The company explains this by the pressure of growing competition and weaker than expected sales of electric vehicles
Automaker Ford plans to lay off 4 thousand employees in Europe. This was announced in a recent statement by the company.
The company explains this decision by the pressure of growing competition and weaker than expected sales of electric vehicles, as well as economic uncertainty.
The layoffs, which account for about 14% of Ford Europe’s workforce, will primarily affect operations in Germany and the UK and will take place by the end of 2027, following consultations with trade unions and governments.
The automaker also announced adjustments to the production program for the Explorer and Capri, which will lead to a reduction in working days at the Cologne (Germany) plant in the first quarter of 2025.
Ford notes that the global automotive industry continues to experience a period of major disruption as it transitions to electrified mobility.
“The transformation is particularly intense in Europe, where automakers are facing significant competitive and economic challenges, as well as struggling with the divergence between CO2 regulations and consumer demand for electrified vehicles,” the statement said.
Recently, the company appealed to industry, politicians, trade unions and social partners in Europe to take joint action.
In a letter to the German government, John Lawler, vice president and chief financial officer of Ford Motor Company, reaffirmed Ford’s commitment to Europe and its 2035 emissions targets. However, he noted that companies in Europe and Germany lack clear policies to promote e-mobility. These include public investment in charging infrastructure, meaningful incentives for consumers to switch, increased competitiveness of manufacturers, and greater flexibility in meeting CO2 targets.
As GMK Center reported earlier, European car producer is experiencing difficulties due to high production costs, fierce competition, and stagnant demand for electric vehicles in the main markets for these products. In particular, sentiment in the German automotive industry continues to deteriorate, as evidenced by an October survey by the Institute for Economic Research (Ifo). According to the survey, 44.3% of the companies surveyed suffer from a lack of orders, the highest percentage since July 2020.
