Ford Motor Company has announced plans to eliminate up to 1,000 jobs at its electric vehicle (EV) production facility in Cologne, Germany.
The decision comes in response to weaker-than-expected demand for battery-powered cars across Europe, prompting the automaker to scale back operations and shift to a single-shift schedule starting January 2026.
The Cologne plant, which manufactures the electric version of the Explorer SUV, was a central part of Ford’s European electrification strategy.
The company had invested approximately $2 billion (2.3 billion euros) to modernize the facility, anticipating a surge in demand for low-emission vehicles.
However, consumer adoption has lagged behind industry forecasts, forcing Ford to reassess its production volumes.
EV Adoption Slower Than Projected
Ford’s statement acknowledged that demand for electric cars in Europe remains “significantly below industry forecasts.”
When the Cologne Electric Vehicle Centre was launched in 2023, expectations for new EV registrations in the region were around 35%.
That figure has since been revised to just 20% by the end of 2025.
Several factors have contributed to the slower growth.
High upfront costs, limited charging infrastructure, and the withdrawal of government purchase subsidies—particularly in Germany—have dampened consumer enthusiasm.
Although electric vehicles accounted for 15.6% of the European market through July 2025, up from 12.5% a year earlier, the pace of growth has not met automakers’ projections.
Voluntary Departures at Ford and Union Agreements
Ford will implement the job reductions through voluntary departures and buyout packages.
The company is currently in discussions with labor representatives to manage the transition.
This round of layoffs builds on a broader restructuring plan announced in November 2024, which aimed to cut 4,000 jobs across Europe and the UK, including 2,900 in Germany.
Earlier this year, workers at the Cologne plant went on strike before reaching an agreement with the IG Metall union.
The deal guaranteed employment for more than 10,000 workers at the facility until 2032.
However, the latest announcement has raised concerns about long-term job security, especially as Ford continues to adjust its operations in response to market conditions.
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
