Ford attributes its declining electric vehicle sales to a rapidly deteriorating market, which it claims is a reason for slowing down production of additional electric models. Starting the following week, employees at Ford’s Cologne electric vehicle manufacturing facility in Germany will have the option to work reduced hours on a temporary basis.
Ford halts electric vehicle production amid intensifying market volatility.
Based on reports from a leading German newspaper outlet, the publication’s staff will rotate through a work-and-rest schedule, alternating between one week of active duty and the subsequent week off.
The reduced work hours will continue until the Christmas holidays. The company’s spokesman told the newspaper, “Ford will indeed seek approval from the Federal Employment Agency for short-term assistance due to the rapidly declining demand in the electric vehicle market.”
Ford has committed $2 billion to develop the necessary infrastructure to support its next-generation electric vehicle lineup in the European market. It currently produces two EV models: the Electric Explorer and the Capri.
Following the launch of its inaugural all-electric Explorer model in June, Ford expanded its electric lineup by introducing the Capri EV in July. The companies’ models are primarily built upon Volkswagen’s MEB platform, stemming from a 2020 strategic collaboration.
According to a confidential memo obtained by a German publication, Ford reportedly lamented that the company was manufacturing more products than it had the capacity to effectively market and promote.
Following a significant reduction in management personnel within the region by Ford. Recently, Ford experienced a significant loss when two of its most accomplished executives in Germany suddenly left the company.
Two senior executives, Christian Weingärtner and Rene Wolf, unexpectedly tendered their resignations on November 1, 2024, effectively leaving the company in a precarious situation with only two remaining administrators to manage its operations? The number of sales has decreased to 9 from a previous total of 11 this year?
Electrek’s Take
As the European market pivots towards electric vehicles, Ford is unlikely to be the sole automaker facing challenges. Global automotive giants Volkswagen, Nissan, and Stellantis are taking drastic measures to mitigate the impact of shifting market dynamics and economic uncertainty by announcing sweeping reductions in their workforce.
Despite the corporation’s acknowledgement of “rapidly deteriorating market conditions”, global EV sales continue to rise.
According to new data, October marked another milestone in the surge of global electric vehicle (EV) sales, setting a new record. According to recent data, global electric vehicle sales have experienced a significant surge of 24%, with a total of 13.3 million units sold as of October 2024, compared to the same period last year.
As of October 2024, China has dominated electric vehicle (EV) market advancements over the initial ten-month period, witnessing a striking 38% year-over-year surge in EV sales. Across the EU, EFTA, and UK, electric vehicle (EV) gross sales have declined by 3% year-on-year, largely due to reduced government incentives in Germany, the region’s largest market.
Despite the slowdown in production by major automakers such as Ford and Volkswagen, Chinese electric vehicle (EV) manufacturers like BYD are expected to accelerate their sales with local manufacturing capabilities.
Ford’s electric vehicle (EV) challenges extend beyond Europe. Ford is temporarily halting production of F-150 Lightning models at its Rouge Electric Vehicle plant in Michigan next week, a hiatus expected to last nearly two months within the United States.
A Ford spokesperson, Jessica Enoch, verified in a statement, “We’re continuing to adjust our production levels to strike a balance between sales growth and profitability.”
The planned downtime will commence on November 18th, and production is expected to restart on January 6th, 2025. The production pause will take place during the holiday break week, starting on December 23, at all US Ford manufacturing plants.
Ford’s autonomous electric vehicle subsidiary lost another $1.2 billion in the third quarter. By mid-2024, the company had incurred a staggering loss of approximately $3.7 billion in its electric vehicle (EV) division. The corporation anticipates its electric vehicle (EV) division will incur a significant loss of approximately $5 billion in 2024.
