Ford announced on Wednesday plans to reduce its European workforce by approximately 14%, citing substantial losses in recent years that the carmaker attributed to weak demand for electric vehicles, insufficient government support for the EV transition, and intensifying competition in the sector.

The U.S. company is the latest automaker after Nissan, Stellantis and GM to cut costs as the industry struggles with growing competition from Chinese rivals in Europe, waning demand in China, and the challenges of shifting to EVs that remain too expensive for most consumers to buy.

Ford said the 4,000 job cuts would be primarily in Germany and the United Kingdom. Globally, layoffs represent around 2.3% of Ford’s workforce of 174,000.

The measures will be a big blow for Germany in particular, Europe’s largest economy and biggest carmaker, where Volkswagen is threatening to close factories, slash wages and cut thousands of jobs to improve its ability to compete.

The country’s deepening political crisis is also adding uncertainty to companies grappling with growing trade tensions with China and the U.S. election victory of Donald Trump.

Ford said the European layoffs should take place by the end of 2027.

Europe’s automakers “face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” the company said in a statement.

Through September this year, Ford’s sales in Europe fell 17.9%, far outstripping an industrywide decline of 6.1%.

Ford also called on the German government in particular to provide more incentives and better charging infrastructure to help consumers transition to EVs.

Berlin ended EV subsidies in December last year. EV sales in Germany in the first nine months of this year were down 28.6%.

“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,” Ford’s chief financial officer John Lawler wrote in a letter to the German government.

Ford has been undergoing a painful restructuring in Europe, announcing 3,800 job cuts in February 2023. Ford is also closing its Saarlouis plant in Germany next year, with further job cuts.

The European Union has slapped tariffs on Chinese-made EVs, saying they benefit from unfair subsidies from China’s government.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.