German car crisis getting worse Ford wants to cut 2900 jobs in Cologne

Ford has invested almost two billion euros in its Cologne site to produce e-cars. Although they are now rolling off the production line, sales are poor. Now the company is cutting costs.

Keystone-SDA

20.11.2024, 14:51

SDA

The US car manufacturer Ford wants to cut 2900 jobs in Germany by the end of 2027 in order to reduce costs. Most of the jobs are to be cut at the Cologne plant, the company announced.

In total, Ford is aiming to cut 4000 jobs in Europe. A further 800 of these are planned in Great Britain and 300 in other EU countries.

The European headquarters and the production of two electric car models are located in Cologne. According to the works council, Ford currently has around 11,500 jobs - which means that around one in four Ford jobs could be cut there.

According to the company, Ford has made high losses in the passenger car segment in recent years. In this segment, the costs of switching to electric cars are high. The company also referred to electric car competitors and strict_{CO2 emission targets}. In Ford's view, such requirements are a stumbling block for the separate business with combustion engines.

Slump in demand for e-cars

Ford is not alone with its problems. Ultimately, all German car manufacturers are currently under severe pressure. Demand has collapsed following the discontinuation of state subsidies for electric cars, while the sluggish economy and job fears are also making consumers reluctant to buy.

Ford manager Marcus Wassenberg said that the company wanted to maintain a strong business in Europe for future generations. "We must therefore implement difficult but decisive measures to ensure Ford's competitiveness in Europe."

The management underlined its appeal to federal politicians to improve market conditions. In Germany and Europe, there is a lack of "a consistent and clear political agenda to promote electromobility", the Ford management complained.

Ford still had 20,000 employees in Cologne in 2018

Ford has invested almost two billion euros in its Cologne site in 2023 and 2024 to be able to produce electric cars. Production of the small combustion-powered Fiesta model was discontinued. Two Ford electric car models are now rolling off the production line in Cologne - the first series-produced passenger car models from Europe.

However, the high expectations have not yet been fulfilled. The management had to reorganize itself when Martin Sander, head of Germany, unexpectedly moved to VW this summer. Other leading managers also turned their backs on Ford.

To solve the problems, Ford is now continuing to shrink. In 2018, the car manufacturer still had just under 20,000 employees; by the end of 2027, this figure is likely to be less than half.