Ford’s new electric models, the Capri and Explorer, aren’t selling as expected, leading the company to scale down production significantly.
While luxury brands like Ferrari and Lamborghini might still be thriving, Ford is among the many European carmakers facing challenges in the electric vehicle market. Ford, in particular, is finding it hard to attract enough buyers for its Volkswagen-based electric models, the Capri and Explorer, according to Automotive News.
In response, Ford is reducing production at its factory in Cologne, where the cars are manufactured. This plan is expected to stay in place at least until Christmas.
Local news source Kölner Stadt-Anzeiger reports that factory workers have been informed there isn’t enough work to keep them busy full-time. Employees will now alternate between one week of work and one week off.
This is tough news for Ford, especially considering the company invested $2 billion to revamp the Cologne factory for electric vehicle production.
So far, it’s been a poor return on investment. Ford’s latest quarterly report shows that its electric car division, Model e, is losing more than $35,000 on every electric vehicle produced.
Automotive News suggests that Ford may be feeling the strain more than other automakers due to its heavy investment in electric models. The brand has largely phased out cars with internal combustion engines, putting even more pressure on electric vehicle sales to succeed.
Some of Ford’s European leadership appears to have recognized the need for flexibility. Earlier this year, the company backed away from its target of exclusively selling electric cars. However, it is still planning to close one of its most iconic factories.
