Ford workers across both plants in Cologne, Germany, plan to begin strike starting this Wednesday, the council head said on Monday, as the company is planning cuts on European operations.
The IG Metal Union stated that 93.5% of the workers in Cologne voted in favor of the strike — above the 75% needed to take action — as labor representatives consistently urged management throughout the negotiations to explore alternative approaches to restructuring the business.
The automaker cut production of both the Explorer EV and Capri EV at its Cologne plant at the end of last year. Ford had started production of the Capri model a few months earlier, in June.
Late last year, the US announced a cut of 14% on its workforce that would affect factories in the Germany and the UK, citing losses caused by weak demand and insufficient government support regarding electric vehicles.
Ford declined to provide additional details to Reuters, stating only that negotiations with trade unions are ongoing. However, these negotiations will be paused as the strike begins, with the union demanding “an offer that is acceptable for conclusion.”
Kerstin D. Klein, chief representative of IG Metal Cologne-Leverkusen, said that “Ford must now act” or the workers will “push ahead” with the action.
“It should now be clear to Ford that real damage could also be done to the commercial vehicle business in Europe,” the representative stated, adding that it could also cause “damage to Ford‘s image.”
However, local media outlet Kölner Stadt-Anzeiger reported in November that production was being halted amid “rapidly deteriorating market conditions for electric vehicles.”
Q1 Results
Last week, Ford reported a 72% year-over-year drop in adjusted net income to $552 million for the first quarter. Adjusted EBIT came in at $1.0 billion, while the company saw a $2.22 billion cash outflow, the largest since the second quarter of 2021.
Its EV division, Model e, posted a first-quarter EBIT loss of $849 million. The company said the unit “remains focused on improving gross margins and exercising a disciplined approach to investments in battery facilities and next-generation products.”
Citing uncertainty and “the potential for future or increased tariffs in the U.S.,” Ford said it was “suspending guidance.”
CEO Jim Farley stated at the earnings call that the company estimates “gross impact of tariffs for full year total company EBIT (Earnings Before Interest and Taxes) of $2.5 billion and a net impact of $1.5 billion.”
