Ford Motor Company’s European strategy has come under renewed scrutiny as the automaker prepares to cut 1,000 jobs at its Cologne plant in early 2026.
The company confirmed that production in Cologne will be reduced from two shifts to a single shift from January amid slower-than-expected sales of its new electric models.
The move comes despite nearly €2 billion in investments aimed at repositioning the site as a hub for EV production in Europe.
Ford discontinued its once-popular Fiesta model in 2023 to concentrate on electrification, but market uptake has lagged behind projections.
According to official figures, Ford accounted for only 3.5 per cent of newly registered cars in Germany in 2024, down from 5 per cent in 2022. While its market share has recovered slightly to 4.5 per cent in 2025, volumes remain well below expectations for a leading global brand.
Industry observers argue that the job cuts reflect a deeper challenge for Ford’s European operations, which have been loss-making for several years.
Despite high-profile announcements and a pivot toward electrification, the company has struggled to compete with both established European rivals and rising Chinese entrants in the EV segment.
Trade unions have criticised the company’s model strategy, describing the production shift as a “bad omen” for Cologne.
IG Metall, which represents the plant’s workforce, said the new cuts add to uncertainty at a site that has already seen a historic strike and widespread cost-saving measures.
Ford management has promised generous severance packages for employees who exit voluntarily, while emphasising its commitment to long-term competitiveness in Europe.
However, analysts warn that the pressure to align costs with lower-than-expected demand will remain a central challenge for the company.
The Cologne cuts bring the company closer to its broader restructuring plan announced in 2024, which envisages nearly 2,900 job reductions across administration, development, and production by 2027. If carried out as planned, the Cologne workforce will shrink to about 7,600 from around 20,000 five years ago.
Ford’s experience highlights the volatility of Europe’s EV transition. While governments continue to push for rapid adoption, consumer demand has not kept pace, raising questions about the sustainability of aggressive electrification strategies in a market facing high costs and shifting preferences.