Ford Motor Co. plans to cut 4,000 jobs in Europe by 2027 as it struggles to sell its new battery-electric cars amid a slowdown in EV demand in the region and increasing competition from Chinese rivals.
The job losses will reduce the auto maker's European work force by 14 percent. Most of the cuts will happen in Germany, where 2,900 jobs will be cut, with 800 jobs to be eliminated in the United Kingdom and 300 in other European markets, Ford said.
Globally, the layoffs represent around 2.3 percent of Ford's work force of 174,000.
The cuts will "create a more cost-competitive structure and ensure the long-term sustainability and growth of its business in Europe," Ford said in a statement on Nov. 20.
Ford also said it will reduce production of its Explorer and Capri electric SUVs at its factory in Cologne, Germany, because of slow demand, putting employees there on short-time work. The reduced shifts will continue throughout the first quarter of 2025.
Speaking to reporters, Ford Europe Vice President Peter Godsell said the auto maker is experiencing "weaker demand for electric vehicles than we had previously forecast and we continue to have challenges around our operating costs."
"We need decisive action to restructure our business," he added.
Godsell specifically cited a significant increase in competition from Chinese manufacturers. "Our feeling is that we're not on a level playing field as it relates to that competition, knowing it's subsidized," he said.
Godsell said Ford hoped the job cuts would address the company's problems, but added: "we certainly can't rule out" additional measures if market conditions worsen.
