Job Cuts in Response to Industry Challenges
Ford has announced plans to cut nearly 4,000 jobs across Europe by the end of 2027, which represents approximately 14% of its workforce in the region. The company is responding to slowing demand for electric vehicles (EVs) and increasing competition from Chinese automakers. The job cuts will primarily affect employees in Germany and the United Kingdom.
Ongoing Industry Disruptions
Ford cited the ongoing disruptions in the global auto industry, particularly in Europe, where it faces strong competitive pressures, economic challenges, and evolving regulations. Dave Johnston, Ford’s European vice president for transformation and partnerships, stated that difficult decisions were necessary to ensure the company’s future competitiveness in Europe.
Pressure from China and Struggling EV Sales
Ford, like other automakers, is facing rising competition from Chinese electric vehicle manufacturers who are capturing a larger market share. This, combined with underperforming EV sales in Europe, has forced the company to adjust its strategy. Ford has already scaled back its EV production targets and reduced prices to cope with significant losses in its passenger vehicle segment. Last year, the company had already announced plans to cut 4,900 jobs across the continent.
Adjusting Production Plans
In addition to job cuts, Ford has decided to scale back production of its new Explorer and Capri EV models in Europe. This adjustment will result in shorter working days for staff, as the company responds to weaker-than-expected demand and ongoing economic challenges in the region.
Calls for Government Support
Ford’s chief financial officer, John Lawler, has written to the German government urging stronger policy support to help the automotive sector transition to electric vehicles. He called for public investments in EV infrastructure, consumer incentives to support the shift to electric vehicles, and greater flexibility for manufacturers to meet emissions regulations.
Challenges for Other Automakers
Ford’s announcement follows similar moves by other automakers, including Volkswagen, which recently announced pay cuts and factory closures as it grapples with a weak European car market and declining market share in China. Volkswagen workers have also agreed to forgo pay raises to help protect jobs and keep factories open.
