This is a massive blow for those affected in the future. Ford announced this Wednesday, November 20, its decision to cut 14% of its workforce in Europe. This represents a total of 4,000 jobs mainly located in Germany and the United Kingdom. Let’s take stock.
Announcement details
In total, 14% of the American manufacturer’s workforce in Europe is affected, and 2.3% of its 174,000 employees worldwide. The automobile giant, however, wants to give itself time and indicates that the layoffs will take place by 2027.
In any case, this is very bad news for our German neighbors, already marked by the massive job reduction plan carried out at Volkswagen. Ford justifies its drastic measures by weak demand for electric cars. The company thus underlines that its sales on the Old Continent fell by 17.9% at the end of September, more than the overall level of the industry, which saw a drop of 6.1%.
Caradisiac also mentions a figure which says a lot about these difficulties. Thus, over the first three quarters of 2024, the Model e division, which manages green vehicles, suffered a loss of 3.66 billion euros.
Ford is also demanding that the German government, which has eliminated subsidies for electric cars, review its copy. Quoted by Challengesthe director of the American group, John Lawler calls it thus:
What we are missing in Europe and Germany is a clear and unequivocal political agenda to promote electric mobility, through public investments in charging infrastructure, substantial incentives (…) and greater flexibility in relation to CO2 targets.
The announcement had the effect of a bombshell for the manufacturer’s employees. The unions, very powerful across the Rhine, do not intend to let this happen. They ask the European management of the company to start negotiations.
Relayed by Yahoo FinanceKnut Giesler of IG Metall, who heads the branch of this collective organization in the state of North Rhine-Westphalia, where the main Ford plant in Cologne is located, warns in advance: “ If there is no will to do this, we are also ready for a difficult confrontation”.
Aware of the danger of competition from Chinese ecological cars, the European Union has for its part imposed higher customs duties on vehicles produced within the Middle Kingdom.
