U.S. automobile giant Ford is tightening its belt and says it's cutting another 1,000 jobs at its Cologne factory, after already making cuts there last year. The move comes amid weak demand for electric vehicles in Europe.

Cologne

Ford has invested nearly 2 billion euros in its Cologne plant to transition to electric vehicle production. Despite these efforts, electric vehicles currently account for only 18 percent of new car registrations in Germany, falling short of initial expectations. As a result, Ford will reduce its operations at the plant to a single shift per day starting in January.

The Cologne facility, which once produced the popular Fiesta model, now manufactures higher-priced electric vehicles that have not attracted enough buyers. This has led to stockpiling of unsold cars and concerns about the plant's economic viability. The workforce at the site is expected to decrease to about 7,600 employees by 2027, down from around 20,000 a decade ago.

Ford cuts more jobs in Germany

Ford has invested nearly 2 billion Euro in its Cologne plant in recent years, converting the production facility to solely manufacture electric vehicles. At the start of the initiative, Ford estimated that by now every third newly registered car would be electric. In reality it's only 18 percent, according to Germany's Federal Motor Transport Authority. Now the plant will only operate one shift per day instead of two starting in January. Since 1930 Ford has been building cars in Cologne and for a long time the global bestseller Fiesta was the plant's main product, a solid and affordable small car. But the electric Ford models currently in production, the Explorer and the Capri, have a price tag of over 40,000 Euro and aren't attracting enough buyers. Ford is producing stockpiles in Cologne, according to the Center of Automotive Management in North Rhine-Westphalia. The planned one-shift operation in such a modern facility, designed for high capacity, is economically questionable, the center says. Ford's priority is simply to limit losses. The automaker urgently needs more affordable models to succeed in the market, the center argues, otherwise further job cuts are likely. What's clear, by 2027 about 7,600 employees are expected to remain here. A decade ago around 20,000 people worked at the site.

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