicles.”
Ford invested $2 billion to prepare the facility to produce its next-gen electric models for the European market. It currently builds two EV models, the Electric Explorer and Capri.
After kicking off production of its first all-electric Explorer in June, Ford added its second model, the Capri EV, just last month. Both are based on Volkswagen’s MEB platform as part of a 2020 partnership.
“We are producing more than we can sell,” the German publication quoted Ford saying in an internal memo.
The news comes after Ford drastically downsized leadership in the region. Earlier this month, Ford lost two of its most experienced leadership team members in Germany.
Christian Weingärtner and Rene Wolf both resigned on November 1, 2024, leaving the company with just two directors. That’s down from nine earlier this year.
Electrek’s Take
Ford is not the only automaker struggling as the European market shifts to electric vehicles. Volkswagen, Nissan, Stellantis, and others have all announced plans to reduce their workforce.
Although the company said “rapidly deteriorating market conditions” are to blame, global EV sales are still growing.
According to new data from Rho Motion, October was another record-breaking month for global EV sales. Global electric vehicle sales are now up 24% (13.3 million) YOY through October 2024.
China leads EV market growth through the first ten months of 2024, with EV sales surging 38% year-over-year (YOY). In the EU, EFTA, and UK, EV sales are down 3% YOY, with reduced government incentives in Germany, the largest market.
Despite Ford, VW, and others slowing production, Chinese EV makers, like BYD, expect sales to accelerate with local production.
Top comment by Actually Thoughtful
Ford cheered the outsourcing to China. They ignored EVs for over a decade. Then came in with high prices, low range models that they claim to lose money on. There may be deteriorating market conditions - but those conditions were created by...Ford. And now Trump, of course - higher interest rates for longer will also slow big ticket sales.
Ford’s EV struggles are not limited to Europe. In the US, Ford will stop building F-150 Lightning models next week at its Rouge EV plant in Michigan for nearly two months.
Ford spokesperson Jessica Enoch confirmed in an email to Electrek, “We continue to adjust production for an optimal mix of sales growth and profitability.”
The first day down will be November 18, with production resuming on January 6, 2025. The pause includes the holiday break week, starting December 23, at all US Ford plants.
Ford’s model e EV business lost another $1.2 billion in the third quarter. Through the first nine months of 2024, the company has lost $3.7 billion on EVs. The company expects its EV unit to lose around $5 billion in total in 2024.
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