Ford to Cut Shifts in Cologne Amid Slow EV Demand

Automaker to Reduce Production as Electric Vehicle Sales Lag

Cologne, Germany - February 28, 2023

Ford Motor Company has announced plans to reduce production shifts at its Cologne, Germany, plant due to weaker-than-expected demand for its electric vehicles (EVs). The move will primarily affect the production of the Fiesta subcompact hatchback and the Focus compact car, both of which are available in both gasoline and electric versions.

The decision comes amid a broader slowdown in the European auto market, particularly for EVs. Sales of EVs in Europe declined by 12% in 2022, according to data from the European Automobile Manufacturers' Association (ACEA). The decline was attributed to a number of factors, including rising inflation, concerns about the availability of charging infrastructure, and the ongoing war in Ukraine.

Ford is not the only automaker to be affected by the slowdown in EV demand. Volkswagen, Europe's largest automaker, recently announced plans to cut production of its ID.3 electric hatchback at its Zwickau, Germany, plant. Stellantis, the parent company of Peugeot, Citroen, and Fiat, has also announced plans to reduce production of its electric vehicles.

The slowdown in EV demand is a setback for the auto industry, which has been investing heavily in electric vehicles in recent years. However, analysts say that the industry is likely to rebound in the long term as governments around the world continue to push for the adoption of EVs.

In the meantime, Ford is taking steps to reduce costs and improve profitability. The company recently announced plans to cut 3,200 jobs in Europe, and it is also considering selling its stake in the Argo AI self-driving car venture.