Ford Cuts 4,000 Jobs, Blames Weak EV Demand, China Competition

Ford said it would cut around 14 per cent of its European workforce on Wednesday, blaming losses in recent years due to weak electric vehicle demand, poor government support for EV shift and competition from subsidised Chinese rivals.

Ford said 4,000 job cuts, which represent around 2.3 per cent of its total workforce of 174,000, would be primarily in Germany and Britain. .S automaker is latest - after Nissan, Stellantis and GM - to cut costs as sector faces challenges that include EVs that are too expensive for consumers to buy.

Shares in Ford were down 1.8 per cent following news of measures, which will be a big blow in particular for Germany, where Europe's biggest carmaker Volkswagen is threatening to close factories, cut wages and axe thousands of jobs to allow it to compete better.

Ford has been battling to bring down costs in its global business, also lagging competitors like GM significantly in U.S. market where it has struggled to deal with quality and warranty problems, supplier issues and waste in automaker's 121-year legacy business.

Germany's deepening political crisis, too, has ded uncertainty for companies grappling with growing tre tensions with China and implications of Donald Trump's U.S. election victory.

Ford said layoffs should take place by end of 2027, pending union discussions. It said 2,900 cuts would be in Germany and 800 in Britain and it would reduce production of its Explorer and Capri EV models at its Cologne plant.

Ford Europe vice president Peter Godsell told reporters that Ford was experiencing "weaker demand for electric vehicles than we h previously forecast and we continue to have challenges around our operating costs".

This meant Ford needed "decisive action to restructure our business", he said, ding that while company hoped job cuts would dress its problems, he could not rule out furr measures if market conditions worsen.

'Tough confrontation'

Through September this year, Ford's sales in Europe fell 17.9 per cent, far outstripping an industry-wide decline of 6.1 per cent.

German unions said y would not accept plans as re were alternatives, and asked Ford's European management to enter talks over future of business.

"If re is no willingness to do so, we are also prepared for a tough confrontation," said Knut Giesler of IG Metall, who runs German union's branch in state of North Rhine-Westphalia, home to Ford's major Cologne plant.

Ford also called on German government in particular to provide more incentives and better charging infrastructure to help consumers transition to EVs.

Berlin ended EV subsidies in December last year. EV sales in Germany in first nine months of this year were down 28.6 per cent.

"What we lack in Europe and Germany is an unmistakable, clear policy agenda to vance e-mobility, such as public investments in charging infrastructure, meaningful incentives ... and greater flexibility in meeting CO2 compliance targets," Ford's chief financial officer John Lawler wrote in a letter to German government.

Ford has been undergoing a painful restructuring in Europe, announcing 3,800 job cuts in February 2023. It is closing its Saarlouis plant in Germany next year, with furr job cuts.

European Union has slapped tariffs on Chinese-me EVs, saying y benefit from unfair government subsidies.

Marcus Wassenberg, managing director at Ford's German division, said move reflected ongoing changes, singling out Germany for its high labour and energy costs.

All German job cuts would be at Ford's main site in Cologne and account for 24 per cent of factory's workforce.