Ford has announced that it plans to slash thousands of jobs across Europe in response to the switch to electric vehicles and rising competition.
In an announcement this afternoon, Ford said it would cut around 14 per cent of its European workforce, blaming the decision on significant losses in recent years.
In total, the “more cost-competitive structure” will involve further reducing its European workforce by 4,000 positions, primarily in Germany and the UK, by the end of 2027.
Ford currently has two plants in the UK – Dagenham and Halewood. While the brand has not released further details of where the job losses will come from, it is expected that jobs at both plants will be at risk.
German outlet Bild has reported that 2,900 of these job losses will be in Germany, inferring that around 1,000 could be in the UK, although this has not been confirmed.
Due to the dire situation for the global brand, it also announced that it would “further adjust” the production program for the new Explorer and Capri, citing “lower-than-expected” demand for EVs.
This will result in additional short-time working days at the Cologne, Germany, plant in the first quarter of 2025.
Dave Johnston, Ford’s European vice president for Transformation and Partnerships, said: “Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come.
“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”
Ford blamed the decision to cut jobs on a “misalignment” between emissions regulations and consumer demand for electric vehicles, adding that Europe had seen “significant disruption” in recent years.
John Lawler, vice chairman and chief financial officer of Ford Motor Company, had previously called on industry, policymakers, trade unions and social partners in Europe to work together to ensure the switch to EVs is successful.
In the call to action, he reiterated Ford’s commitment to Europe and to becoming a fully electric brand by 2035 but stressed the importance of working together.
He added: “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 electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets.”
Ford has maintained that it remains focused on the future of the brand in Europe, despite the massive job cuts, citing a recent $2billion (£1.58billion) investment for the Cologne factory to become a hub for EV manufacturing.
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