German Manager Magazin: Ford: Car manufacturer strokes a further 1000 jobs in the Cologne Werk004418

Due to weak demand for electric vehicles, the carmaker exacerbates ford His austerity course and strokes a further 1,000 jobs in Cologne’s production. In January, convert to one-shift operation from the previous two-shift operation, the company said. Almost a year ago, the management had announced a first savings plan, which had led to sharp protests and the first strike in the history of the Cologne Ford works. The employees had recently accepted this savings plan.

The project initiated in 2024 stipulates to save a total of 2900 jobs at the location by the end of 2027. This also affects positions in administration and development. The employees should go voluntarily and get severance payments or go in partial retirement. This savings project is now being expanded by up to 1000 jobs. The exact number has not yet been determined, first of all you should speak to the employee side.

If the plans are implemented, Ford would only have around 7,600 employees in a good two years. At the end of the past decade, there were around 20,000 employees.

Solid packages are ready

On Tuesday morning, Ford management explained the need for the measure to the employees of production. “We are aware of the impact on our employees and are committed to supporting those affected as best as possible,” said the company. “In this context, we will offer voluntary severance payments.” The conditions for volunteers are taken over from the first savings program. That from the IG Metall Destressed severance payments are considered to be relatively attractive to employees.

The savings are initially excluded by operating dismissals. However, if the reduction in personnel is significantly below expectations and if too few employees are voluntary, the pressure is gradually increased and in the end Ford could cancel due to operational reasons.

Almost a hundred years of Ford in the cathedral city

The Ford works have been in Cologne since 1930, and the German subsidiary of the US group has a great tradition. With the Fiesta small car, she managed a box office hit in the last quarter of the last century, the car was solid, simple and cheap. Later the Fiesta was technically improved and more comfortable, but also more expensive. The success story ended, in the summer of 2023 the last fiesta ran off the assembly line in Cologne.

Solide, simpel, billig: In Köln wurde vor allem der beliebte Ford Fiesta gebaut

Solide, simpel, billig: In Köln wurde vor allem der beliebte Ford Fiesta gebaut

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Solid, simple, cheap: The popular Ford Fiesta was mainly built in Cologne

Photo:

Oliver Berg/ dpa

Ford switched the plant in Cologne to electro -production, which cost almost two billion euros. The Americans were late with the swivel on e-mobility, the competition was already on. Nevertheless, the investments of the workforce encouraged that their location could also have a future after the combustion engine era. Political prominence came to the opening of the power plant and gave encouraging speeches, including the then Chancellor Olaf Scholz (67; SPD) or NRW Prime Minister Hendrik Wüst (50; CDU).

But the start of electric car production was not a good sign. Shortly before, the federal government had deleted the electrical purchase bonus, the demand for Stromer was rapid-and of all people, of all people, Ford placed the new e-models Explorer and Capri. The models cost around 40,000 euros or more and are therefore no longer in the solid cheap segment, which was actually the strength of Ford.

Sobering sales figures

The sale was slow. According to the Federal Motor Transport Authority (KBA), in the months of January to August Germany Approved around 74,000 Ford cars, around 20,000 of which had an electric drive. Other Ford electric cars that are not produced in Cologne are also included. How many Cologne Stromer were sold is not known. The Ford market share in Germany has climbed from 3 to 4.5 percent since the beginning of the year. It goes uphill, but at a low level.

Ford now justifies the new personnel reduction with the fact that the demand for electrical cars in Europe is significantly below the original industry forecasts. When the company invested billions in the Cologne electric plant, it assumed an overall electrical share of 35 percent of all sold cars on the market in 2023. In retrospect, this was too optimistic, according to the KBA, the proportion of Stromers is now only 18 percent.

After all, it goes up – but not steep enough for Ford. The company had set short -time work several times, but now it considers structural changes to be necessary and reduces permanent staff.

Industry specialist is pessimistic

Industry experts are not surprised by the tightened austerity course. “Unfortunately, this was foreseeable: Ford sells far too expensive cars and does not get it sold, the company produces on Halde,” says Stefan Bratzel from the Center of Automotive Management (CAM) in Bergisch Gladbach. The Ford brand stands for solid and cheap cars, so electric cars in the price category under 30,000 euros would better match the image. “The Americans have long had the wrong view of the European market and shoot in terms of product in terms of product – the development of Ford in Cologne is a tragedy.”

More on the subject

A one-shift operation in a modern expensive system that is designed for a high capacity is economically questionable. “It seems almost impossible here to work profitably with a layer,” says Bratzel. “Ford is just about containing losses.” The company quickly needs new inexpensive models to still succeed in the market. “Otherwise the dismantling continues.”

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