Ford has announced plans to reduce its European workforce by approximately 4,000 employees by 2027, with 2,900 of the cuts affecting its Cologne plant in Germany. The restructuring, approved by the company’s headquarters in Dearborn, is aimed at improving cost competitiveness and ensuring the long-term sustainability of its operations in the region.
The job reductions follow a recent move to implement short-time working at the Cologne facility, where production of the electric Explorer and Capri models, based on Volkswagen’s MEB platform, has slowed due to weak demand. Around 2,000 of the plant’s 13,000 employees have already seen reduced working hours, a measure initially set to run until January 2025 but now extended further into the year. Ford cited broader market challenges and economic conditions, noting that demand for electric vehicles has lagged behind expectations despite looming 2025 CO2 fleet regulations.
Ford’s Cologne plant, now dedicated exclusively to EV production, has faced mounting pressure to meet its annual capacity of 250,000 vehicles. The discontinuation of the Fiesta small car has left the site reliant on the Explorer and Capri models, which compete against established Volkswagen Group MEB SUVs in a crowded market. Ford acknowledged the difficulty of differentiating its offerings in terms of pricing or volume against VW’s larger-scale production.
In a statement, Ford highlighted “significant losses” in its European passenger car segment and underscored the complex market conditions. “The transformation is particularly intense in Europe, where automakers face significant competitive and economic headwinds while tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” the company said.
Despite the challenges, Ford emphasized its long-standing commitment to Europe and the importance of adapting to market demands. “Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” said Dave Johnston, Ford’s European Vice President for Transformation and Partnerships.
However, the automaker also called for stronger policy support to accelerate the transition to e-mobility. In a letter to the German government, John Lawler, Ford’s Vice Chairman and CFO, stressed the need for public investments in charging infrastructure, meaningful consumer incentives, and greater flexibility in meeting CO2 compliance targets.
Ford’s restructuring in Europe reflects its broader strategy to navigate economic pressures and position itself for success in the evolving automotive market, though it underscores the difficulties faced by legacy automakers in transitioning to electric vehicles.
