Ford Reduces Workforce by 1000 at Explorer, Capri Plant Due to Weak Electric Vehicle Market
In Cologne, Germany, Ford's electric car factory is facing a challenging period, with up to 1000 jobs set to be cut. The factory, which underwent a major $1 billion renovation, is currently operating far below its capacity.
The factory, known for producing the Explorer and Capri crossovers, is no longer responsible for the production of the Fiesta model. The sales of the Explorer and Capri crossovers produced by Ford in Europe are significantly lower than the factory's production capacity, with less than 19,000 Explorers and far fewer Capris sold across Europe in the first half of 2025, according to Jato Dynamics.
The job cuts are likely due to the lower demand for electric vehicles. The European market for electric vehicles has been slower to take off than expected, with Ford and other manufacturers facing challenges in meeting demand.
Ford is not the only company competing in the electric vehicle industry in Germany. Volkswagen, Tesla, Hyundai, Kia, and Chinese manufacturers such as Guangzhou Automobile Group (GAC) with the Aion V are also vying for a share of the market.
Volkswagen, in particular, is making significant strides in the electric vehicle sector. The company plans to produce up to 800,000 electric cars annually from Spain starting in 2026. While specific figures for EV production in the first half of 2025 are not publicly detailed, Volkswagen leads in scale, with Tesla remaining a dominant player.
Chinese companies are cooperating with German firms on technology, but they largely serve distinct market segments currently.
As Ford repositions itself with electric crossovers like the new Capri and Puma, it will be interesting to see how the company navigates the competitive European electric vehicle market in the coming years.
