Ford says a “quickly deteriorating” EV market is responsible because it plans to sluggish the output of extra electrical fashions. Beginning subsequent week, workers at Ford’s Cologne EV plant in Germany shall be placed on short-term work hours.
Ford slows EV output as market situations intensify
Based on the German newspaper outlet Kölner Stadt-Anzeiger (through Automobilwoche), workers will alternate working one week with the following week off.
The diminished work hours will final till the Christmas holidays. A Ford spokesperson informed the newspaper, “We will verify that Ford will apply to the Federal Employment Company for short-time work because of the quickly deteriorating market situations for electrical autos.”
Ford invested $2 billion to organize the ability to provide its next-gen electrical fashions for the European market. It presently builds two EV fashions, the Electrical Explorer and Capri.
After kicking off manufacturing of its first all-electric Explorer in June, Ford added its second mannequin, the Capri EV, simply final month. Each are primarily based on Volkswagen’s MEB platform as a part of a 2020 partnership.
“We’re producing greater than we are able to promote,” the German publication quoted Ford saying in an inner memo.
The information comes after Ford drastically downsized management within the area. Earlier this month, Ford misplaced two of its most skilled management workforce members in Germany.
Christian Weingärtner and Rene Wolf each resigned on November 1, 2024, leaving the corporate with simply two administrators. That’s down from 9 earlier this yr.
Electrek’s Take
Ford isn’t the one automaker struggling because the European market shifts to electrical autos. Volkswagen, Nissan, Stellantis, and others have all introduced plans to scale back their workforce.
Though the corporate stated “quickly deteriorating market situations” are responsible, world EV gross sales are nonetheless rising.
Based on new knowledge from Rho Movement, October was one other record-breaking month for world EV gross sales. World electrical car gross sales are actually up 24% (13.3 million) YOY by October 2024.
China leads EV market progress by the primary ten months of 2024, with EV gross sales surging 38% year-over-year (YOY). Within the EU, EFTA, and UK, EV gross sales are down 3% YOY, with diminished authorities incentives in Germany, the biggest market.
Regardless of Ford, VW, and others slowing manufacturing, Chinese language EV makers, like BYD, anticipate gross sales to speed up with native manufacturing.
Ford’s EV struggles should not restricted to Europe. Within the US, Ford will cease constructing F-150 Lightning fashions subsequent week at its Rouge EV plant in Michigan for practically two months.
Ford spokesperson Jessica Enoch confirmed in an e-mail to Electrek, “We proceed to regulate manufacturing for an optimum mixture of gross sales progress and profitability.”
The primary day down shall be November 18, with manufacturing resuming on January 6, 2025. The pause consists of the vacation break week, beginning December 23, in any respect US Ford crops.
Ford’s mannequin e EV enterprise misplaced one other $1.2 billion within the third quarter. By means of the primary 9 months of 2024, the corporate has misplaced $3.7 billion on EVs. The corporate expects its EV unit to lose round $5 billion in whole in 2024.
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