Ford to Axe 4,000 Jobs in Europe Amid Faltering EV Sales

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Key Takeaways

  • Ford says it will cut 4,000 positions, primarily in Germany and the UK.
  • Figures could be up to 800 jobs in the UK and 2,900 in Germany.
  • The company claims measures are in place to create a more ‘cost-competitive structure’.

Ford has announced restructuring plans that will see it reduce its European workforce by 4,000 positions by the end of 2027.

As part of a series of measures to ensure the company can maintain the “long-term sustainability and growth of its business in Europe” the cuts will predominantly effect the UK, where Autocar suggests up to 800 roles could be at risk, and the Saarlouis plant in Germany where 2,700 jobs will be axed from the factory.

However, Ford has not stated exactly what areas the job cuts will affect in the UK, with Autocar suggesting that admin, commercial and development roles are most at risk, rather than workers at its Dagenham engine factory or Halewood transmission plant.

The news follows an announcement from Ford last week that it would also slow production of the all-electric Explorer and Capri models at its recently refurbished plant in Cologne, citing a cooling off in demand for the company’s EVs.

In an official statement, Ford confirmed that the Cologne plant would experience short-time working days in the first quarter of 2025, claiming that a weak economic situation and lower-than-expected demand for electric cars had forced the company’s hand.

The axing of 4,000 jobs represents a reduction of around 14% of its 28,000-strong workforce across Europe, but Dave Johnston, Ford’s European vice president for transformation and partnerships, claims the move is “critical” to ensure Ford’s future competitiveness in Europe.

The company is calling for industry representatives, policymakers, trade unions, and social partners to come together in order to promote a “successful industry transformation”.

John Lawler, vice chairman and chief financial officer of Ford Motor Company stated in an open letter to the German government that Europe lacked an “unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets.”

There have been similar concerns raised by a number of automotive manufacturers in the UK, where the zero-emission vehicle (ZEV) mandate, which demands carmakers sell an increasing proportion of electric vehicles each year, is proving difficult to meet and is creating an “unstable environment”, according to Peter Godsell, vice-president of Ford in Europe.

A number of automakers are calling for a relaxing of the ZEV mandate rules, although they are facing fierce opposition from EV charging and infrastructure companies that say turning back on the decision could endanger the millions of pounds already invested.