Delhi Delhi: Ford Motor Co said it will cut its workforce by 4,000 in Europe and the UK by the end of 2027 due to challenges in the economy and pressure from rising competition and lower-than-expected sales of electric cars. Ford said on Wednesday that most of the job cuts would be in Germany and would be done in consultation with employee representatives. Of the total, 2,900 jobs would be lost in Germany, 800 in Britain and 800 in other EU countries. 300. Ford has 28,000 employees in Europe and 174,000 worldwide.
“The global auto industry is undergoing significant disruption as it moves toward electrified mobility,” the company said in a statement. “This change is particularly acute in Europe, where automakers are facing significant competitive and economic challenges, as well as the mismatch between CO2 regulation and consumer demand for electrified vehicles,” the statement said. In Europe, automakers must sell enough electric vehicles to meet new, lower limits for fleet average carbon dioxide emissions in 2025, and face a long-term EU target of 2035 of reducing emissions to zero, Which would mean the elimination of most vehicles with internal combustion engines.
However, EV sales have declined as inflation-weary consumers have stopped spending and major car market Germany has eliminated government purchase incentives for EVs. Sales of electric vehicles declined 5.8 percent in the first nine months of the year amid an overall shrinking market for cars. Carmakers are also facing increasing competition from Chinese-made electric vehicles.
The company said it would also reduce workers' working hours at its plant in Cologne, Germany, where it makes the Capri and Explorer electric vehicles.
Ford's sales fell 15.3 percent in the first nine months of the year compared with the same period last year, according to the European Automobile Manufacturers Association. The company's market share declined from 3.5 percent to 3 percent. The automaker, headquartered in Dearborn, Michigan, saw a 26 percent decline in company net profit in the third quarter to $892 million as it had to write down assets for its canceled three-row electric SUV. 1 Charged billion dollar accounting fees. The company cited higher warranty and other costs.
Ford is an established brand in Europe and will celebrate its 100th anniversary in business in Germany next year. Its main plant in Cologne began production in 1931; Henry Ford and then Mayor Konrad Adenauer, who later became Chancellor of Germany, were present at the groundbreaking ceremony.
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