Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Facebook X (Twitter) Instagram
    Friday, June 6
    X (Twitter) Instagram
    NinepenniesNinepennies
    • Home
    • Featured

      The Highest-Paying Jobs in America—And It’s Not in Finance!

      March 27, 2025

      7 Must-Buy Costco Sale Items Before They’re Gone This February 

      February 10, 2025

      Steel Stocks on the Rise: 3 Winners After Tariff Announcements

      February 4, 2025

      The Best Oil Stocks to Invest $200 in Right Now

      January 28, 2025

      Top 10 Best Jobs of the Year: High Demand, Six-Figure Salaries, and Bright Futures

      January 23, 2025
    • Entrepreneur News

      Walgreens Store Closures: Full List of Locations Shutting Down This Month

      June 4, 2025

      Walmart Addresses Trump’s Demand to Cover Tariff Costs

      May 25, 2025

      Walgreens Expands Use of Prescription-Filling Robots to Reduce Costs and Support Pharmacists During Turnaround

      May 15, 2025

      Hooters Declares Bankruptcy

      April 8, 2025

      Costco to Open 6 New U.S. Stores Next Month and Another in April—See the Locations and Dates

      February 28, 2025
    • Financial Wellness

      Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

      April 24, 2025

      The Minimum Salary Needed to Be in the Upper-Middle Class in 2025

      March 21, 2025

      Should You Buy, Sell, or Hold Amazon in 2025?

      March 7, 2025

      From Hawaii to West Virginia: The Shocking 77-Year Gap in Retirement Savings Longevity

      February 24, 2025

      Are the 3 Highest-Paying Dividend Stocks in the Dow Jones Worth Buying?

      February 17, 2025
    • Popular Now

      European Markets Climb as Trump Moves to Cut Tariffs on Auto Parts

      May 1, 2025

      Robinhood Expands Trading to Include Bitcoin, Oil, and Gold Futures 

      January 30, 2025

      Powerball Winning Numbers for January 18: Oregon Player Takes Home $328.5 Million Jackpot

      January 21, 2025

      Morgan Stanley Surpasses Estimates With Robust Equities and Fixed Income Trading Revenue

      January 20, 2025

      10-Year Treasury Yield Edges Lower Amid Anticipation of Economic Data, Fed Remarks

      November 21, 2024
    • Wealth

      America’s 10 Wealthiest Self-Made Women, According to Forbes— #1 May Surprise You

      February 5, 2025

      8 Wealthiest Royals in History

      February 4, 2025

      One Powerful ETF That Grew $10,000 to $55,000 in a Decade: Is It Worth Buying in 2025?

      January 28, 2025

      Coinbase CEO Predicts Bitcoin Could Hit Multi-Million Dollar Value

      January 24, 2025

      Dogecoin Surged After Elon Musk’s Appointment: What’s Happening With This Popular Meme Coin?

      November 18, 2024
    NinepenniesNinepennies
    Home » Ford Reduces Work Hours for Some Employees at Its German Factories Due to Low Demand for Its EVs
    Entrepreneur News

    Ford Reduces Work Hours for Some Employees at Its German Factories Due to Low Demand for Its EVs

    BabatundeBy BabatundeNovember 15, 20245 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    A Ford signage outside one of its production plants
    deppaotoko/Reddit
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Ford is cutting employee work hours due to the recent low demand for EVs and decline in electric vehicle sales. Ford’s Cologne, Germany, manufacturing plant is particularly affected by this decline. While addressing members of the German press, a Ford spokesperson clarified the reason for the cut in work hours. 

    The Ford spokesperson said, “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.”

    ALSO READ: Workers Cry Out As John Deere Effects Massive Job Cuts in the Midwest and Moves Operations to Mexico

    Application for Germany’s Kurzarbeit Scheme  

    Ford had to seek the approval of local labor regulators before effecting the changes in work hours. The carmaker’s application to the government bordered on temporarily converting the engagement terms of employees in Cologne. 

    ‘Kurzarbeit’ printed on dice
    Anca Grigorescu/LinkedIn

    Interestingly, the German Federal Employment Agency already has labor laws called the Kurzarbeit work program. During periods of low revenue or economic reverses, the Kurzarbeit program allows employers to temporarily cut employees’ work hours. This initiative consists of government incentives that encourages employers to maintain their workforce during reverses, instead of laying them off as a survival tactic. 

    Essentially, whenever the government approves an employer’s request to cut work hours under Germany’s Kurzarbeit Scheme, it takes up the responsibility of paying the employees 60% of their original pay. So, it is one of many forms of government incentives aimed at keeping the unemployment rate low.  

    EV Market Facing Declining Demand 

    Ford stated that it has approximately 4,000 workers at the Ford Cologne car manufacturing facility. However, the carmaker has a second facility in Germany, located in Saarlouis and employing some 6,200 workers. 

    The German news outlet that reported Ford’s work hours changes did not state the number of workers affected, or what percentage of their workload is being eliminated. This is an indication that the environmental awareness that birthed EVs does not necessarily translate to technology adoption. 

    Low demand for EVs stalling production
    FMT

    Ford is not alone with respect to the low demand for EVs and quintessential supply chain issues. Indeed, many EV makers are similarly scaling back on their production outputs. When market challenges like price sensitivity cause the demand for your product to drop, it would be counterintuitive to increase production. Instead, several carmakers, including Ford, are increasing their throughput for hybrid cars. Many carmakers find this a better investment over increasing charging infrastructure and killing range anxiety.

    Carmakers’ decision to invest resources in the manufacture of hybrid cars is not spontaneous but a response to consumer preferences for that car variant. A common narrative among EV reviewers is that these green innovations are quite expensive. Consequently, a lot of EV lovers who find the pricing overwhelming and range anxiety perplexing often opt for the usually cheaper hybrid option.

    Cancelled Electric SUV and Pickup Truck Delays 

    A few months ago, Ford opted to change plans on its grand three-row fully electric SUV design sequel to the slow electric vehicle sales. Similarly, the American carmaker has placed the production of its next electric pickup truck on hold. Instead, Ford reached a compromise to sidestep the supply chain issues, by opting to replace its proposed fully electric SUVs with hybrid variants. The carmaker went public with this detour in August, as announced by the company’s finance chief, John Lawler.

    A Ford Hybrid SUV in a showroom
    Rutger van der Maar/Flickr

    Ford probably has its production lines already tailored for the production of fully electric SUVs. The sudden change of production strategy from fully electric to hybrid, in line with consumer preferences, is estimated to cost Ford roughly $2 billion.

    Third-Quarter Earnings Reflect Challenges  

    Ford reported its Q3 earnings on October 28, with revenue standing at $46 billion and net income hovering around $900 million. When compared year-on-year to the company’s Q3 earnings from 2023, Ford’s income was approximately $300 million short. 

    While the decline in earnings may be partly due to the low demand for EVs, Ford is doing all that is organizationally possible to eliminate the effect of price sensitivity and similar market challenges. For example, the statement of Ford CEO and President, Jim Farley, in the Q3 earnings report suggests that much. His statement partly reads, “We are in a strong position with Ford+ as our industry undergoes a sweeping transformation.”

    CEO Farley’s Strategic Vision for Ford’s Transformation  

    For those who have not caught on to the Ford+ gist, it is a business strategy by the carmaker to focus its effort on innovative and profitable vehicles and systems. So, Ford+ basically splits the company into three business segments; Ford Blue, Ford Model-e and Ford Pro.

    CEO Farley explaining the Ford Plus strategy 
    Steve LeVine/LinkedIn

    Of Ford Pro, Farley had this to say: “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.”

    ALSO READ:  Top 8 Largest Tech Company Layoffs of 2024

    Ford Pro is more like a vehicle fleet management system that allows commercial owners of Ford vehicles to seamlessly manage their automobiles. In other words, Ford is slowly delving into the software and charging infrastructure business, like Elon Musk’s Tesla.

    However, given all the talk about breaking even by cutting work hours in some of their facilities, it may come as a surprise that Ford has already cut thousands of jobs. These series of layoffs were particularly prominent when Ford started making environmental awareness a priority and joined the EV technology adoption bandwagon. Supply chain issues and low demand for EVs plaguing carmakers were also complicit in the downsizings.

    Elon Musk Employees EV market Ford kurzabeit
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleSoftBank-Backed Fintech, Zopa, Targets Doubling Its Profit While Planning a Current Account Launch by 2025
    Next Article Japan’s Former Currency Chief Kanda Signals Possible Intervention As Yen’s Slump Worsens

    Related Posts

    Entrepreneur News

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025
    Entrepreneur News

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Entrepreneur News

    Walgreens Expands Use of Prescription-Filling Robots to Reduce Costs and Support Pharmacists During Turnaround

    May 15, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Stay In Touch
    • Twitter
    • Instagram
    You Might Like

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Our Picks

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    X (Twitter) Instagram
    • Home
    • Editor’s Picks
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms of Use
    • Editorial Standards
    © 2025 Ninepennies.

    Type above and press Enter to search. Press Esc to cancel.