Ford to Cut 4,000 Jobs in Europe Amid EV Challenges, Union Vows Resistance
November 20, 2024In a related development, Ford has postponed the end of Focus production from May 2025 to November 2025, indicating ongoing adjustments in its manufacturing strategy.
The automotive industry in Germany is facing additional pressures from political instability and rising trade tensions with China, complicating the market landscape.
Industry experts emphasize the need for stable environmental policies, such as continued consumer incentives and improved charging infrastructure, to boost electric vehicle sales.
Despite these challenges, Ford aims to remain competitive in Europe by concentrating on software-defined vehicles and its commercial Ford Pro business.
Ford Motor Co. is set to cut 4,000 jobs in Europe and the U.K. by the end of 2027, citing economic challenges, increased competition, and disappointing electric vehicle (EV) sales.
Notably, the layoffs will not affect Ford's UK facilities in Dagenham and Halewood, which are focused on diesel engines and electric vehicle motors.
The labor union at Ford has expressed strong opposition to the job cuts, with union leader Benjamin Gruschka calling it a 'black day for Ford' and vowing to resist the layoffs.
Manufacturers, including Ford, are calling for more time and government support to meet the rapid implementation of electric vehicle mandates, which they argue is currently unsustainable.
Despite a significant investment of $50 billion in 2023 to develop new EVs, Ford has struggled to meet production expectations, leading to a restructuring of its management team.
Looking ahead, Ford is focusing on developing smaller, more affordable electric vehicles, with plans for a new electric truck expected to launch in 2027.
Dagenham and Halewood facilities are protected from job cuts, as they are crucial for producing diesel engines and developing electric vehicle components.
As the automotive sector navigates these turbulent times, discussions around labor and employment are expected to intensify, particularly in light of the upcoming Bundestag elections.
Summary based on 44 sources
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Sources
Forbes • Nov 20, 2024
Stalled European Electric Vehicle Sales Trigger 4,000 Job Cuts At FordThe Guardian • Nov 20, 2024
Ford cuts 4,000 jobs in Europe, including 800 in UK, after slowdown in EV salesBBC News • Nov 20, 2024
Ford to cut 800 UK jobs as electric car sales flagThe Verge • Nov 20, 2024
Ford retracts in Europe with layoffs and lower EV production