Ford to Cut Up to 1,000 More Jobs in Cologne
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Facing lower than expected demand for electric vehicles, Ford is expanding its savings plan, potentially cutting up to 1,000 additional jobs at its Cologne plant by january 2026. This follows a previous announcement of a savings plan in January, which shifted the plant from a two-shift to a one-shift operation and aimed to reduce 2,900 jobs by the end of 2027.
The initial savings plan, initiated in 2024, sought voluntary departures through severance packages and partial retirement options in administration, advancement, and other areas. the expansion could bring the total job losses to nearly 4,000. The exact number of affected positions remains unclear.
Ford plans to discuss the new cuts with employee representatives, with the final number potentially falling slightly below 1,000. if implemented, the cuts would leave Ford with approximately 7,600 employees in Cologne, a notable reduction from the roughly 20,000 employed at the end of the last decade.
voluntary Severance Packages
On September 16, Ford management addressed production employees, explaining the necessity of the measures. “We are aware of the impact on our employees and are committed to supporting those affected as best as possible,” the company stated,offering voluntary severance packages with conditions mirroring the initial savings program.
The severance packages, negotiated by IG Metall, are considered favorable to employees. Initially, the cuts will exclude operating dismissals.However, if voluntary departures fall short of expectations, Ford may resort to operational dismissals.
Ford attributes the new personnel reduction to lower-than-anticipated demand for electric cars in Europe. The company’s multi-billion euro investment in Cologne’s electric vehicle production was based on projections of electric vehicles accounting for 35% of the market in 2023. According to the KBA, the actual proportion is only 18 percent.
Two billion Euro Investment
The Cologne plant’s conversion to electric vehicle production cost nearly two billion euros. Despite being late to the electric vehicle market, the investment signaled a commitment to the location’s future. The plant’s opening was attended by prominent political figures, including then-Federal Chancellor Olaf Scholz (SPD) and NRW Prime Minister Hendrik Wüst (CDU).
However, the launch of electric car production coincided with the federal government’s elimination of electric vehicle purchase bonuses, leading to a rapid decline in demand. Ford introduced the Explorer and later the Capri during this period. The base price for these models is currently just under 40,000 euros, but Ford is already offering discounts, which is problematic for company car users who are taxed on the list price.
The smaller, battery-electric Puma faces a similar challenge. The entry-level model is priced at 36,900 euros, which seems high for a small SUV with a 43 kWh battery and 100 kW charging power. In comparison, Renault’s similar-sized 4 starts at 29,400 euros.
According to the Federal Motor Transport Authority (KBA), approximately 74,000 Ford cars were registered in Germany between January and August, with around 20,000 being electric. It is not known how many electric cars from cologne were sold. Ford’s market share in Germany has increased from 3 to 4.5 percent since the beginning of the year. While the company is experiencing growth, it is indeed not sufficient to meet Ford’s expectations. Ford has implemented short-time work several times and now considers structural changes necesary, leading to permanent staff reductions.
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Ford to Cut Up to 1,000 More Jobs in Cologne
Lower than expected demand for electric vehicles forces further workforce reductions at the Cologne plant.
Facing lower than expected demand for electric vehicles, Ford is expanding its savings plan, potentially cutting up to 1,000 additional jobs at its Cologne plant by January 2026. This follows a previous announcement of a savings plan in January, which shifted the plant from a two-shift to a one-shift operation and aimed to reduce 2,900 jobs by the end of 2027.
The initial savings plan, initiated in 2024, sought voluntary departures through severance packages and partial retirement options in administration, development, and other areas. The expansion could bring the total job losses to nearly 4,000. The exact number of affected positions remains unclear.
Ford plans to discuss the new cuts with employee representatives, with the final number potentially falling slightly below 1,000. If implemented, the cuts would leave Ford with approximately 7,600 employees in Cologne, a significant reduction from the roughly 20,000 employed at the end of the last decade.
Voluntary Severance Packages
On September 16, Ford management addressed production employees, explaining the necessity of the measures. “We are aware of the impact on our employees and are committed to supporting those affected as best as possible,” the company stated,offering voluntary severance packages with conditions mirroring the initial savings program.
“We are aware of the impact on our employees and are committed to supporting those affected as best as possible.”
The severance packages, negotiated by IG Metall, are considered favorable to employees. Initially, the cuts will exclude operating dismissals. However, if voluntary departures fall short of expectations, Ford may resort to operational dismissals.
Electric Vehicle Demand Below Expectations
Ford attributes the new personnel reduction to lower-than-anticipated demand for electric cars in Europe. The company’s multi-billion euro investment in cologne’s electric vehicle production was based on projections of electric vehicles accounting for 35% of the market in 2023. According to the KBA, the actual proportion is only 18 percent.
the Cologne plant’s conversion to electric vehicle production cost nearly two billion euros. Despite being late to the electric vehicle market, the investment signaled a commitment to the location’s future. The plant’s opening was attended by prominent political figures, including then-Federal Chancellor Olaf Scholz (SPD) and NRW Prime Minister Hendrik Wüst (CDU).
Though, the launch of electric car production coincided with the federal government’s elimination of electric vehicle purchase bonuses, leading to a rapid decline in demand. Ford introduced the Explorer and later the Capri during this period. The base price for these models is currently just under 40,000 euros
