November 14, 2024 – Ford Motor Company has announced a production cutback for its Explorer and Capri electric vehicle (EV) models at its Cologne plant in Germany, citing sluggish market demand. It’s worth noting that both models had just entered production in June and September of this year, respectively.
According to a Ford spokesperson, the sharp decline in demand for electric vehicles in the European market has forced the company to make difficult decisions. To cope with this situation, employees at the Cologne plant will be subject to a rotating leave system, alternating between one week of work and one week of vacation until the Christmas holidays. This decision represents a significant blow to the Cologne facility, as Ford had previously invested $2 billion in upgrading the plant for EV production.
It’s also noteworthy that Ford’s push for electric vehicles in Europe has come at the expense of its traditional gas-powered models. In July 2023, the company discontinued its popular Fiesta model in Europe. Additionally, Ford is gradually phasing out other gas-powered vehicles, such as the Mondeo, which was discontinued in 2022, and the Focus, which is scheduled to be discontinued in 2025.
Data reveals that Ford’s market share in the European Union, Britain, and the European Free Trade Association regions has dropped from 4.1% to 3.3% in the first nine months of this year. According to figures released by the European Automobile Manufacturers’ Association (ACEA), Ford sold only 326,975 passenger cars in the region during this period, representing a year-on-year decline of 18%.
Furthermore, Ford’s F-150 Lightning EV model is also facing weak demand. The company plans to suspend production of the F-150 Lightning at its Dearborn plant in Michigan from November 15th until January 6th, 2025. This marks the second time Ford has halted production of the model. The first suspension occurred in February and lasted for nine weeks due to quality issues, which were only resolved in April.
