Ford to Cut 1,000 Jobs at Cologne EV Plant Amid Sluggish European Demand

Ford Announces Significant Job Reductions in Cologne

Ford Motor Company has announced plans to cut up to 1,000 jobs at its electric vehicle (EV) plant in Cologne, Germany. The decision, revealed on Tuesday, September 16, 2025, is a direct response to what the automaker describes as 'demand for electric cars significantly below industry forecasts' in Europe. This move will see the Cologne facility transition from a two-shift operation to a single-shift schedule beginning in January 2026.

Broader Restructuring and Workforce Impact

These latest job reductions are part of a larger restructuring effort by Ford in Europe. In November 2024, the company had already outlined plans to reduce its European workforce by approximately 4,000 positions by the end of 2027, with 2,900 of those jobs located in Germany. The additional 1,000 cuts bring the total reduction to roughly 18% of Ford's 28,000-employee workforce across the continent. Ford intends to implement these job losses primarily through voluntary departures, offering severance packages and partial retirement benefits to affected employees.

Challenges in the European EV Market

Ford attributes the need for these cuts to a significant slowdown in the adoption of electric vehicles across Europe. While industry expectations in 2023 projected EVs to account for 35% of new vehicle registrations in Europe by 2025, current forecasts suggest this figure will be closer to 20%. Although electric vehicles captured 15.6% of the European market through July 2025, an increase from 12.5% in the same period last year, this growth has not met aggressive production targets. Factors contributing to this deceleration include:

• The withdrawal of purchase subsidies in Germany.
• A perceived lack of adequate charging infrastructure.
• Evolving CO2 regulations.
• Increased competition from Chinese EV manufacturers like BYD.

Ford's market share in Germany, for instance, stood at 3.5% in 2024, recovering slightly to 4.5% in 2025, but still falling short of expectations for a major global brand.

Cologne Plant's Future and Union Reaction

The Cologne plant, which received a substantial investment of nearly €2 billion ($2 billion) to transform it into a dedicated EV production hub, currently manufactures the electric Ford Explorer SUV and the Capri crossover, both built on Volkswagen's MEB platform. The trade union IG Metall, representing the plant's workforce, has criticized Ford's model strategy, describing the production shift as a 'bad omen' for Cologne. This situation also follows a historic worker strike in Cologne earlier this year that disrupted production. In addition to the Cologne reductions, Ford also plans to close its Saarlouis plant entirely by November 2025. Despite these challenges, Ford maintains its commitment to long-term competitiveness in Europe, continuously evaluating production volumes and adjusting to market realities.