- Ford is getting its workers in Cologne, Germany, to work fewer hours.
- The carmaker said a "lower than expected demand for electric vehicles" brought on the shift.
- The carmaker has more than 4,000 employees at its Cologne plant.
Ford is slashing the work hours of its manufacturing plant workers in Cologne, Germany, citing a lowered demand for its electric vehicles.
"The significantly lower than expected demand for electric vehicles, specifically in Germany, requires a temporary adjustment of production volumes at the Cologne Electric Vehicle Centre," a Ford spokesperson said in a statement to German news outlet Deutsche Presse-Agentur.
The news outlet reported that the American carmaker applied to the government to approve a temporary part-time work scheme for its employees in Cologne.
Germany's Kurzarbeit work program allows employers to reduce their employees' work hours for a period of time instead of firing them. Under the scheme, the government pays the workers 60% of their original pay for the hours they do not work.
The carmaker has more than 4,000 employees at its Cologne plant, according to its website. It also has another plant in Saarlouis, in southwestern Germany, which employs about 6,200 people.
Ford did not respond to a request for comment from BI sent outside regular business hours.
Ford's move in Germany comes as the EV industry faces a tumultuous stretch.
Several carmakers — Ford included — have doubled down on efforts to make hybrid cars. That strategy caters to a market demographic of shoppers who are looking for affordable and practical electric options and may prefer hybrid vehicles over pure EVs.
Ford in August announced that it would cancel plans for its already delayed electric three-row SUVs and delay production of its next electric pickup truck.
In August, its finance chief, John Lawler, told reporters that Ford plans to replace the axed electric SUVs with hybrid models. The company said the strategy pivot would initially cost nearly $2 billion.
On October 28, Ford reported a third-quarter revenue of $46 billion and a net income of $0.9 billion, which was down $0.3 billion from the third quarter of 2023.
"We are in a strong position with Ford+ as our industry undergoes a sweeping transformation," Ford President and CEO Jim Farley said in the company's earnings report.
"We have made strategic decisions and taken the tough actions to create advantages for Ford versus the competition in key areas like Ford Pro, international operations, software, and next-generation electric vehicles," he added.