Ford, facing economic headwinds and weak EV sales, to cut 4,000 jobs in Europe
Published On : 2024-11-21T04:30:51+0530 [ IST ] |
Author : Mayur_Tembhare
Reading Time : 2 mins
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Ford says it will reduce its workforce by 4,000 in Europe and the U.K. by the end of 2027 citing headwinds from the economy and pressure from increased competition and weaker than expected sales of electric cars.
Ford said most of the job cuts would come in Germany and would be carried out in consultation with employee representatives.
Of the total 2,900 jobs would be lost in Germany 800 in Britain and 300 in other European Union countries. Ford has 28,000 employees in Europe and 174,000 worldwide.
The global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility the company said in a statement.
In Europe automakers must sell enough electric vehicles to meet new lower limits for fleet average carbon dioxide emissions in 2025 and face a longer term EU goal of reducing emissions to zero by 2035 which would mean the elimination of most vehicles with internal combustion engines.
However EV sales have lagged as consumers weary of inflation have held back on spending and after major car market Germany dropped government purchase incentives for EVs. Electric vehicles sales fell by 5.8% in the first nine months of the year in an overall shrinking market for
The company said it would also reduce working hours for workers at its Cologne plant where it makes the electric vehicles Capri and Explorer.
Ford sales fell 15.3% in the first nine months of the year compared to the same period last year. The company's market share shrank to 3% from 3.5%. The Dearborn, Michigan-based automaker saw company-wide net profit fall by 26% to $892 million in the third quarter as it took $1 billion in accounting charges
Ford is an established brand in Europe and will mark its 100th anniversary of doing business in Germany next year. Its main plant in Cologne started production in 1931. The groundbreaking was attended by Henry Ford and then-Mayor Konrad Adenauer later Germany's chance
Ford is not alone in suffering headwinds. Volkswagen has said it is considering closing as many as three of its German plants, according to its chief employee representative. European Automobile Manufacturers' Association has called for a speedier review of lower C02 limits slated for 2026
Ford said its vice chairman and CFO John Lawler had written a letter to the German government reiterating Ford's commitment to climate goals but urging action to improve market conditions and ensuring the industry's future success.
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 to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers and greater flexibility in meeting CO2 compliance targets
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Source : Reporters From Sunrise Chronicles
Tags : electricmeeting co2 compliance targets ," lawler said , fordlonger term 2035 eu goal , Capri , In Europe , Europe , yearjob cuts would come , Association , Ford , European Automobile Manufacturers , Ford Motor Co ,
Summary :
Ford says it will reduce its workforce by 4,000 in Europe and the U.K. by the end of 2027 citing headwinds from the economy and pressure from increased competition and weaker than expected sales of
