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Ford announced yesterday it is cutting 4,000 jobs in Europe as the automaker faces an uphill battle in electric vehicle sales. This is the latest in a series of announcements from automakers about layoffs at Nissan, Stellantis, Volkswagen and others as the global auto market shifts again.
Vandal breaks a commonly used speed camera in Canada.
According to Reuters, the Blue Oval blames this round of layoffs, most of which will take place in Germany, on a lack of demand for electric cars and governments not doing enough to support the expansion of the EV market. The layoffs will not happen immediately; some will last until the end of 2027.
It wasn’t long ago that Ford and other automakers openly mocked competitors like Toyota for not declaring they were going “all in” on electric cars. My how the turntables.
The market didn’t seem to like this move by Ford, with the automaker’s shares falling 1.8% on Wednesday. It’s also not good news for Germans, many of whom work for the auto industry, as VW and others say they are also considering job cuts in the country.
Reuters rightly pointed out that Ford has been facing some serious problems lately, thanks to some runaway costs with major issues stemming from warranty issues, quality control, recalls, parts suppliers and more.
It appears that pouring a significant amount of resources into the development and production of electric vehicles has only added to the automaker’s problems. We really don’t want to see Ford fail, and we’re not saying it will, but a few years ago the Blue Oval, GM and others were so short-sighted in their push for electric cars that it seems like you reap what you sow kind of moment .
Ultimately, these measures impact families, as those laid off are often assembly line workers. We wouldn’t be surprised to see more layoffs at other automakers in the near future as this market shift continues.
Image via Ford
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