By Ilka Kopplin and Monica Houston-Waesch
Ford Werke GmbH, the German arm of Ford Motor Co. is cutting
production at its Cologne factory on the back of lower demand in
the second half of the year, the company said in a statement
Friday.
Ford said it would slow output of its compact Fiesta model in
Cologne, to 1,550 vehicles per day, from output of around 1,850
just a few months ago. In 2013 and early 2014, daily output was
around 1,650 cars.
The company also said it would apply for shorter working hours
during the months of October and November at its Cologne factory.
Ford said it would halt production on 11 days during the two
months, affecting around 4,000 employees out of a total of 17,300
in Cologne. Under the German program, designed to avoid job cuts,
the state compensates employees for unworked hours for a temporary
period.
Sales are generally weaker in the second half, which includes
the summer holiday period, a Ford Werke spokeswoman said. Sales
have been lower than expected during the second half of this year,
she added.
Earlier this month, the Association of European Automobile
Manufacturers said growth in European Union new car registrations
fell to 2.1% in August, from an annual rate of 5.6% in July, while
the German automotive industry association, or VDA, said German new
car registrations fell 0.5% on the year in August.
Write to Ilka Kopplin and Monica Houston-Waesch at
frankfurt.priority@dowjones.com