Ford faces a drop in demand for electric cars and is forced to put its employees on partial unemployment.
The automobile market is currently going through a particularly serious crisis. And this while the public authorities want to force motorists to switch to electric cars, and want to ban thermal cars in the coming years. However, this forced transition is not without difficulties. This is particularly the case for Ford. For almost a century, the firm has been a major player in the automobile industry in Europe. Among its emblematic successes is the Ford Fiesta, a small car which left its mark with its accessibility and massive sales.
Few electric car sales
But times have changed: the American manufacturer has begun a shift towards electric, a transition which is proving complex and fraught with pitfalls. HAS Colognewhere one of the brand’s main European factories is located, the situation is worrying. From Monday, November 18, approximately 2,000 employees will be placed on partial unemployment, according to Benjamin Gruschka, chairman of the works council of Ford Germany. This represents nearly 15% of the 13,000 employees on the site. The system provides for interruptions of three weeks, spread over several periods: a week of partial unemployment, followed by a week of work, then again a week of partial unemployment.
These measures will follow on from company holidays for the end of year holidays. Production should resume normally on January 6, Gruschka said. If this decision is a blow for employees, it reflects the difficulties encountered by Ford in its transition to electric. After stopping production of the Fiesta in 2022, the group invested nearly two billion euros to convert the Cologne factory to electric.
A complex situation
This colossal investment gave birth to two new models: the Ford Explorer, a compact SUV, and the Ford Capri. However, these vehicles struggle to attract consumers. “Electric cars are not selling as well as expected. We are facing a lot of consumer uncertainty,” Gruschka admitted. But this buying reluctance is not unique to Ford: Other automakers, including German giants, are also reporting falling demand.
Factors behind this trend include rising costs of electric vehicles, overall economic uncertainties and still insufficient charging infrastructure in many European regions. These elements are dampening customer enthusiasm for models that are nevertheless crucial in the context of the energy transition. The situation in Cologne illustrates the challenges facing Fordlike other brands faces in Europe, a key market for the manufacturer. The transition to electric is essential in a context of increasingly strict environmental regulations.
As the manufacturer prepares to restart production in January, the sales results of electric models will be closely scrutinized. A rapid recovery in demand is essential for the brand to turn its fortunes around and secure a sustainable future for its employees and its historic Cologne location.
Source: www.autoplus.fr
