Ford (NYSE:F) has announced a delay in the series production of its highly anticipated SUV, the Explorer, at its Cologne facility in Europe. This decision is motivated by the company’s desire to wait for the availability of a new generation of Volkswagen battery technology. According to the German chief of Ford, this delay will be approximately six months, with production now slated to commence in the summer of the following year.
This announcement was made during the Munich International Motor Show (IAA), where discussions were held about the implications of this delay on the Cologne workforce. Earlier this year, Ford had declared its plans to reduce its European workforce by eliminating one in nine jobs, affecting 2,300 positions in its Cologne and Aachen sites in Germany. However, the company assured that there would be no compulsory layoffs at these locations before the end of 2032.
In the European market, Ford currently offers two all-electric SUVs and an e-Transit van. However, they have ambitious plans to introduce seven new models by 2024, including two to be manufactured in Cologne and one in Romania. The production of the second new model in Cologne, which is also based on Volkswagen’s MEB platform, will commence a few weeks after the first model.
While specific production targets for these new models have not been disclosed, Ford has indicated that it will not initially utilize the entire production capacity of the Cologne plant, which has a capacity of 250,000 units. Instead, production will be scaled up in response to the growing demand for electric vehicles.
In terms of market performance, Ford registered 516,614 new passenger cars in Europe last year, capturing a market share of 4.6%, as reported by the European Automobile Manufacturers’ Association (ACEA). However, the company has set ambitious targets to significantly increase its sales of electric vehicles in Europe, aiming to achieve over 600,000 EV sales by 2026.
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