by Ford’s Problems with Electric Models in Europe
Ford is facing serious difficulties in the European market due to low sales of the Capri and Explorer electric cars. Both models, which are produced at the plant in Cologne, Germany, are not meeting the company’s expectations. As a result, Ford plans to cut up to 1,000 jobs, which represents approximately a quarter of the plant’s total workforce.
Impact on Employees and Structural Changes
The reductions will occur through a combination of retirements and voluntary departures, but some employees will still lose their jobs. Ford also announced the plant’s transition to a single shift starting next January. This is not the first reduction for the company in the region: last year, plans were already announced to reduce the workforce by 4,000 people.
Reasons for the Failure of Electric Models
The Capri and Explorer are adapted versions of the Volkswagen ID.4 and ID.5, with the latter already being a niche product. Ford blames low demand for electric vehicles, underdeveloped charging infrastructure, regulatory changes, and cuts in government subsidies. These factors make electric cars less attractive to European consumers.
Ford stated that demand for electric vehicles is “significantly lower than industry forecasts,” which has led to the need for structural changes.
The situation with Ford’s electric models in Europe highlights the complexity of automakers’ transition to alternative energy sources. Despite the company’s efforts, market conditions and external factors continue to complicate the mass adoption of electric vehicles. This may indicate that even major players need more flexible strategies to adapt to a rapidly changing environment.
