FRANKFURT — Ford workers at the automaker‘s plant in Cologne, Germany, will go on strike as tensions rise over planned job cuts across its European operations.
Ford said in November last year it would cut around 14 percent of its European workforce, mostly in Germany and Britain, blaming losses due to weak demand for electric vehicles and poor government support for the shift to the new technology.
The company declined to comment, citing ongoing negotiations with trade unions.
The IG Metall said the strike would begin on the morning of Wednesday, May 14 and last until the end of the night shift on Thursday.
Ford builds the Explorer electric SUV and Capri electric crossover in Cologne. Both are based on Volkswagen Group’s MEB platform that is also used by the VW ID4 and ID5.
Explorer and Capri sales are sluggish amid Europe’s weak electric car market. Ford sold 8,461 Explorers and 2,511 Capris in the first quarter, according to market researchers Dataforce.
Kerrigan Advisors’ proprietary annual OEM Survey of over 100 executives reveals that the majority of respondents are worried about the financial impact of Chinese automakers’ growing global market share, and most expect that the EV transition to be slower than expected. The survey also queried executives on their outlooks for dealership valuations and profitability, as well as their expectations for the future of dealer networks and facility requirements.
Ford’s workers in Cologne voted last week in favor of industrial action, with labor representatives insisting that management find alternative measures to restructure its business.
Ford in March said it would inject $4.8 billion into its cash-strapped German unit while ending a deal in place since 2006 that Ford would cover the German subsidiary’s losses, drawing protest from IG Metall, which said the new arrangement increased the risk of the automaker’s German business going bankrupt.
Ford Germany has been losing money because of high costs and weak demand. The business has €9 billion of debt, sources told Automotive News sister publication Automobilwoche.
Ford has made significant job cuts in recent years at the Cologne plant, which previously built the Fiesta small car, its bestseller in Europe. The factory’s workforce has been reduced to 11,500 from about 20,000 in 2018.
As part of its cost cuts, Ford is ending car production its plant in Saarlouis, Germany, which builds the Focus compact car.
The rollercoaster of Donald Trump’s tariff policies has added further strain, with Ford joining other automakers including Mercedes-Benz and Stellantis in pulling its forecast for 2025 amid the chaos.
Automakers worldwide including Volkswagen, Nissan and General Motors are axing jobs as new competition from China, weak demand, and the high cost of the transition to electrification weigh on their finances.
Automobilwoche and Reuters contributed to this report
