Ford's Electric Vehicles Based on VW Platforms Struggle in Europe, Leading to Job Reductions | Carscoops

      The company is reducing its workforce at the Cologne EV plant due to disappointing sales of the Capri and Explorer, resulting in a shift reduction as demand decreases.

      The Capri and Explorer EVs have not met Ford’s expectations in the European market, prompting the company to eliminate a shift and lay off up to 1,000 employees. Ford has attributed the situation to issues such as charging infrastructure and decreased incentives.

      Ford's troubles in Europe are worsening, potentially affecting 1,000 workers at the Cologne Electric Vehicle Center in Germany, where the Capri and Explorer EVs are produced. Both models have been struggling to establish a foothold in the market.

      These two vehicles are essentially modified versions of the Volkswagen ID.4 and ID.5, the latter of which was already a niche offering. Introducing a Ford variant like the Capri appears to have been a significant error.

      Job Risks

      Typically, corporate executives do not face consequences for such errors, leaving employees to bear the brunt. According to the Associated Press, up to a thousand positions may be lost, which is a notable reduction given that Ford employs 4,090 workers at the Cologne facility.

      This represents approximately a 25% workforce cut, with the company planning layoffs through buyouts and voluntary resignations. However, it is likely that some individuals will lose jobs they relied on.

      Market Challenges

      In a statement, Ford indicated that the decision was due to electric vehicle demand being "significantly below industry forecasts." The Wall Street Journal also noted that the company pointed to changing regulations and insufficient investment in charging infrastructure. Additionally, some countries have reduced or eliminated subsidies, making electric vehicles less attractive.

      As a result of these factors, the Cologne plant is set to operate on a single shift starting in January. This is the latest challenge for employees, following Ford's announcement of 4,000 job cuts in Europe last November.