Ford Motor Co. said it would cut up to 1,000 jobs at its electric vehicle plant in Cologne, Germany, which produces the Ford Capri EV and Ford Explorer EV, due to demand for electric cars being significantly below the company’s expectations.

Both models are derived from the Volkswagen ID.4 and ID.5. The ID.5 in particular was already a niche product, and Ford’s decision to rebadge it as the Capri has been seen as a strategic misstep.

The company said the job reductions would be carried out primarily through voluntary departures and buyouts. This move follows a restructuring announced in November 2024, in which Ford said it would cut 4,000 jobs across Europe and the UK, with 2,900 of those positions in Germany.

Ford explained that it continually evaluates production volumes and adjusts them to market demand, stating: “In Europe, demand for electric cars is significantly below industry forecasts.” The company added that the Cologne plant will reduce operations from two shifts per day to just one shift starting in January.

In the first seven months of this year, electric vehicles accounted for 15.6% of the European market, up from 12.5% during the same period last year. However, growth has been slower than expected, partly due to the withdrawal of EV purchase subsidies in Germany.

As for Ford’s sales, the company sold 260,000 vehicles of all types in the first seven months, a 0.7% increase, while maintaining a 3.3% market share, according to the European Automobile Manufacturers’ Association.

Source: AP News