Bet on electric cars not working yet: Ford cuts 4,000 workers in Europe
Ford Motor has announced it will cut 4,000 jobs in Europe by 2027, representing 14 per cent of its workforce in the region. The main losses will come to Germany and the UK. This decision is due to the difficulties in the electric car market and changes in the company's model policy.
Here's What We Know
In a press release, Ford notes that the European passenger car segment is showing a decline and the shift to electrified models has created serious challenges. The automaker also acknowledged that increased competition, stringent environmental regulations and regulatory uncertainty are worsening the situation. However, the U.S. automaker is falling harder in Europe than its competitors. According to Reuters, while overall new car sales in Europe fell 6.1 per cent in the first nine months of 2024, Ford's sales fell 17.9 per cent.
The main blow came from a change in the company's strategy. Ford has halted production of the popular Mondeo and Fiesta models, and is also preparing to stop production of the Focus. Obviously, the policy aimed at expanding the range of crossovers and electric cars is not yet bringing the expected results.
The company's CFO, John Lawler, in his address to the German government called for a more transparent policy on electric mobility, including investment in charging infrastructure and stimulating consumer demand. At the same time, critics point out that Ford's problems in Europe go far beyond external factors.
The layoffs are expected to take place by the end of 2027. It is already known that 2,900 jobs will be cut in Germany and 800 in the UK.
