Ford Motor Company is planning to further reduce its European workforce by 4,000 positions, in part due to ‘weak demand’ for EVs.
The planned job cuts will primarily impact operations in Germany but also the UK, with minimal reductions in other European markets.
The motor giant says it is restructuring plans to create a more ‘cost-competitive structure’ and ensure the long-term sustainability and growth of its business in Europe.
“Of particular concern is the health of Ford’s passenger vehicle business in Europe, where the company has incurred significant losses in recent years, and where the industry shift to electrified vehicles and new competition has been highly disruptive,” Ford says.
The company adds that due to lower-than-expected demand for electric cars, it is adjusting the production programme for its new Explorer and Capri.
Ford reports that the global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility.
“The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles.”
Ford recently issued an urgent call to action for industry, policymakers, trade unions and social partners in Europe to work together for a successful industry transformation. In a letter to the German government, John Lawler, vice chairman and chief financial officer of Ford Motor Company, reiterated Ford’s commitment to Europe and to the 2035 emission targets but stressed the need for a joint commitment by all stakeholders to improving market conditions and ensuring the industry’s future success.
“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to EVs, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler said.
