By Wolf von Dewitz, dpa I Wednesday, Nov. 21, 2024
BERLIN – Ford plans to cut 4,000 jobs in plants across Europe by the end of 2027 to reduce costs, including 2,900 jobs in Germany and 800 in the United Kingdom, (7,800) the US carmaker said on Wednesday.
Most of the reductions will take place at a Ford factory in Cologne, where the company also has its European headquarters. Another 300 jobs are due to be cut at Ford locations elsewhere in the European Union.
Ford has had a plant in the western German city for almost a century. The facility was transformed in recent years following a $2 billion investment to produce two electric car models.
The company currently has around 11,500 jobs in Cologne, meaning that around one in four jobs could be cut, according to the local works council. As recently as 2018, Ford employed nearly 20,000 workers in Cologne.
Like many of its rivals, Ford is struggling with weak sales in Germany and Europe. Consumer reluctance to switch to electric cars, a sluggish economy and the end of government incentives in Germany are proving challenging for carmakers.
Ford has in recent years suffered major losses in the passenger car segment, where the costs of switching to electric cars are high. The company also referred to electric car competitors and strict CO2 emission targets in its announcement of the restructuring.
Management complained that European governments have failed to create “a consistent and clear political agenda to promote electromobility.”
Ford manager Marcus Wassenberg said that the company wanted to maintain a strong business in Europe for future generations.
“We must therefore implement difficult but decisive measures to ensure Ford’s competitiveness in Europe,” he said.
