Ford Motor Co. announced this week that it will cut 14% of its European workforce, pointing to low electric vehicle sales and increased competition from Chinese automakers.
The layoffs constitute a 2.3% cut in Ford’s global workforce, affecting 4,000 jobs mostly in Germany and the U.K. The company said the layoffs will begin this year and finish in 2027.
In a statement, Ford leadership blamed the cuts on weakening demand for EVs in the region and going against China’s cheaper alternatives. The company also noted a “misalignment between CO2 regulations and consumer demand,” calling on the German government in particular to catch up with the rest of the world.
“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 and greater flexibility in meeting CO2 compliance targets,” Ford Chief Financial Officer John Lawler wrote to the German government.
Ford’s sales in Europe have suffered this year, dropping 18% from January to September. The company’s EV sales in the U.S. have also taken a hit, dipping 8% in October from the previous year.
Ford’s European cuts come as the region’s automakers struggle to remain competitive. Germany’s largest carmaker, Volkswagen, has threatened to close factories and cut jobs to remain above water.
Ford’s cuts are the second round of massive layoffs in the region. Last year, the company announced it would ax 3,800 jobs in Europe and close its Saarlouis plant in Germany.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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