Ford says a “rapidly deteriorating” EV market is to blame as it plans to slow the output of more electric models. Starting next week, employees at Ford’s Cologne EV plant in Germany will be put on short-term work hours.

The EV market is struggling in Europe, where sales of new EVs in Germany dropped nearly 37 percent in July 2024 from the same month a year ago. The German government recently ended its subsidy program for EVs, which had provided up to around €6,000 toward the purchase of new battery-electric and plug-in hybrid cars.

Ford Motor Co. said that the EU's "CO2 regulations" contributed to the decision to cut their European workforce 14% by 2027.

Ford has announced plans to cut 4,000 jobs across its European operations while scaling back production targets for its Explorer and Capri electric vehicles (EVs). The move affects 14 percent of the automaker’s workforce on the continent,

Automaker says most reductions will be in Germany and the UK, citing slowing electric vehicle sales and growing market competition.

Ford has officially announced plans for a major restructuring in the European market. The brand is planning further significant cuts due to decreased demand for electric vehicles and growing competition from China.