Wednesday 20/November/2024 – 09:12 PM
Ford said on Wednesday it would cut about 14% of its European workforce, blaming significant losses in recent years exacerbated by weak demand for electric vehicles, a lack of government support for the transition to electric vehicles, and increased competition.
Ford will cut European jobs due to electric cars
The American company is the latest automaker, after Nissan, Stellantis and General Motors, to cut costs as the industry struggles with increasing competition from Chinese rivals in Europe, declining demand in China, and the challenges of switching to electric cars that are still too expensive for most consumers.
The company said the 4,000 job cuts will be primarily in Germany and the United Kingdom. Globally, the layoffs represent about 2.3% of Ford’s workforce of 174,000.
These measures will be a major blow to Germany in particular, the largest economy in Europe and the largest car maker after Volkswagen, and threaten to close factories, cut wages and eliminate thousands of jobs to improve its ability to compete.
The country’s worsening political crisis is also adding uncertainty to businesses grappling with rising trade tensions with China and the aftermath of Donald Trump’s victory in the US elections.
She said Ford The European layoffs should take place by the end of 2027, making clear that European automakers face significant competitive and economic headwinds, while also addressing a mismatch between CO2 regulations and consumer demand for electric vehicles.
During September of this year, Ford’s sales in Europe fell by 17.9%, far outpacing the industry-wide decline of 6.1%.
