00:00Welcome to our latest video from the Car Magazine Tuning Blog, in which we take a
00:11close look at the current crisis facing US automaker Ford. The focus is particularly
00:17on events in Cologne, where thousands of jobs are currently being lost and Ford's market share
00:22is rapidly declining. The challenge of e-mobility plays a central role in this.
00:27You can find out exactly what lies behind these problems in the following exciting new facts.
00:34Ford, a name steeped in tradition in the automotive industry,
00:38experienced a period of enormous growth during its golden age.
00:43With the increasing demand for affordable and reliable vehicles,
00:47Ford benefited from its iconic models that perfectly suited European tastes.
00:51The Ford Cortina was a favorite, especially in Great Britain.
00:58The Ford Capri, launched in 1999, became a bestseller and was seen as the car of dreams.
01:07The Ford Escort continued for years and became legendary, especially as a rally car.
01:12The Ford Granada marked the entry into the upper mid-range segment, and the Ford Star,
01:18which revolutionized the compact class in 1976, became a bestseller.
01:24With its modern, aerodynamic design, the Ford Sierra set new standards in the midsize class.
01:31The Ford Escort XR3i and high-performance RS models, such as the Sierra RS Cosworth,
01:36also significantly shaped the brand from the 1990s onwards.
01:42But despite this success, Ford came under increasing pressure and struggled to assert
01:46itself in an increasingly competitive market.
01:51The early 2000s marked the beginning of greater difficulties for Ford in Europe.
01:57The European market became increasingly competitive,
02:00and Ford struggled to keep up with lower-cost rivals such as Hyundai, Kia, and Toyota.
02:06Production in Europe proved expensive, particularly compared to its Asian competitors.
02:12The global financial crisis of 2008 further exacerbated the difficulties,
02:17and Ford struggled with heavy losses.
02:21Ford recognized the growing SUV trend too late,
02:24so brands such as Volkswagen with the Tiguan and Nissan with the Koshke overtook the company.
02:31Even successful models such as the Ford Focus struggled to maintain their market position.
02:36This led to the first plant closures in Europe in 2013, when the plant in Southampton,
02:43southern England, and a press shop in Dagenham near London ceased production.
02:50A year later, the plant in Belgium also closed, and even the American market showed signs of weakness,
02:56with further plant closures and the elimination of 22,000 jobs by 2010.
03:01Ford increasingly focused on SUVs and more compact models to contain losses.
03:08Towards the end of the 2010s, the model range in Europe thinned considerably.
03:12By 2024, the Clues, Fiesta, EcoSport, Edge, Advance, B-Max, C-Max, S-Max, and Galaxy,
03:22as well as the long-standing midsize model Mondeo, were discontinued without replacement.
03:26The focus remained on the Puma and Kuga SUVs, as well as some vans and exotic models imported directly from the USA.
03:34Another crucial point in Ford's development is electromobility.
03:38In 2020, Ford introduced its first all-electric model, the Mustang Mach-E, the I-Mustang was initially produced only in Mexico and China.
03:48However, the European production facilities were also to be converted for the electric future.
03:53In 2023, Ford celebrated the inauguration of its new electric mobility plant in Cologne,
03:59whose conversion cost around 2 billion euros.
04:03An additional 276 million euros was invested in the conversion of the English Ford plant in Howwood,
04:09where battery components for future Ford models were to be manufactured.
04:14The first European electric vehicles have been rolling off the production line at the Cologne site since 2024.
04:21The all-electric Explorer was the first, followed by the Capri, a larger SUV coupe, which will be unveiled at the end of the year.
04:28This not only continues Volkswagen's electric platform, but also uses the names of historic Ford models for modern IMUVs.
04:37However, this approach has met with mixed reactions, with loyal fans of the Mustang and Capri,
04:43in particular, irritated by the reincarnation of their classics as electric SUVs.
04:49Expectations for the Cologne plant have so far fallen short of expectations.
04:53Ford is facing a difficult situation in the automotive industry in Europe.
04:59Weak demand, high conversion costs to e-mobility, fierce competition, and strict regulations exacerbate the challenges.
05:07Added to this is problematic model policy.
05:10The electric models Explorer and Capri start at around 42,500 euros,
05:16while production of affordable vehicles such as the Fiesta and Focus has been discontinued.
05:21It's no wonder that interest in the new models is rather muted.
05:26The situation in Cologne continues to escalate.
05:29The car manufacturer has already announced short-time work for the plant, affecting approximately 2,000 employees.
05:36Further details have since been released.
05:38The cuts are drastic, and entire production areas are to be outsourced or sold.
05:46This is not a typical downsizing, but rather the complete closure of entire divisions.
05:53Works Council Chairman Benjamin Grushka explained that the job cuts will affect all administrative areas,
05:59including product development and production-related services.
06:02The development department in Cologne will be hit particularly hard,
06:07as it is to be downsized so drastically that independent vehicle development is questionable.
06:14Areas such as autonomous driving are to be completely eliminated in Cologne,
06:18while vehicle production remains unaffected.
06:22How the job cuts will affect individual departments is currently unclear.
06:26The US automaker announced it will eliminate a total of 2,900 jobs in Germany by the end of 2027.
06:36Currently, around 12,000 employees are employed in Cologne, compared to just under 20,000 in 2018.
06:43One in four employees is expected to lose their jobs as a result of the job cuts.
06:50According to the Works Council,
06:52The company's management in the US had already planned to eliminate one in four jobs at Ford in Germany in the spring of this year.
07:00Those affected have been hit hard.
07:02Discontent is growing among employees at the Ford plant in Cologne, and many are worried about their future.
07:10Employee representatives have already announced fierce resistance.
07:14The Works Council accuses management of having deceived the workforce for months.
07:18The automaker had contractually ruled out compulsory redundancies until 2020.
07:25But the reality is different.
07:28Benjamin Grushka, the Works Council chairman, warns of massive consequences for the region.
07:3412,000 employees will be affected, including around 50,000 family members.
07:40IG Metall believes that the cuts not only endanger jobs but also the future of the remaining German locations.
07:46The union is relying on talks with politicians to promote e-mobility and thus stimulate the purchase of electric cars.
07:57The next Works meeting at Ford will take place on December 10.
08:01By then, the unions are demanding clear answers from company management.
08:06Another aspect of the crisis is the drastic decline in sales of electric cars.
08:10At the same time, the future of combustion engines is being questioned by some parties.
08:17Dealers, manufacturers, and suppliers see their billions of investments in jeopardy.
08:23One reason for the reluctance lies in battery technology, which many car buyers do not yet fully trust.
08:29The market share of e-cars in the total number of cars on German roads remains very low.
08:35Of the approximately 50 million registered cars, only around 3% are fully electric, according to Attic.
08:42However, Ford is not alone in facing these problems.
08:46All German automakers are currently under severe pressure.
08:48Following the abolition of government subsidies for electric cars, demand has collapsed, and the sluggish economy and job fears are leading to consumer reluctance to buy.
09:02This reluctance is not only affecting manufacturers, but is hitting suppliers even harder.
09:06When fewer electric cars are purchased, the car makers' infrastructure is also under pressure.
09:14The automotive supplier Schler in Herzogenorach, Bavaria, is in dire straits, with 4,700 job cuts planned.
09:23The situation is quite different at steel producer Tussenkrupp, where 11,000 jobs are at risk.
09:31The technology companies Bosch and ZF are also in troubled waters.
09:34Finally, Ford's future prospects cast a bleak shadow over the company.
09:41Ford is responding to weak demand for electric cars by adjusting production of the Explorer and Capri.
09:48At the Cologne plant, this means that additional short-time working days will be introduced at the beginning of 2025.
09:55While the production lines in Valencia are currently running, they will cease production at the end of 2025.
10:01Vehicle production will be discontinued, the site significantly downsized, and converted into a service center.
10:09This also means the retirement of the Ford Focus, which is produced in Saarland.
10:13Its successor will be an electric model, which will roll off the assembly line in Valencia.
10:18Ford originally planned to completely phase out combustion engines by 2.30 a.m., but that could change.
10:26If demand persists, models with conventional drivetrains could still be offered after 2030.
10:32These were the most important new facts surrounding the crisis at Ford.
10:36What do you think of the current developments?
10:40We look forward to a peaceful discussion in the comments.
10:44Was the information on the ongoing crisis informative?
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