Is the entire Ford EV catalogue in trouble or will Malaysia’s love for them sustain it
Ford announced plans to cut around 4,000 jobs, or 14% of its European workforce, due to weak electric vehicle (EV) demand, inadequate government support, and competition from subsidised Chinese rivals. The cuts, affecting primarily Germany and the UK, represent about 2.3% of Ford’s global workforce.
Ford joins other automakers like Nissan, Stellantis, and GM, who have all been reducing costs as the industry grapples with challenges, including high EV prices that limit consumer demand. The news caused Ford’s shares to drop by 1.8 percent. The layoffs come amid struggles in Germany, where Volkswagen is also facing pressure to close plants and cut jobs to remain competitive.
Moreover, Ford’s challenges are compounded by quality issues, supplier problems, and inefficiencies in its legacy operations. Furthermore, the ongoing political and trade tensions in Germany, particularly with China and the U.S, add to the uncertainty. The job cuts are expected to be completed by the end of 2027, pending union negotiations, with 2,900 positions to be eliminated in Germany and 800 in the UK.
Additionally, Ford plans to reduce production of its Explorer and Capri EV models at its Cologne plant. Peter Godsell, Ford Europe VP, cited weaker-than-expected EV demand and high operating costs as reasons for the restructuring, though he acknowledged that further cuts may be necessary if market conditions worsen.
On top of that, through September, Ford’s European sales had fallen by 17.9 percent, far surpassing the industry-wide decline of 6.1 percent. German unions have expressed strong opposition to the job cuts, calling for discussions about alternative solutions. Knut Giesler, a union leader, warned of a “tough confrontation” if Ford does not engage in talks.
Ford also urged the German government to reinstate EV subsidies and improve charging infrastructure. Since Berlin ended EV subsidies in December, German EV sales have dropped by 28.6 percent. Ford’s CFO, John Lawler, highlighted the lack of a clear policy agenda for advancing e-mobility in Germany, including investments in charging infrastructure and incentives.
The job cuts are part of a broader restructuring for Ford in Europe, which already announced 3,800 job cuts in February 2023 and is closing its Saarlouis plant. Additionally, the EU has imposed tariffs on Chinese-made EVs, citing unfair subsidies. Ford’s German division faces high labour and energy costs, with the majority of the cuts affecting its Cologne site.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
