Ford has announced plans to cut up to 1,000 jobs at its Cologne plant in Germany, citing weak European demand for electric vehicles. The plant will transition to a single shift per day starting January 2026, with positions subject to voluntary redundancy. This move is a response to significantly lower-than-forecasted demand for electric vehicles in Europe, according to the company.
The decision comes on the heels of previously announced job cuts, with 2,900 positions already slated for elimination in Germany as part of a broader cost-reduction effort across Europe. In July, a deal was reached with the IG Metall union, extending employment guarantees for over 10,000 workers at the plant until 2032. However, the union has not yet commented on the latest development.
Despite investing $2 billion to refit the Cologne plant for electric vehicle production, Ford is facing challenges due to high upfront costs and limited charging infrastructure, which have hindered the adoption of electric vehicles in Europe. Battery-electric cars accounted for approximately 15% of car sales on the continent in the first half of the year.
Separately, automotive supplier Bosch announced that it would need to implement further job cuts to achieve annual savings of 2.5 billion euros, citing delays in electric vehicle adoption and subdued market development. Since November, Bosch has already announced around 6,600 layoffs.
The job cuts at Ford’s Cologne plant underscore the challenges facing the automotive industry as it navigates the transition to electric vehicles. With European demand for electric vehicles falling short of expectations, companies are being forced to adapt and reduce costs to remain competitive. The situation highlights the need for continued investment in charging infrastructure and incentives to drive the adoption of low-emissions vehicles. As the industry continues to evolve, it remains to be seen how companies like Ford and Bosch will balance their ambitions for electric vehicle production with the realities of the market.
