Ford says a “quickly deteriorating” EV market is guilty because it plans to gradual the output of extra electrical fashions. Beginning subsequent week, workers at Ford’s Cologne EV plant in Germany can be placed on short-term work hours.
Ford slows EV output as market circumstances intensify
In response to the German newspaper outlet Kölner Stadt-Anzeiger (through Automobilwoche), workers will alternate working one week with the subsequent week off.
The diminished work hours will final till the Christmas holidays. A Ford spokesperson informed the newspaper, “We are able to verify that Ford will apply to the Federal Employment Company for short-time work because of the quickly deteriorating market circumstances for electrical automobiles.”
Ford invested $2 billion to arrange the power to supply its next-gen electrical fashions for the European market. It at the moment 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 inner memo.
The information comes after Ford drastically downsized management within the area. Earlier this month, Ford misplaced two of its most skilled management crew 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 shouldn’t be the one automaker struggling because the European market shifts to electrical automobiles. Volkswagen, Nissan, Stellantis, and others have all introduced plans to cut back their workforce.
Though the corporate mentioned “quickly deteriorating market circumstances” are guilty, world EV gross sales are nonetheless rising.
In response to new knowledge from Rho Movement, October was one other record-breaking month for world 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 development 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 diminished 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 electronic mail to Electrek, “We proceed to regulate manufacturing for an optimum mixture of gross sales development and profitability.”
The primary day down can 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 way of 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 complete in 2024.
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