Ford Germany is undergoing significant restructuring, with plans to cut 2,900 jobs by 2027 as part of a broader cost-saving initiative, Boosted writes.
Most of these reductions will affect its Cologne plant, which also serves as Ford's European headquarters and produces two electric vehicle (EV) models.
This decision reflects the challenges posed by the transition to EVs, which has led to substantial job losses across the automotive sector.
In total, Ford aims to eliminate 4,000 positions across Europe, including 800 in the UK and 300 in other EU countries.
Approximately 25% of the 11,500 jobs at the Cologne facility could be impacted, according to Ford’s workers' council.
The company attributes the cuts to financial losses in the passenger car segment, high electrification costs, and increasing competition from other EV manufacturers.
Stricter regulations
Stricter CO2 emissions regulations have also added pressure. Earlier this year, Ford ended production of its Fiesta combustion engine model, historically made in Cologne, redirecting focus to EV manufacturing.
Ford has invested nearly €2 billion in the plant, which is now producing two mass-market EV models.
Ford has criticized the lack of clear political strategies in Germany and across Europe to support EV adoption, urging governments to improve market conditions.
Proposals include removing VAT on EVs, as suggested in the UK. These measures, Ford argues, could boost demand.
The automaker's struggles are not unique. Many German carmakers are grappling with declining EV demand, which has worsened since the German government discontinued subsidy programs in December 2023.
This shift has compounded the industry's challenges during the ongoing transition to electrification.
