Photo = Yonhap news

 

 

[Alpha Biz= Reporter Kim Sangjin] U.S. automaker Ford has announced plans to cut an additional 4,000 jobs in Europe as it faces a temporary stagnation in electric vehicle (EV) growth, coupled with intensifying price competition from Chinese EV makers and potential challenges with the U.S. Inflation Reduction Act (IRA).

In a statement released on November 20, Ford revealed that it will reduce its European workforce by this number by the end of 2027. This includes 3,000 job cuts in Germany and 800 in the UK, accounting for 14% of its total European workforce of 28,000 employees. This follows a prior announcement in early 2023 to lay off 3,800 workers in Europe, making this a continuation of cost-cutting measures.

Dave Johnston, Vice President of Ford Europe, explained, "It is critical for Ford to take difficult yet decisive actions to ensure future competitiveness in Europe."

The decision reflects the broader challenges facing the global automotive industry, including a slowdown in EV market growth and heightened competition from Chinese manufacturers offering more affordable alternatives. Many automakers are grappling with declining demand and the need to streamline operations.

Ford has been reducing its European presence over the years, shifting focus to more profitable models and shrinking its vehicle lineup. Volkswagen, Europe’s largest automaker, is also feeling the pinch, with plans to close at least three factories in Germany and cut tens of thousands of jobs due to declining demand in Europe and falling market share in China.

These developments highlight the growing pressure on legacy automakers to adapt to a rapidly changing automotive landscape while managing profitability and maintaining competitiveness in the EV era.

 

 

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