Ford deletes 4,000 jobs in Europe

Ford deletes 4,000 jobs in Europe

Ford plans to reduce almost 4,000 jobs in Europe in the next three years, which is about 14 % of the workforce in the region. This step takes place due to the falling demand for electric vehicles and the increasing competition from China.

Details on the planned job cuts

The US company announced on Wednesday that the job cuts should be completed by the end of 2027, subject to the consultation with the unions. The focus of the savings will be in Germany and the United Kingdom.

challenges for the automotive industry

"The global automotive industry is still in a phase of the revolution, especially in Europe, where the industry is faced with competition, regulation and economic difficulties," said Ford in a message.

critical measures to secure competitiveness

Dave Johnston, the European Vice President of Ford for Transformation and Partnerships, emphasized: "It is crucial to take difficult but crucial measures to ensure Ford's future competitiveness in Europe." The global automobile manufacturers are under pressure due to weak sales figures and intensive competition from China, where manufacturers of electric vehicles steal market shares of western rivals that have traditionally dominated the largest market for passenger cars.

financial losses and price adjustments

The Ford car division has suffered significant losses in Europe in recent years. Like other automobile manufacturers, Ford is also forced to reduce prices for its electric vehicles, which have so far been very deficient. In addition, the production goals for electric vehicles were reduced.

production adjustments due to sunken demand

Last year, the company already announced that it would reduce around 4,900 jobs in Europe. On Wednesday, Ford announced that the production of his new models of Explorer and Capri will continue to be adjusted in Europe, which will lead to shortened working days for employees. This happens "due to the weak economic situation and the lower than expected demand for electric cars".

demands for better market conditions

The Chief Financial Officer from Ford, John Lawler, recently sent a letter to the German government and called for measures to improve market conditions for automobile manufacturers. "What we lack in Europe and Germany is a clear and clear political agency to promote e-mobility, such as public investments in charging infrastructure, sensible incentives to support consumers when switching to electrified vehicles, improving cost efficiency for manufacturers and greater flexibility in compliance with CO2 specifications," said Lawler.

comparison with Volkswagen

The news about the job cuts at Ford come only a few weeks after Volkswagen has announced that they reduce the employee salaries by 10 % to protect jobs and secure the future of the company. The German automobile manufacturer plans to close at least three factories in his home country and to relieve tens of thousands of employees, as he is fighting with a weak automotive market in Europe and a strongly falling market share in China.

willingness to sacrifice the Volkswagen employees

On Wednesday, Volkswagen employees said they are ready to give up salary increases of 1.5 billion euros ($ 1.6 billion) if the company's managers promise not to close factories and are willing to lose part of their bonuses.