Ford Motor Co. announced plans to reduce its workforce in Europe by 4,000 jobs by the end of 2027, citing ongoing challenges in the automotive industry.Â
The company stated that the cuts, primarily in Germany, are a response to economic headwinds, increased competition, and weaker-than-expected sales of electric vehicles (EVs).
According to Reuters, the job reductions will mainly affect Germany, where 2,900 positions will be eliminated.Â
An additional 800 jobs will be lost in the U.K., with the remaining 300 cuts spread across other European Union countries. Ford employs 28,000 workers in Europe, part of a global workforce of 174,000.
The company emphasized that these changes are necessary as the automotive sector undergoes significant disruption, particularly in Europe.Â
The shift to electrified mobility has placed pressure on automakers, especially as they face challenges from stringent CO2 regulations and a misalignment between consumer demand for electric vehicles and government emission targets.
In Europe, new rules set to take effect in 2025 require automakers to sell enough electric cars to meet strict CO2 emissions limits, with an even more ambitious goal for 2035, which aims for zero emissions from new cars.Â
Despite this, EV sales have been slow, exacerbated by inflation concerns and the recent removal of government incentives for electric vehicles in key markets like Germany.Â
In the first nine months of the year, sales of electric vehicles fell by 5.8%, contributing to a general downturn in the car market.
Ford’s sales in Europe dropped by 15.3% compared to the same period last year, with its market share falling from 3.5% to 3%. The company’s net profit also declined by 26% in the third quarter, partly due to a $1 billion accounting charge for the cancellation of a planned electric SUV model.
As part of its restructuring, Ford will also reduce working hours at its Cologne plant in Germany, which manufactures the Capri and Explorer electric vehicles.Â
The company stated that it is committed to the long-term success of electrified mobility but is urging the German government to take action to improve market conditions, including greater investments in EV charging infrastructure and more flexible policies to help manufacturers meet CO2 compliance targets.
Ford’s announcement comes as other automakers, like Volkswagen, are also grappling with similar challenges, with reports suggesting possible plant closures in Germany. The European Automobile Manufacturers’ Association has called for a review of the emissions regulations to help ease the burden on the industry.
Ford, which is celebrating its 100th anniversary in Germany next year, continues to be a significant player in the European automotive market, despite the challenges posed by the transition to electric vehicles.
