3 days ago
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A slowing appetite for electric vehicles in global markets has forced Ford to cut output of its battery-powered models, as supply outstrips demand.
Electric Cars
Ford is continuing to reduce production output of its electric vehicles, amid slowing demand in major markets such as Europe and North America.
According to German newspaper Kölner Stadt-Anzeiger (via Automobilwoche), Ford issued a memo telling employees at an electric-car factory they would be working alternative weeks for the rest of 2024 in an effort to reduce output.
"We are producing more cars than we can sell," the internal memo reportedly said.
"We can confirm that Ford will apply to the Federal Employment Agency for short-time work due to the rapidly deteriorating market conditions for electric vehicles," a spokesperson for the Blue Oval told the newspaper, in response to the leaked memo.
The arrangement will be in place until the new year, with workers given an additional week off before the Christmas holidays begin.
Manufacturing of the electric Explorer began in June, while the new electric Capri only began production in October 2024 – both of which occur at a facility in Cologne, Germany.
Ford previously invested $US2 billion ($AU3.1 billion) in converting the factory to build electric cars.
This comes after Ford halted production of the electric F-150 Lightning pick-up in the US for six weeks, and killed off plans for a three-row electric SUV.
"We continue to adjust production for an optimal mix of sales growth and profitability," a Ford spokesperson told news outlet Reuters at the time.
In April 2024, the car giant cut manufacturing of the F-150 Lightning to a single shift, after announcing it was reducing output from three shifts to just two in October 2023.
According to German auto industry outlet Automobilwoche, dropping demand for electric vehicles in Europe has impacted Ford more than its competitors, as the company no longer offers a range of petrol and diesel models to compensate for poor electric car sales.
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Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and was previously an interstate truck driver. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.
