- Ford plans to eliminate 4,000 jobs by 2027, focusing layoffs in Germany and the UK.
- Its European passenger vehicle division has faced substantial financial losses in recent years.
- Lower-than-anticipated EV demand and intensified competition are cited as key factors.
The automotive industry’s transition to electric vehicles continues to expose the growing pains of even the biggest players. On Wednesday, Ford announced plans to cut 4,000 jobs across Europe by the end of 2027, citing financial challenges tied to the EV shift and rising competition. The automaker is also scaling back operations at its Cologne plant in Germany, attributing the move to sluggish demand for its EVs.
Ford pointed to “unprecedented competitive, regulatory, and economic headwinds” as the driving forces behind the cuts, emphasizing that its European passenger vehicle business has endured “significant losses” in recent years.
The Job Cuts Amount to 2.3% of Ford’s Global Workforce
The planned reductions represent nearly 14% of Ford’s European workforce or 2.3% of its global personnel. Unsurprisingly, Germany and the UK will bear the brunt of these layoffs, with only “minimal reductions” expected across other European markets. The cuts are set to unfold over the next three years, with Ford pledging to consult with social partners throughout the process.
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Adding to the grim outlook, Ford announced more short-time working days at its Cologne facility for the first quarter of 2025. The company cited “lower-than-expected” EV demand as the reason, exacerbating concerns over the viability of its current strategy.
The facility is home to production for the fully electric Ford Explorer and Capri, which share their underpinnings with the VW ID.4 and ID.5. This measure is a follow-up to the recent adjustment on the EVs production schedule, with employees already working alternate weeks until the end of the year.
Emission Targets and Consumer Disconnect
Dave Johnston, Ford’s European vice president for Transformation and Partnerships, defended the job cuts as a painful but necessary step: “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.” Yet the broader picture reveals frustration with the regulatory environment.
As with most automakers, Ford is not happy with the strict emission regulations in Europe, saying there is a “misalignment” between CO2 targets and consumer demand for electrified vehicles.
Ford Calls for Policy Overhaul
This disconnect has prompted Ford to escalate its lobbying efforts. In a recent letter to the German government, CFO John Lawler urged policymakers to improve market conditions for EVs. The letter outlined key asks, including “public investments in charging infrastructure, meaningful incentives, improved cost competitiveness, and greater flexibility in meeting CO2 compliance targets.”
While Ford is clearly seeking ways to navigate the EV transition, its European troubles underline a larger industry-wide challenge: balancing regulatory pressure with market realities. For now, the road ahead for Ford, and others, remains bumpy.
