Ford recently announced it’s slashing a big chunk of its workforce in Europe. This move shows just how tough things are getting for automakers switching over to electric vehicles. The changes are set to shake up the industry, especially in key spots like Germany and the United Kingdom.
workforce reduction details
Ford revealed it will cut 14% of its European workforce, which means 4,000 jobs will be gone by 2027. Most of these layoffs will hit operations in Germany and the United Kingdom. Given that Ford currently employs 174,000 people worldwide, these cuts make up about 2.3% of its global team.
Germany feels this change the most, coming on the heels of similar cuts at Volkswagen (another major automaker dealing with its own set of challenges). Together, these moves highlight the growing difficulties faced by German carmakers as they try to adjust to shifting market demands and economic pressures.
why Ford is making cuts
Ford points to a drop in demand for electric vehicles (EVs) as the main reason for these cuts. By the end of September, Ford’s European sales fell by 17.9%, a steep decline compared to the overall industry drop of 6.1%. This shows Ford is really struggling to snag a piece of the rapidly growing EV market.
The company’s Model e division, which handles electric models, didn’t make things any easier. In the first three quarters of 2024, this division racked up losses of 3.66 billion euros (a hefty sum, hinting at the steep challenges in moving away from traditional engines).
calls for government help
Ford isn’t keeping quiet about what it sees as a lack of support from the government for electric mobility programs. John Lawler, Ford’s director, has taken aim at moves like the German government’s decision to scrap EV subsidies. He’s calling for “a clear and unequivocal political agenda” that would involve public funding for charging stations, strong incentives, and more wiggle room with CO2 targets (in other words, policies that truly back the switch to EVs).
Lawler’s outspokenness reflects a growing feeling among automakers that without the right government backing, building a thriving EV market might stay out of reach.
union pushback and potential clashes
Not everyone is happy with these job cuts. In Germany, unions have fired back against Ford’s plans. Knut Giesler from IG Metall, who represents workers at Ford’s Cologne plant in North Rhine-Westphalia, is pushing for talks with Ford’s European management. Giesler warned that if discussions stall, things could get heated: “If there is no willingness to do so, we are also ready for a difficult confrontation” (a sign that labor disputes might be on the horizon).
what’s going on in the industry
Adding another layer to the story, European trade policies are stirring things up in the EV market. The European Union now charges higher tariffs on vehicles made in China (a move aimed at easing the pressure from Chinese electric car makers).
These tariffs are part of a broader effort by European lawmakers to safeguard local industries while keeping things fair for everyone—a tricky balance for companies like Ford that are trying to navigate international markets.
As Ford pushes ahead with its restructuring while juggling these overlapping challenges, both smart business moves and supportive policies from the government will play a big role in shaping the future of car manufacturing in Europe. Whether you’re an employee facing uncertainty or a consumer watching the shift toward greener rides, what’s happening at Ford offers a front-row seat to a market in transition.
