Ford in Cologne is in deep crisis. The company is cutting another 1,000 jobs and switching production to single-shift operations starting in January. Despite billions invested in electric cars, weak sales are forcing the manufacturer to tighten its austerity measures and make corresponding job cuts. (welt: 16.09.25)
A Broken Tradition in Cologne
Ford has been manufacturing in Cologne since 1930. Generations of employees built the Fiesta here, which was long considered a symbol of affordable mobility. But its history ended in 2023. The switch to electric vehicles was intended to secure the site. Political support was strong, but without a purchase incentive, demand fell rapidly.
The new Explorer and Capri models started at €40,000. These prices hardly matched the brand’s former image. Cologne in particular demonstrates how severely this miscalculation is jeopardizing jobs.
Sobering Figures and Increasing Pressure
Between January and August 2024, the Federal Motor Transport Authority recorded 74,000 new Ford registrations, including only 20,000 electric vehicles. While the market share climbed to 4.5 percent, there is no question of stability. Ford expected an electric share of 35 percent, but it actually only reached 18 percent.
The company has already resorted to short-time work several times. Now, permanent job cuts are following. If the plans are implemented, the workforce in Cologne will fall to 7,600. At the end of the 2010s, over 20,000 jobs secured the site.
Severance Pay and Austerity Measures
Management announced that it would offer voluntary severance packages. “We are aware of the impact on our employees and are committed to providing the best possible support to those affected,” Ford emphasized. The terms are taken from the first cost-cutting program and are considered attractive.
Officially, the company has ruled out layoffs. However, if too few employees leave voluntarily, the austerity measures could be intensified. Many employees in Cologne also fear for their jobs.
Experts see bleak prospects
Industry experts consider job cuts inevitable. Stefan Bratzel of the Center of Automotive Management criticized: “Ford sells cars that are far too expensive and can’t sell them; the company is producing in stockpiles.” In his view, electric cars under €30,000 are a better fit for the brand’s image.
Single-shift operation is also considered risky. “It seems almost impossible to operate profitably with one shift here,” Bratzel explained. Without new models, Cologne could soon face further cuts. The job cuts are unlikely to end there.