【Epoch Times, November 20, 2024】Ford Motor Company announced on Wednesday that it will cut an additional 4,000 jobs in Europe. The soft demand for electric vehicles, lack of government support for car manufacturers shifting to electric vehicle production, and intensifying competition have led the company to incur losses in recent years.
This round of layoffs accounts for approximately 14% of Ford’s European workforce (28,000 people) and 2.3% of its global workforce (174,000). The job cuts will mainly affect Germany (2,900 positions) and the UK (800 positions), but negotiations with unions and governments are still needed. Ford stated that the workforce reduction in Europe will be completed by the end of 2027.
Ford also announced on Wednesday that it will reduce production of Ford Explorer and Capri electric vehicle models at its Cologne production base in Germany.
Following Nissan, Stellantis, and General Motors, Ford is the latest automaker to cut costs. The industry is facing increasingly fierce competition from Chinese competitors in the European market, declining demand in China, and challenges in transitioning to electric vehicle production. Currently, electric vehicles are still too expensive for most consumers, affecting their demand.
These measures are particularly severe for Germany. Germany is home to the largest economy in Europe and the largest automotive manufacturer. Volkswagen has already announced plans to close some of its plants in Germany, reduce wages, and cut thousands of jobs to enhance its competitiveness.
In a statement, Ford mentioned that European car manufacturers “are facing significant competition and economic hurdles, while also dealing with the mismatch between carbon emission regulations and consumer demand for electric vehicles.”
As of September this year, Ford’s sales in Europe dropped by 17.9%, far exceeding the industry-wide decrease of 6.1%.
Ford also called on the German government to provide more incentives and better charging infrastructure to help consumers transition to electric vehicles.
Germany ended electric vehicle subsidies in December last year. In the first nine months of this year, electric vehicle sales in Germany dropped by 28.6%.
John Lawler, Ford’s Chief Financial Officer, said, “What we lack in Europe and Germany is a clear policy agenda to drive electric vehicle development, such as public investment in charging infrastructure, meaningful incentives… and greater flexibility in achieving carbon compliance goals.”
Ford has undergone painful restructuring in Europe, having announced 3,800 job cuts in February 2023. Ford also plans to close its Saarlouis plant in Germany next year.
The EU has imposed tariffs on electric vehicles manufactured in China for the European market, believing that they benefit from unfair subsidies from the Chinese government.
*(This article referenced reporting from Reuters)*