Ford had been calling on Ed Miliband and Labour to delay the phase-out of internal combustion engines, while Stellantis, the parent company of Vauxhall, has also warned that it may be forced to shut UK factories unless the deadline is relaxed.
Ford has announced plans to cut 800 jobs in Britain over the next three years as part of a broader cost-cutting measure triggered by declining demand for electric vehicles.
The cuts are part of a wider plan to reduce 4,000 roles across Europe by the end of 2027, with the UK and Germany bearing the brunt of the layoffs.
The job losses, which represent approximately 2.3% of Ford’s global workforce of 174,000, will primarily affect administrative and product development roles. Key UK manufacturing sites, including Dagenham, Halewood, and the logistics base in Southampton, will remain unaffected.
Ford has cited “significant competitive and economic headwinds” as key factors behind the decision, adding that a misalignment between government CO2 regulations and consumer demand for electric vehicles has further compounded the issue.
Speaking to the BBC, Lisa Brankin, managing director of Ford of Britain and Ireland, said:
“Making this announcement isn’t something that anybody wants to do, and I appreciate it will have a very significant impact on our employees. Our aim is to try to deliver this through voluntary redundancy.”
Ford had pledged to transition to nearly all-electric production in Europe by the end of the decade. However, the company has faced significant losses in recent years as electric vehicle (EV) sales underperformed expectations.
Ford’s European sales fell 17.9% in the first nine months of this year, compared to an industry-wide decline of 6.1%, underscoring the challenges faced by the automaker.
The company joins major rivals, including Nissan, Volkswagen, Stellantis, and General Motors, in announcing significant cost-cutting measures in response to weak EV demand and mounting costs associated with the transition to electric mobility.
Ford’s move is part of a growing trend among automakers grappling with the high costs of transitioning to electric vehicles. The company’s struggles reflect broader concerns within the industry, which has been hit by declining demand, rising production costs, and insufficient charging infrastructure across Europe.
It appears the UK car industry as a whole is increasingly uneasy about the future of EVs. Automakers are urging Labour to reconsider its ambitious 2030 ban on new petrol and diesel car sales, which many view as unrealistic given current market conditions. Ford has been calling on Ed Miliband and Labour to delay the phase-out of internal combustion engines, while Stellantis, the parent company of Vauxhall, has warned that it may be forced to shut UK factories unless the deadline is relaxed.
The fundamental issue lies in the affordability and performance of EVs. Manufacturers need to make significant advancements in battery technology to lower costs and improve driving range—two key factors influencing consumer adoption.
As Ford prepares to cut jobs, questions remain about whether the government’s current policies are enough to support manufacturers and consumers through the EV transition—or if more needs to be done to avoid further economic and job losses.
Last year, Conservative Prime Minister Rishi Sunak delayed the UK’s ban on new petrol and diesel car sales from 2030 to 2035, arguing that he would not impose “unacceptable costs” on British families to achieve climate targets.
Photo Licence: https://creativecommons.org/licenses/by/2.0/