Ford plans 1,000 job cuts at Cologne EV plant as demand slows in Europe

Ford’s Cologne plant faces job cuts

Ford is planning to cut up to 1,000 jobs at its Cologne, Germany, electric vehicle plant. The company explained that the move comes as demand for EVs in Europe is much lower than industry forecasts.

The plant, which builds the electric Explorer SUV, will switch from two daily shifts to a single shift starting in January. Ford said it will try to manage the cuts through voluntary departures and buyouts.

EV demand lower than expected

Electric vehicles made up just 15.6% of the European market through July 2025. Industry projections cited by the Wall Street Journal once put EVs near 35% of 2025 registrations, but expectations have since fallen toward 20%.

The gap shows how consumer adoption has lagged behind predictions. While EV sales rose 12.5% year-over-year, experts now estimate the market will reach only a 20% share by year’s end, falling short of earlier expectations.

Cologne’s long Ford history

Ford has had a deep connection with Cologne since 1930, according to DPA. The city became an important hub for Ford’s operations in Europe, housing both production facilities and the company’s German division.

The Cologne plant represents one of Ford’s earliest steps outside the United States, highlighting its global ambitions. The current job cuts come less than two years after Ford invested $2 billion to transform the site into an advanced electric vehicle center.

A costly factory upgrade

In 2023, Ford invested €2 billion ($2.4 billion) to modernize the Cologne facility into a carbon-neutral site. The large investment was designed to anchor Ford’s push into the European electric vehicle market.

Production restarted in 2024 with the Explorer EV, which was built on Volkswagen’s MEB platform. Later in the same year, Ford expanded its lineup by adding production of the Capri EV, reviving a familiar European nameplate.

Ford’s European restructuring

Ford announced in 2024 that it would carry out a sweeping restructuring of its European operations. That plan is implementing 4,000 job cuts across Europe by the end of 2027 (about 14% of its European workforce), with 2,900 in Germany and 800 in the U.K.; Saarlouis is slated to wind down in 2025.

The recent decision to cut another 1,000 jobs in Cologne comes in addition to that plan. Including the new Cologne plan, media estimates put Ford’s planned European reductions near 18%, up from the previously announced 14%.

Shift reductions coming soon

Ford will reduce shifts at its Cologne plant starting in January 2026. The factory will move from two daily shifts down to one, a clear signal of lower output.

The change directly affects the production of Ford’s European electric vehicles, such as the Explorer and Capri. Ford stated the cutback is designed to better match manufacturing with current consumer demand for battery-powered cars.

Talks with labor leaders

Ford is actively discussing its workforce reduction plans with labor representatives, according to Investing.com. Instead, Ford aims to manage the cuts by offering severance packages and partial retirement benefits to employees.

The focus is on voluntary departures to minimize conflict and soften the impact. These discussions are part of Ford’s ongoing negotiations to balance cost savings with worker rights and expectations.

Subsidies play a big role

Ford pointed out that Germany’s withdrawal of EV purchase subsidies has hurt demand. Without government support, many buyers lost incentives that once made EVs more affordable.

This policy change has been one of the factors limiting growth across Europe’s electric car market. The slower adoption has created challenges not just for Ford but also for other automakers that had been counting on stronger sales.

Europe’s EV growth slowing

Ford said in its statement that EV demand in Europe remains “well below industry forecasts,” according to Electrek. While the adoption of electric cars is increasing, the pace is not fast enough to match automakers’ expectations.

In Germany, EVs made up only 15.6% of registrations through July, falling short of projections. This slower-than-anticipated growth has left companies like Ford reassessing their production strategies and making difficult adjustments.

Ford’s sales in Germany

Electrek reported that Ford registered 10,924 battery electric vehicles in Germany through August 2025. That represents less than 15% of the nearly 74,000 vehicles Ford sold in the country during the same period.

The numbers show the gap between Ford’s total sales and its EV sales. Even after major investments in its Cologne factory, Ford is still struggling to expand its EV share.

Competition from China

Ford is also facing increasing competition from Chinese automakers. Companies like BYD are aggressively entering the European EV market with lower-cost models.

This has made it more difficult for Ford to win buyers, even with newly launched vehicles such as the Explorer EV and Capri EV. The heightened competition highlights how global rivals are influencing Europe’s car market and challenging long-established brands like Ford.

Ford’s recent strike issues

Earlier this year, Ford faced a historic worker strike at its Cologne plant. The strike disrupted production schedules and brought major attention to ongoing tensions with labor groups.

Workers raised concerns about job security and working conditions as Ford pushed forward with its EV plans. The company now faces the challenge of balancing ambitious production goals with maintaining employee satisfaction and avoiding future labor unrest.

Production numbers so far

Cleveland.com reported that Ford sold 260,000 vehicles of all types in the first seven months of 2025. This figure marked a modest 0.7% increase compared to the same period last year.

While small, the growth demonstrated resilience in a competitive market. However, Ford’s overall European market share stayed flat at 3.3%, showing it still struggles to gain stronger traction against rivals.

Explorer EV only in Europe

The Explorer EV being produced in Cologne is a unique, Europe-only model that differs from the SUV sold in the United States, according to Autoblog. Built on Volkswagen’s MEB platform, it highlights Ford’s regional strategy for the European electric vehicle market.

Aside from the name, it shares little with its American counterpart. This approach shows how Ford is tailoring EV offerings to meet Europe’s specific consumer demands and regulations.

The Capri makes a comeback

In 2024, Ford revived the Capri nameplate by launching an all-electric model built in Cologne, reports Electrek. The Capri EV entered production later that year, appealing to drivers who value a mix of nostalgia and modern design.

The reintroduction of this iconic badge is part of Ford’s broader plan to strengthen its EV lineup in Europe. It aims to capture attention while competing with new and traditional automakers.

Want to know more? Ford’s safety fix highlights yet another costly issue.

Puma Gen-E joins the lineup

Ford also launched the Puma Gen-E, an electric version of its best-selling vehicle in Europe, according to Electrek. The Puma Gen-E was notably the first EV to qualify for the UK’s new Electric Car Grant program.

Its addition broadens Ford’s EV portfolio beyond larger SUVs like the Explorer and Capri. By electrifying its popular crossover, Ford is signaling a strong commitment to mass-market appeal and accessibility.

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Want more updates on Ford’s latest moves? Check out the stories below.

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This slideshow was made with AI assistance and human editing.