Ford to Cut Up to 1,000 Jobs at Cologne Electric Vehicle Plant as European EV Demand Lags

Ford Motor Co. said Tuesday it will cut up to 1,000 jobs at its electric vehicle plant in Cologne, Germany, citing demand for battery-powered cars in Europe that is “significantly below industry forecasts.” The automaker said the reduction will be managed, where possible, through voluntary departures and buyout offers.

The Cologne facility, which builds an electric version of the Explorer SUV, will drop from two shifts to a single shift daily beginning in January as the company adjusts production volumes to current market conditions. The announcement follows a restructuring plan unveiled in November 2024 that aimed to eliminate 4,000 positions across Europe and the U.K., with about 2,900 of those roles previously targeted in Germany.

Ford said it is continually evaluating production volumes and making adjustments to align with demand. The company reported selling 260,000 vehicles of all types in the first seven months of the year, up 0.7% year-over-year, and maintaining a 3.3% market share in Europe, according to data from the European Automobile Manufacturers’ Association.

Overall European uptake of electric vehicles has increased but remained below some industry expectations. EVs accounted for 15.6% of the European market in the year through July, up from 12.5% in the same period a year earlier. Industry analysts and automakers have pointed to several factors slowing growth, including a pullback in purchase subsidies in countries such as Germany and broader cost and infrastructure considerations for consumers.

Ford’s move underscores the challenges facing automakers that invested heavily in battery-electric production capacity amid optimism about rapid electrification. Manufacturers have been adjusting output, product mixes and labor plans across the region as they reconcile previous capacity commitments with current sales trends.

The company said it will pursue cutbacks at the Cologne plant in a way that prioritizes voluntary measures where possible and did not provide a timeline for completing the workforce reductions beyond the planned shift change in January. Ford’s statement emphasized continuous monitoring of demand and production needs as the company navigates the evolving European market for electric vehicles.