Ford said it would cut 4,000 jobs in its European business, while reducing production estimates for its upcoming Explorer and Capri electric vehicles.
The planned cutswhich represent 14 percent of the automaker's European operations, will primarily affect its workers in Germany and the United Kingdom, with “minimal reductions” coming from other European markets.
It also comes at a difficult time for Ford, which has been dealing with disruptions both at home and abroad. The company recently halted production of its F-150 Lightning pickup truck until after the new year in response to lower-than-expected demand.
The Explorer and Capri electric vehicles are assembled at Ford's factory in Cologne, Germany, which is at the center of the automaker's push to go all-electric on the continent by 2030. But that plan has hit major roadblocks, leading which has forced the automaker to reduce its costs. Explore your options. The company reduced its ranks in Europe by more than 35 percent over the past five years, including 3,800 jobs eliminated last year.
Increasing competition from Chinese automakers has also driven Ford's reductions. European regulators recently high tariffs on Chinese imports to stem the flow of cheap electric vehicles to the continent. The company's CEO, Jim Farley, talked about driving a Xiaomi SU7 for several weeks to learn how the country has cracked the code on cheap electric vehicles.
“What we are missing in Europe and Germany is a clear and unambiguous policy agenda to promote electric mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the switch to electrified vehicles, improving cost competitiveness for manufacturers and greater flexibility. in meeting CO2 compliance goals,” Ford Chief Financial Officer John Lawler said in a statement.
The electric vehicle market is struggling in Europe, where sales of new electric vehicles in Germany fell almost 37 percent in July 2024 of the same month a year ago. The German government recently ended its electric vehicle subsidy program, which had provided up to around 6,000 euros for the purchase of new battery electric and plug-in hybrid cars.
Meanwhile, Ford's share of the European passenger car market fell to just 3.3 percent in the first nine months, from 4.1 percent in the same period last year. according Bloombergciting the European Automobile Manufacturers Association.
