Ford says a “quickly deteriorating” EV market is accountable because it plans to gradual the output of extra electrical fashions. Beginning subsequent week, workers at Ford’s Cologne EV plant in Germany will probably be placed on short-term work hours.
Ford slows EV output as market circumstances intensify
Based on the German newspaper outlet Kölner Stadt-Anzeiger (by way of Automobilwoche), workers will alternate working one week with the following week off.
The diminished work hours will final till the Christmas holidays. A Ford spokesperson informed 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 circumstances for electrical autos.”
Ford invested $2 billion to organize 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 yr.
Electrek’s Take
Ford will not be the one automaker struggling because the European market shifts to electrical autos. Volkswagen, Nissan, Stellantis, and others have all introduced plans to scale back their workforce.
Though the corporate mentioned “quickly deteriorating market circumstances” are accountable, world EV gross sales are nonetheless rising.
Based on new information from Rho Movement, October was one other record-breaking month for world EV gross sales. International electrical car gross sales are actually 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 most important 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 will not be 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 development and profitability.”
The primary day down will probably 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 means 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 whole in 2024.
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