Ford to Slash 4,000 Jobs in Europe

US automotive giant Ford has announced plans to cut 4,000 jobs across Europe by 2027, citing mounting financial pressures and the shift towards electric vehicles (EVs). The cuts represent 14% of Ford’s European workforce, with the majority affecting Germany.

Major Job Cuts in Germany and beyond

Germany: Approximately 2,900 layoffs by the end of 2027.

United Kingdom: Around 800 jobs set to go.

Other EU Nations: An additional 300 positions to be eliminated.

Ford’s Cologne plant, employing 11,500 workers, will see significant reductions, including shortened working hours and scaled-down production of the Capri and Explorer EV models.

Ford’s Statement on the Cuts

The company has pointed to “significant competitive and economic headwinds” facing Europe’s automotive sector, compounded by stricter EU CO2 regulations and weaker consumer demand for EVs.

Dave Johnston, Ford’s European Vice President for Transformation and Partnerships, stressed: “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

The planned redundancies are set to be implemented in consultation with labour representatives, who have expressed concern over the scale of the job losses.

Electric Vehicles Face Uphill Battle in Europe

The EV market in Europe is undergoing significant disruption:

EU CO2 Regulations: Stricter rules coming into effect next year could lead to billions in fines for automakers failing to comply.

Chinese Competition: Chinese manufacturers are flooding the market with cheaper electric cars, challenging Western automakers.

Declining EV Sales: In Germany, EV sales fell by 28.6% in the first nine months of this year after government subsidies were slashed in December 2023.

Ford acknowledged that the global automotive sector is facing “a period of significant disruption” as the industry transitions to electrified mobility.

Ford Urges Action from Berlin

Ford has called on the German government to step up support for the EV market. In a letter to Berlin, Chief Financial Officer John Lawler urged policymakers to create a clear strategy to boost electric mobility.

The company proposed:

Increased public investment in EV charging infrastructure.

Stronger incentives for EV buyers.

Greater flexibility in meeting CO2 compliance targets.

Marcus Wassenberg, Ford’s Managing Director for Germany, highlighted the high labour and energy costs in the country, which make competing in the EV sector more challenging.

Wider Implications for the Car Industry

Ford’s announcement follows similar moves by other carmakers, including Volkswagen, which is also planning to cut thousands of jobs in its German plants. The news signals a broader trend of restructuring in Europe’s automotive sector as manufacturers face rising costs and evolving market demands.

For Ford, these job cuts are a painful but necessary step to secure its foothold in the European market amidst the growing challenges of electrification and regulatory pressures.