Ford Facing Economic Headwinds And Weak EV Sales, To Cut 4,000 Jobs In Europe

Ford Cuts Jobs: Ford Motor Company says it will reduce its workforce by 4,000 in Europe and UK by end of 2027, citing hewinds from economy and pressure from increased competition and weaker than expected sales of electric cars.

Ford said Wednesday most of job cuts would come in Germany and would be carried out in consultation with employee representatives.

Of total, 2,900 jobs would be lost in Germany, 800 in Britain and 300 in or European Union countries. Ford has 28,000 employees in Europe, and 174,000 worldwide.

“ global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility,” company said in a statement. “ transformation is particularly intense in Europe where automakers face significant competitive and economic hewinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” statement said.

In Europe, automakers must sell enough electric vehicles to meet new, lower limits for fleet average carbon dioxide emissions in 2025, and face a longer term 2035 EU goal of reducing emissions to zero, which would mean elimination of most vehicles with internal combustion engines.

EV sales however have lagged as consumers weary of inflation have held back on spending and after major car market Germany dropped government purchase incentives for EVs. Electric vehicles sales fell by 5.8 per cent in first nine months of year in an overall shrinking market for cars. Carmakers are also facing increasing competition from Chinese-me electric vehicles.

company said that it would also reduce working time for workers at its Cologne, Germany, plant where it makes Capri and Explorer electric vehicles.

Ford sales fell 15.3 per cent in first nine months of year compared to same period last year, according to European Automobile Manufacturers’ Association. company’s market share shrank to 3 per cent from 3.5 per cent Dearborn, Michigan, hequartered automaker saw companywide net profit fall by 26 per cent to $892 million in third quarter as it took $1 billion in accounting charges to write down assets for a canceled three-row electric SUV. company cited higher warranty and or costs.

Ford is an established brand in Europe and will mark its 100th anniversary of doing business in Germany next year. Its main plant in Cologne started production in 1931; groundbreaking was attended by Henry Ford and n-Mayor Konr enauer, later Germany’s chancellor.

Ford is not alone in suffering from hewinds. Volkswagen has said it is contemplating closing as many as three of its German plants, according to its chief employee representative. European Automobile Manufacturers’ Association has called for a speedier review of lower C02 limits slated for 2026.

Ford said company vice chairman and CFO John Lawler h written a letter to German government reiterating Ford’s commitment to climate goals but urging action to improve market conditions and ensuring industry’s future success.

“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 to help consumers make shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler said.