According to Bloomberg, the reductions will primarily hit businesses in Germany and the UK while oh? cause cites a lack of government support for the shift to EVs
Ford said on Wednesday it would cut about 14 percent of its European workforce, equivalent to 4,000 jobs, blaming significant losses in recent years exacerbated by weak demand for electric vehicles, a lack of government support for the turnaround towards EVs and increasing competition.
According to Bloomberg, the staff reductions will mainly affect businesses in Germany and the UK until the end of 2027, pending consultations with unions and governments. The automaker also announced Wednesday that it will cut production of the Explorer and Capri EV models at its plant in Cologne, Germany.
Ford announced in early 2021 that it would drastically overhaul its European operations, saying it would sell only electric cars by the end of the decade. That strategy appears to be backfired, with the company announcing early last year that it would cut 3,800 jobs. It is noted that Volkswagen AG and Stellantis NV have also issued warnings of falling profits, citing a large slowdown in vehicle sales and governments not backing support for electric vehicle purchases.
“What we lack in Europe and Germany is an unequivocal, clear political agenda to promote electrification,” John Lawler, Ford’s vice president and chief financial officer, said in a statement. He called for more public investment in charging infrastructure, meaningful EV incentives and more flexibility in CO2 reduction targets, which the EU and UK will tighten next year.
Source: Skai
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