Ford says a “quickly deteriorating” EV market is guilty because it plans to gradual the output of extra electrical fashions. Beginning subsequent week, staff at Ford’s Cologne EV plant in Germany might be placed on short-term work hours.
Ford slows EV output as market situations intensify
In accordance with the German newspaper outlet Kölner Stadt-Anzeiger (by way of Automobilwoche), staff will alternate working one week with the following week off.
The decreased work hours will final till the Christmas holidays. A Ford spokesperson instructed the newspaper, “We will affirm that Ford will apply to the Federal Employment Company for short-time work as a result of quickly deteriorating market situations for electrical autos.”
Ford invested $2 billion to arrange the power to supply its next-gen electrical fashions for the European market. It at present 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 based mostly on Volkswagen’s MEB platform as a part of a 2020 partnership.
“We’re producing greater than we will promote,” the German publication quoted Ford saying in an inside memo.
The information comes after Ford drastically downsized management within the area. Earlier this month, Ford misplaced two of its most skilled management group 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 12 months.
Electrek’s Take
Ford is just not the one automaker struggling because the European market shifts to electrical autos. Volkswagen, Nissan, Stellantis, and others have all introduced plans to cut back their workforce.
Though the corporate stated “quickly deteriorating market situations” are guilty, international EV gross sales are nonetheless rising.
In accordance with new information from Rho Movement, October was one other record-breaking month for international EV gross sales. World electrical automobile gross sales at the moment are up 24% (13.3 million) YOY by way of October 2024.
China leads EV market progress by way of 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 decreased authorities incentives in Germany, the biggest market.
Regardless of Ford, VW, and others slowing manufacturing, Chinese language EV makers, like BYD, count on gross sales to speed up with native manufacturing.
Ford’s EV struggles aren’t 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 might be November 18, with manufacturing resuming on January 6, 2025. The pause contains the vacation break week, beginning December 23, in any respect US Ford vegetation.
Ford’s mannequin e EV enterprise misplaced one other $1.2 billion within the third quarter. By 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.
