Summary
- European job cuts occur as Ford faces challenges in the transition to electric vehicles (EVs).
- Job cuts are mainly in Germany and the UK, impacting 2.3% of Ford’s global workforce.
- Ford calls on the German government for enhanced EV support and incentives.
Ford Announces European Job Cuts Amid EV Challenges
- 14% Reduction in European Workforce: Ford plans to cut around 14% of its European workforce, citing financial losses and weak demand for electric vehicles (EVs).
- Reasons for Job Cuts: The company blames:
- Lack of government support for the shift to EVs.
- Increased competition from Chinese EVs, which are subsidized.
- High EV prices that deter consumer purchases.
Job Cuts and Production Changes
- Impact on Employment:
- 2,900 job cuts will be in Germany.
- 800 job cuts will be in the UK.
- Layoffs are set to occur by the end of 2027, pending union negotiations.
- Reduction in EV Production: Ford will reduce production of its Explorer and Capri EV models at its Cologne, Germany plant.
Ford’s Restructuring Plans
- Ongoing Restructuring: Ford Europe Vice President Peter Godsell cited weaker-than-expected EV demand and rising operating costs as key challenges, prompting the company to restructure its business.
- Further Measures Possible: Godsell acknowledged that additional actions may be needed if market conditions worsen. Ford’s European sales have already dropped 17.9% through September, outpacing the broader industry decline of 6.1%.
Ford Calls for Government Support
- Request for EV Incentives and Infrastructure: Ford urges the German government to provide:
- More EV incentives.
- Better charging infrastructure.
- Clear policies for advancing e-mobility.
- Impact of Government Policies:
- EV sales in Germany dropped 28.6% this year after the end of EV subsidies in December 2023.
- Ford’s CFO John Lawler called for greater flexibility in meeting CO2 compliance targets and public investments in charging infrastructure.
Ford’s European Restructuring and Global Trade Tensions
- Restructuring in Europe: Ford already announced 3,800 job cuts in February 2023 and will close its Saarlouis plant in 2025, leading to further job reductions.
- EU Tariffs on Chinese EVs: The European Union has imposed tariffs on Chinese-made EVs, citing unfair subsidies from the Chinese government.
- Challenges in Germany:
- High labor and energy costs in Germany are contributing to the challenges.
- Job cuts in Germany will occur primarily at Ford’s Cologne site, affecting around a quarter of the workforce there.
