The American vehicle manufacturer Ford has announced a reduction in working hours for its employees at the German plant in Cologne, and consequently, a planned cut in production due to weak demand for electric vehicles (EVs).
“Significantly lower-than-expected demand for EVs, particularly in Germany, requires a temporary adjustment of production volumes at the Cologne Electric Vehicle Centre,” a spokesperson for the automotive group stated recently.
As a result, the American company has requested approval from Olaf Scholz’s government for a partial reduction in working hours for its workforce in the German region.
However, the company’s announcement does not specify how many employees will be affected by this measure or the percentage by which their workload will be reduced.
German legislation allows companies to reduce workers’ hours temporarily instead of laying them off.
Under the current support programme, the government pays workers up to 60% of their wages for the hours not worked.
Currently, Ford employs approximately 4,000 people at the Cologne plant, in addition to the 6,200 workers at the Saarlouis factory.
According to the group’s accounts consulted by Europa Press, the investment made to transform the Cologne factory to accommodate Ford’s electric vehicle production amounted to approximately two billion dollars (just over 1.861 billion euros).
However, in August, the manufacturer announced the cancellation of plans for the production of some of the brand’s electric SUVs and a delay in manufacturing its next battery-powered truck.
It was then that Chief Financial Officer John Lawler warned that the company was considering replacing fully electric models with hybrid cars, a strategic shift estimated to cost up to an additional two billion dollars.
At the close of the third quarter, Ford reported a net profit of 4.055 billion dollars (€3.749 billion euros), a 16.7% decrease compared to the previous year.
“It is important to highlight that, over time, we will have significant financial potential as we shift the curve in terms of quality costs, a key focus for our team,” stated the company’s President and CEO, Jim Farley, at the time.
Read more: Pressure on the EU: Manufacturers and politicians demand flexibility on 2025 CO2 targets
