FRANKFURT, Germany (AP) – Ford Motor Co. says it will cut its workforce in Europe and Britain by 4,000 by the end of 2027, citing economic headwinds and pressure from increased competition and weaker-than-expected electric car sales.
Ford said Wednesday that the bulk of the job cuts will take place in Germany and will be carried out in consultation with employee representatives.
The company said it would also reduce working hours for workers at its plant in Cologne, Germany, where it makes the Capri and Explorer electric vehicles.
Dave Johnston, Ford’s European vice president for transformation and partnerships, said in a statement that “it is critical to take tough but decisive action to ensure Ford’s future competitiveness in Europe.”
The company said that “the global automotive industry continues to be in a period of significant disruption as it transitions to electrified mobility.”
“The transformation is particularly intense in Europe, where automakers face significant competitive and economic headwinds while also addressing a misalignment between CO2 regulations and consumer demand for electrified vehicles,” the statement said.
European carmakers must sell enough electric vehicles to meet new, lower limits for average fleet CO2 emissions by 2025. Electric vehicle sales have lagged as consumers, fed up with inflation, hold back on spending and after major auto market Germany dropped government purchasing incentives for electric cars.
The European Automobile Manufacturers’ Association has called for a faster review of the lower C02 limits, scheduled for 2026.
