Ford to cut 4,000 jobs in Europe amid slow consumer EV demand

Ford is planning to axe 4,000 jobs across Europe as it warns of concerns over the “health” of its passenger vehicle business in the region.

Workers at its Dagenham engine factory or Halewood transmission plant are not expected to be affected but the carmaker is cutting back the production programme for the new Explorer and Capri electric SUV at its Cologne plant, which was transformed under a $2bn (£1.6bn) investment to build its next-generation EVs.

Ford said the cutbacks were essential to create a more cost-competitive structure for the long term.

“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” said Dave Johnston, Ford’s European vice president for Transformation and Partnerships. “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

The carmaker also warned that the global auto industry continues to be in a period of disruption, especially in Europe, where the industry faces “unprecedented competitive, regulatory and economic headwinds”.

Ford reiterated its call to action for the industry, governments, unions, and social partners in Europe to work together to create the conditions for a successful transition to e-mobility.

It’s warned of a “misalignment” between CO2 regulations and consumer demand for electrified vehicles.

Ford of Britain chief Lisa Brankin spoke out recently about the need for fresh electric vehicle incentives in the UK and a rethink on the ZEV mandate structure, warning that targets are at risk without new ways to drive customer demand.

However, the UK government said earlier this week that it’s open to working with vehicle makers on the ZEV mandate but won’t relax the sales targets, despite warnings from the auto sector.

Ford also recently issued an urgent call to action for industry, policymakers, trade unions, and social partners in Europe to work together for a successful industry transformation. In a letter to the German government, John Lawler, vice chairman and chief financial officer of Ford Motor Company, reiterated Ford’s commitment to Europe and to the 2035 emission targets but stressed the need for a joint commitment by all stakeholders to improving market conditions and ensuring the industry’s future success.

The Blue Oval said its vision for its future European business is defined by a thriving Ford Pro commercial vehicle business, a modern, highly efficient industrial system and a successful and profitable passenger vehicle business, competing in select segments with “iconic vehicles that are distinctively Ford” and include a range of ICE, hybrid and fully electric vehicles, “while meeting all European regulations”.