Ford Motor Co will cut as many as 1,000 jobs at its electric vehicle (EV) plant in Cologne, Germany, as demand for battery-powered cars in Europe falls short of industry forecasts.
The decision, announced Tuesday, highlights a sobering reality for Europe’s auto industry. While governments push for a rapid shift to electric mobility, consumer appetite remains weaker than expected.
“Demand for electric cars remains well below industry forecasts,” Ford said in a statement. The company added that from January 2026, the Cologne EV plant will move to single-shift operations, leading to significant job losses.
Workers impacted by the cuts will be offered voluntary redundancy packages, Ford confirmed. The move comes as part of a wider restructuring in Germany, where Ford has already trimmed thousands of jobs. Its Saarlouis factory, once a key site, is also set for closure.
The Cologne plant was once heralded as Ford’s “Electric Vehicle Centre” in Europe, receiving a €2 billion investment just two years ago. Today, it tells a different story, that the EV transition is proving rockier and more uneven than policymakers hoped.
Ford is not alone. Other European automakers, including Volkswagen and Stellantis, have slowed production or delayed launches in response to sluggish EV sales. Analysts point to high purchase prices, slow charging networks, and consumer hesitation as barriers.
“Europe is caught between ambition and affordability,” said Markus Duesmann, an industry consultant. “Car buyers want clean cars, but many still prefer cheaper petrol models, especially during inflation.”
For Ford, the Cologne cuts are both a cost-saving move and a warning sign. If demand does not rebound, more restructuring may follow. The impact stretches beyond jobs, touching suppliers, local economies, and the broader race to make EVs mainstream in Europe.
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