Ford Motor Company revealed on Wednesday its plan to reduce its European workforce by approximately 4,000 jobs, representing 14% of its total workforce in the region. This significant decision stems from substantial losses over the past few years, driven by weak demand for electric vehicles (EVs), insufficient government support for the EV transition, and increasing competition.
The job cuts will primarily impact Germany and the United Kingdom, with Ford’s global workforce of 174,000 set to see a reduction of about 2.3%. This move follows similar cost-cutting actions by other automakers, including Nissan, Stellantis, and General Motors, as they grapple with fierce competition from Chinese brands in Europe and a decline in demand from China.
In its statement, Ford acknowledged the challenging landscape: “Europe’s automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles.” The automaker highlighted the urgent need for improved policy support in Germany, particularly after the government ended EV subsidies in December 2023. Consequently, EV sales in Germany plummeted by 28.6% in the first nine months of this year.
Ford’s Chief Financial Officer, John Lawler, emphasized the necessity for a clear policy agenda to promote e-mobility: “What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives, and greater flexibility in meeting CO2 compliance targets.”
This restructuring effort follows a painful period for Ford, which announced 3,800 job cuts in February 2023 and plans to close its Saarlouis plant in Germany next year. The automaker’s sales in Europe fell by 17.9% through September, far exceeding the overall industry decline of 6.1%.
As Ford navigates these turbulent waters, the broader European automotive sector faces increasing uncertainty amid trade tensions and a potential political crisis, exacerbated by factors including the U.S. election results.