The city of Cologne in Germany saw two Ford plants come to a virtual standstill as the company decided to cut 14% of the workforce. For all the wrong reasons, this was a historic moment for Ford in Germany, as this was the first time a strike took place at its facility since its inception in 1930.
The spokesperson for Germany’s largest trade union, IG Metall, confirmed to Reuters that work has completely shut down. The report confirmed that thousands were protesting in front of the two facilities, and the US automobile maker was forced to take such a drastic call due to the “significant losses” in the last couple of years in a highly competitive EV market.
All’s not well for Ford Germany
With a slew of new-age Chinese EV makers flooding the market globally, Germany has a great demand for BYD vehicles, which outsold Tesla by almost double. Ford blamed the dwindling demand for EVs and the economy for low sales numbers. Hence, in November, the company decided to slash around 4,000 jobs in Europe by 2027.
The Cologne EV plant manufactures the electric Explorer and Capri. Ford isn’t the only legacy company struggling to compete against the Chinese EV makers, as recently Volkswagen, General Motors and Nissan announced restructuring plans.
Head of the Works Council at Ford Germany, Benjamin Gruschka, said that the company has to sit down with the workers, otherwise there could be more walkouts in the future. He further explained the strike is costing Ford a few millions a day, and if this extends, “then it will hurt more and more”. “The strike today costs a couple of million euros in losses,” said Grushka.
“So it hurts. I would be surprised if the Ford plants don’t invite us for further talks tomorrow over the course of the day.” On the possibility of further industrial action, Grushka said, ‘If the employer doesn’t make a move, we are ready to strike.”
