Ford cuts production of new electric cars in Germany due to low demand

Ford has been forced to cut back production of its latest electric cars in Europe - the Explorer and Capri - before most Europeans have even seen these models on the road. The Blue Oval had previously phased out the iconic Fiesta hatchback to free up production capacity for electric cars, but its reliance on battery-powered models has not yet paid off.

Here's What We Know

The plant in Cologne, Germany, which Ford spent $2 billion to refurbish, was supposed to be the key production centre for Ford's European range of electric cars based on the Volkswagen MEB platform. However, the market has already started to make adjustments. According to the Kölner Stadt-Anzeiger, Ford has submitted a request to the authorities to reduce working hours for employees at this plant, as per current legislation. By the end of the year, they will go to work every other week, which will reduce the production cycle by three weeks.

A Ford spokesman confirmed that the company has to apply to the German Federal Employment Agency for authorisation to temporarily transfer staff to part-time work, citing "rapidly deteriorating market conditions for electric vehicles". According to documents released by a German media outlet, the plant will not operate at full capacity even after the Christmas holidays, reducing daily production from 630 to 480 units.

Ford's problems in Europe have been led not only by the disappearance of subsidies for electric cars and low consumer confidence, but also by ongoing discussions about the possible lifting of the ban on the sale of internal combustion engine vehicles, scheduled for 2035. In addition, Ford is also facing challenges in the US: the company has decided to postpone plans for new electric SUVs for the future and focus on hybrids.

Source: Kölner Stadt-Anzeiger