Ford Motor Co. It will consider eliminating another 4,000 positions in Europe, and further layoffs in an area where the transition to electric vehicles is losing traction across the industry.
The cuts – which make up about 14% of Ford Europe’s workforce – will mainly affect operations in Germany and the UK until the end of 2027, pending consultations with unions and governments. The automaker also announced Wednesday that it will cut production of the Explorer and Capri EVs at its complex in Cologne, Germany.
Ford promised as early as 2021 that it would largely revive its business in Europe, saying it would go almost entirely electric by the end of the decade. The change is not being planned, with the company announcing early last year that it would cut 3,800 jobs. Peers including Volkswagen AG and Stellantis NV have issued profit warnings in recent months, citing a broad slowdown in vehicle sales and government support for EV purchases.
“What we lack in Europe and Germany is an unequivocal, clear policy agenda to advance e-mobility,” John Lawler, Ford’s vice chairman and chief financial officer, said in a statement. He called for more public investment in charging infrastructure, meaningful EV incentives and more flexibility in CO2 emissions reduction targets, which the EU and UK are tightening next year.
According to the European Automobile Manufacturers Association, Ford’s share of Europe’s passenger car market fell to just 3.3 percent in the first nine months, from 4.1 percent in the same period last year. The automaker is more competitive in the commercial vehicle business, which will take longer to electrify.
Chief Executive Officer Jim Farley is pressing executives around the world to cut costs that have put Ford at a disadvantage against rivals. The company’s shares have fallen since July when it revealed that rising warranty costs for vehicle repairs were eating into profits.
Ford plans to cut about 2,900 positions in Germany, 800 in the UK 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 it is necessary given the situation we are facing.”
Godsell specifically cited a significant increase in competition from Chinese manufacturers. “Our feeling is that we’re not on a level playing field as it relates to this competition, knowing that it’s a subsidy,” he said.
The job cuts deal another blow to Germany’s struggling industrial base. Last week, the Council of Economists, which advises the government, scrapped its forecast for economic growth in 2024 to predict a second year of contraction, followed by just 0.4 percent expansion in 2025.
Ford will schedule shorter workdays in Cologne for the first quarter and is slated to shut down production at its factory in Saarlouis, Germany, next year. Volkswagen is weighing its first factory closure in its home country, and suppliers including Schaeffler AG and ZF Friedrichshafen are cutting thousands of positions.
