Ford cuts 4,000 jobs in Europe – 2,900 of them in Germany
Just last week, Ford reduced working hours at its Cologne plant due to low demand for electric cars. Ford only builds two electric models there, Explorer and Capri, both of which use the MEB platform from Volkswagen. The short-time working affects 2,000 of the 13,000 employees in Cologne and is due to run until January. The move was thus partly seen as a tactical calculation, as the CO2 fleet limits will require more electric cars in 2025 than at the end of the year.
But now Ford is cracking down and cutting 4,000 jobs by 2027. “The planned job cuts will primarily impact operations in Germany but also the UK, with minimal reductions in other European markets,” the company announced. However, it is not clear from the statement which areas in Cologne are affected by the job cuts.
The first sentence of the announcement is also important according to which “Ford Motor Company today announced restructuring plans to create a more cost-competitive structure and ensure the long-term sustainability and growth of its business in Europe.” The decision was therefore made at Ford headquarters in Dearborn. However, the job cuts mentioned are still “pending consultations with its European social partners.” But the goal is clear.
Short-time working will be extended in 2025
Short-time working at the Cologne production plant will also be extended: “In addition, due to the weak economic situation and lower-than-expected demand for electric cars, we are further adjusting the production program for the new Explorer and Capri. This will result in additional short-time working days at our Cologne plant in the first quarter of 2025.”
Ford has taken a risk by phasing out the Fiesta small car and producing only electric cars at the Cologne plant. After all, the Explorer and Capri must sell well enough to sufficiently utilise a plant with an annual capacity of 250,000 cars. However, as there are already several MEB SUVs on the market, it is difficult for Ford to differentiate itself for customers – or to beat the VW brands with higher unit numbers and established MEB production in terms of price.
Ford emphasises that it has recorded “significant losses” in the passenger car segment in Europe in recent years. “The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” Ford writes.
“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” said Dave Johnston, Ford’s European vice president for Transformation and Partnerships. “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”
Overall, Ford refers noticeably often to the market conditions in Europe and the political situation. In a letter to the German government, John Lawler, Vice Chairman and Chief Financial Officer of Ford Motor Company, reaffirmed Ford’s commitment to Europe and to the 2035 emissions targets, the company writes. However, he also emphasised the need for everyone to work together to improve market conditions and ensure the industry’s future success.
“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 to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler said.
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