Ford is reducing the work hours of its manufacturing plant employees in Cologne, Germany. The company has applied for government approval to implement a temporary part-time work programme under Germany’s Kurzarbeit scheme, which allows employers to reduce work hours without layoffs.
Under this programme, employees receive 60 per cent of their original pay for the reduced hours. The decision comes due to weaker-than-expected demand for electric vehicles, particularly in Germany.
The Cologne plant employs over 4,000 workers, and Ford also operates a larger facility in Saarlouis, employing around 6,200 people. This move is part of a broader trend in the electric vehicle industry, which has been facing challenges.
In March, Ford announced to make significant reductions in its hourly workforce at the factory producing the Ford F-150 Lightning. The decision came in the wake of Ford’s earlier move to scale back production of the F-150 Lightning electric pickup due to lower-than-anticipated growth in EV sales. Although electric vehicle sales are on the rise in the US, they’re not meeting the industry’s ambitious projections, with many consumers opting for hybrid alternatives instead.
Ford, along with other automakers, is increasingly focusing on hybrid vehicles to appeal to consumers seeking more affordable and practical electric options. In August, Ford announced it would cancel plans for its delayed electric three-row SUVs and delay production of its next electric pickup truck, opting instead to develop hybrid models. This strategic shift is expected to cost the company nearly $2 billion.
In its recent third-quarter report, Ford posted $46 billion in revenue and $0.9 billion in net income, a slight decline from the previous year. Despite these challenges, Ford’s leadership remains confident in the company’s long-term strategy, particularly its focus on electric and hybrid vehicles, international markets, and digital innovations.
