Ford to Slash 1,000 Jobs at German EV Plant as Electric Car Demand Falls Short of Forecasts

On September 15, Ford Motor Company declared that it would lay off up to 1,000 workers at its Cologne, Germany, electric vehicle production. According to the firm, the decision was made because battery-powered car sales are falling short of projections.

 According to an AP story, the automaker clarified that it will use buyout packages and voluntary departures to try to lessen the impact on workers. Additionally, production will be reduced at the Cologne facility that manufactures the electric Explorer SUV. The facility will switch from two daily shifts to one starting in January.

Ford: Weak Electric Vehicle Demand in Europe

EV sales have not increased as rapidly as many automakers had anticipated, despite significant investment. According to the company’s official statement, the demand for electric vehicles in Europe is much lower than what the industry had predicted. This round of layoffs comes after Ford’s November 2024 announcement of its reorganisation plan.

The corporation announced at the time that it will eliminate roughly 4,000 jobs across Europe and the UK, with 2,900 of those positions being in Germany. Prior to an agreement with the IG Metall union that guaranteed employment for almost 10,000 workers at the Cologne facility until 2032, workers had gone on strike earlier this year, according to news agency AFP.

About $2 billion (2.3 billion euros) has already been spent by Ford to update the Cologne facility for the manufacture of electric vehicles. Sales momentum has been lower than anticipated, despite the fact that the modifications were done in anticipation of increased demand for low-emission automobiles.

Why Electric Vehicle Demand is Not Picking up in Europe?

In Europe, EV adoption has been hampered by high initial costs and a dearth of charging points. The elimination of purchase subsidies in Germany is another factor that has further hindered growth.

Through July of this year, electric vehicles made up 15.6% of the European market, up from 12.5% the previous year. But the growth hasn’t been as rapid as anticipated. In the first seven months of the year, Ford sold 260,000 cars of all kinds, a slight 0.7% rise. According to the European Automobile Manufacturers’ Association, its market share stuck at 3.3%.

India’s EV Market: A Contrast to Europe

The electric vehicle (EV) market in India is expanding quickly thanks to government subsidies, growing environmental awareness, and technology breakthroughs. India hopes to dramatically boost EV adoption through programs like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, transforming its transport system in the direction of sustainability and innovation.

By 2030, India wants to increase the percentage of sales of electric vehicles (EVs) to 30% for private automobiles, 70% for commercial vehicles, 40% for buses, and 80% for two- and three-wheelers. By 2030, there will be 80 million EVs on Indian roadways, which is an ambitious goal.