Ford Motor Company has announced a reduction in work hours at its electric vehicle (EV) manufacturing facility in Cologne, citing lower-than-expected demand for EVs in Germany. A spokesperson for Ford explained that the company is making temporary adjustments to production volumes at the Cologne Electric Vehicle Centre to align with the current market situation.
Ford has applied for Germany’s short-time work scheme, a furlough initiative supported by the Federal Employment Agency, to implement reduced hours for three weeks at the plant. Under the scheme, workers will receive government support for a portion of their salaries while avoiding job cuts. The plant produces the electric Explorer and Capri models.
“We are producing more than we can sell,” reads an internal memo reportedly circulated within Ford, as cited by local newspaper Kölner Stadt-Anzeiger. Ford’s challenges reflect broader industry trends, as Germany’s automotive market has faced sluggish demand throughout 2024, with only a modest recovery during the summer months.
According to Germany’s KBA Federal Transport Authority, new car registrations increased 6% in October compared to the same period last year, totaling 231,992 vehicles. However, battery electric vehicle (BEV) sales have continued to decline following the German government’s decision to end its EV subsidy program in December 2023. October data showed a 5% drop in BEV sales, which represented less than 15% of new registrations, underscoring the ongoing demand challenges for EVs in Germany.
