Ford Motor Co. will look to cut another 4,000 jobs in Europe, further cutting costs within a region where the shift to electric vehicles is losing momentum industry-wide.
The cuts – amounting to about 14% of Ford Europe’s workforce – will primarily affect operations in Germany and the UK by the end of 2027, pending consultations with unions and governments. The automaker also announced Wednesday that it will reduce production of Explorer and Capri EVs at its complex in Cologne, Germany.
Ford pledged in early 2021 to radically overhaul its business in Europe, saying it would leave Almost entirely electric By the end of the decade. This shift was not planned, as the company announced early last year that it would be downsizing 3800 job opportunities. Peer companies, including Volkswagen AG and Stellantis NV, have issued profit warnings in recent months, citing a broad slowdown in car sales and governments withdrawing support for purchasing electric vehicles.
“What we lack in Europe and Germany is a clear and unambiguous policy agenda to advance electric mobility,” John Lawler, Ford’s vice chairman and chief financial officer, said at a press conference. statement. He called for more public investment in charging infrastructure, meaningful incentives for electric vehicles, and greater flexibility in carbon dioxide emissions reduction targets, which the EU and UK will make stricter next year.
Ford’s share of the European passenger car market shrank to just 3.3% in the first nine months, from 4.1% in the same period last year, according to the European Automobile Manufacturers Association. The automaker is more competitive in commercial vehicles, which will take longer to electrify.
CEO Jim Farley is pressuring executives around the world to cut costs that have put Ford at a competitive disadvantage against rivals. The company’s shares have fallen since July when it revealed that rising warranty costs for vehicle repairs further eroded profits.
Ford plans to cut about 2,900 jobs in Germany, 800 in the United Kingdom, and 300 in the rest of the region.
“This is clearly a difficult day for Ford in Europe,” said Peter Godsell, vice president of human resources. “But we believe this is necessary given the situation we face.”
Godsell specifically pointed to the significant increase in competition from Chinese manufacturers. “Our feeling is that we are not on equal footing in terms of this competition, knowing that it is supported,” he said.
The job cuts represent another setback for Germany’s faltering industrial base. Last week, the Council of Economists that advises the government scrapped its forecast for economic growth in 2024 to predict a second year of contraction, followed by an expansion of just 0.4% in 2025.
Ford will schedule short-duration workdays in Cologne during the first quarter and is scheduled to do so Stop production At its factory in Saarlouis, Germany, next year. Volkswagen is considering closing its factories for the first time ever in its home country, and suppliers including Schaeffler AG and ZF Friedrichshafen are cutting thousands of jobs.