Ford works council demands strong signal for e-mobility - and cheaper charging electricity

Before the visit of Chancellor Olaf Scholz (SPD) to car manufacturer Ford, its works council is calling for the introduction of an electric car purchase premium to boost the sluggish demand. "Models like France have shown that subsidies can be linked to income or provided in the form of a flat rate," says an appeal from the central works council to the government. Until the end of 2023, there was a subsidy in Germany for buying or leasing electric vehicles. After its abolition, the demand for e-cars plummeted.

Billion-Euro Electric Investment

Ford had long relied on vehicles with combustion engines and only invested relatively late in electromobility—albeit with financial determination; the Cologne plant was renovated for nearly two billion euros and set on an electric course. In June of this year, Ford finally started mass production of its first European e-car in Cologne, aimed at the mass market. The timing was poor, as the market was in a weak phase at that time. Sales of the Ford Explorer—a kind of small electric SUV—have been sluggish ever since. This situation is not unique to Ford; other traditional car manufacturers are also facing difficulties in selling their electric vehicles.

In November, Ford announced massive job cuts plans; of the current approximately 12,000 jobs, about a quarter are to be eliminated by the end of 2027. The site had already undergone a reduction in the past years, having nearly 20,000 jobs in 2018. The works council and IG Metall announced resistance against the management's latest reduction plans.

Hope for Scholz—and Cheaper Charging Electricity

The visit of Chancellor Scholz, who was already a guest at Ford in June 2023 for the opening of the "Cologne Electric Vehicle Center," is now understood as a solidarity gesture from the Social Democrat. Ford employee representatives hope that the coalition of SPD and Greens, which no longer has a majority in the Bundestag after the break of the traffic light coalition with the FDP, can still set important impulses for electromobility.