Ford announced plans to cut around 4,000 jobs, approximately 14% of its European workforce, primarily in Germany and the UK, due to significant losses, weak demand for electric vehicles (EVs), and rising competition, Reuters reports.
Ford’s sales in Europe have declined significantly, falling 17.9% through September 2023, compared to an industry-wide drop of 6.1%. The automaker faces challenges from increasing competition, particularly from Chinese EV manufacturers, and has urged Germany to provide more incentives and better charging infrastructure for EVs, noting that Berlin’s end to EV subsidies in late 2022 contributed to a 28.6% decline in EV sales this year.
The layoffs are part of Ford’s broader European restructuring, which previously included 3,800 job cuts and the planned closure of its Saarlouis plant in Germany in 2024.
This follows similar cost-cutting moves by other automakers like Nissan, Stellantis, and GM, amid growing competition from Chinese rivals and shifting consumer demand. The EU has responded by imposing tariffs on Chinese-made EVs, accusing them of benefiting from unfair subsidies.
