Ford Motor Company has announced plans to cut up to 1,000 jobs at its electric vehicle (EV) plant in Cologne, Germany, a move that underscores the mounting challenges facing the auto industry’s transition to electric mobility in Europe. The decision, revealed on Tuesday, September 16, 2025, comes amid persistently weak demand for electric cars across the continent, falling short of both industry and company forecasts.
According to a Ford spokesperson, "In Europe, demand for electric cars remains well below industry forecasts." This blunt admission, reported by Reuters and echoed in statements to multiple outlets including Newsweek, sets the stage for a significant restructuring at one of Ford’s most historic European facilities. Starting January 2026, the Cologne plant will scale back operations from two shifts to a single shift, resulting in the loss of up to 1,000 jobs. The company has pledged to offer voluntary redundancy packages, with options for severance or partial retirement, and hopes most departures will be voluntary.
The Cologne factory, which just last month celebrated its 100th anniversary in Germany, has seen its workforce dwindle dramatically over the past decade. In the late 2010s, nearly 20,000 people worked at the plant; after the latest round of cuts, that number is expected to fall to around 7,600. The announcement adds to 4,000 job reductions Ford had already planned across Europe by the end of 2027, primarily affecting roles in Germany and the United Kingdom.
The job cuts are part of a broader cost-cutting strategy that Ford initiated a year ago, which has already led to protests and even the first strike in the Cologne plant’s history, as reported by Motor1 Germany. Most of the reductions will affect administrative and development roles, and the first layoffs could begin as early as January 2026. The company’s restructuring efforts have not been limited to Cologne; Ford is also set to shut down production at its Saarlouis, Germany, plant later in 2025, marking another blow to its European operations.
Ford’s struggle in Europe is emblematic of wider industry headwinds. The company’s shift to electric SUVs—replacing once-popular models like the Fiesta and Focus with the Explorer and Capri—has failed to generate the anticipated consumer enthusiasm. In Germany, new vehicle registrations dropped by 14.3 percent in 2024 compared to the previous year, according to figures cited by Motor1 and confirmed by the European Automobile Manufacturers' Association (ACEA). Over the past decade, Ford’s market share in Germany has plummeted from nearly 7 percent to under 3 percent, with only a modest rebound to 4.5 percent in recent months.
Ford’s statement to Newsweek highlighted the disconnect between expectations and reality in the EV market: "In 2023, when Ford opened the Electric Vehicle Centre in Cologne, industry expectations for new electric vehicle registrations in Europe were at 35 percent. Today, we are still well below this level—only 20 percent of new vehicle registrations in Europe are expected to be EVs by the end of 2025." The company pointed to consumer hesitancy, evolving CO₂ regulations, and a lack of promised investments in charging infrastructure and purchase incentives as key factors holding back demand.
Indeed, the European Union’s push for a greener automotive future has set ambitious targets. Regulations approved in 2023 require a 55 percent reduction in CO₂ emissions for new cars and a 50 percent reduction for new vans between 2030 and 2034, compared with 2021 levels. The ultimate goal is to phase out internal combustion engine vehicles entirely by 2035. Yet, as ACEA data shows, battery-electric vehicles accounted for just 15.6 percent of the EU market share in July 2025—up from 12.5 percent a year earlier, but still far from the levels needed to meet regulatory ambitions.
Ford is not alone in grappling with these challenges. German automakers BMW, Mercedes, and Volkswagen have all announced new battery-powered models featuring advanced technology and software, hoping to win over skeptical customers. Meanwhile, Chinese automakers, especially BYD, are making aggressive inroads into the European market. BYD, the world’s largest EV manufacturer, plans to open its first European plant in Hungary later this year, offering electric and hybrid vehicles at prices that remain relatively affordable despite tariffs imposed by the EU.
Trade tensions are further complicating the picture. European automakers have faced import tariffs imposed by the United States, with the rate initially set at 27.5 percent before being reduced to 15 percent after a trade deal in August 2025. However, the lower rate has yet to be applied, and Ford has cited these tariffs as a major contributor to its financial woes. The company reported a $36 million loss in the second quarter of 2025, a stark reversal from the $1.8 billion profit posted a year earlier, blaming tariffs expected to cost $2 billion this year.
Despite these setbacks in Europe, Ford’s performance in the United States paints a contrasting picture. The company sold 2.08 million vehicles in 2024—a 4.2 percent increase and its best showing since 2019. Electric and hybrid models have gained some ground with American consumers, and the iconic F-150 pickup remains a perennial best seller.
Ford’s latest announcement has sent ripples of uncertainty through its European workforce. Employees at the Cologne plant were informed of the job cuts on Tuesday morning, with the company emphasizing its commitment to supporting those affected. "We understand the impact this has on our employees, and we are committed to supporting those impacted," Ford told Newsweek. The company did not specify a timeline for when all job reductions would be completed, but stressed that it would work closely with employee representatives to negotiate the terms of severance and retirement packages.
For many in the industry, Ford’s predicament highlights the complex interplay of shifting consumer preferences, regulatory pressures, and global competition that defines today’s automotive landscape. While governments and manufacturers push for an electric future, the road ahead is anything but straightforward. Infrastructure gaps, inconsistent incentives, and economic headwinds continue to slow the pace of change, leaving companies like Ford to make tough decisions about their workforce and production strategies.
As the dust settles in Cologne, the fate of Ford’s European operations remains uncertain. What is clear, however, is that the transition to electric vehicles—heralded as the next great leap for the auto industry—will require not just technological innovation, but also a delicate balancing act between ambition and market realities.
