LONDON (Reuters) – Car maker Ford said on Wednesday it would cut around 14% of its workforce in Europe due to heavy losses in recent years caused by weak demand for electric vehicles (EVs), a shortage government support in this area and renewed competition.

The American thus joins Nissan, Stellantis and GM on the list of groups penalized by the difficulties of the industry, particularly in the face of China, and the challenges posed by the cost of electric vehicles for the consumer.

Ford said the 4,000 jobs affected were mostly in Germany and the United Kingdom. Overall, these layoffs represent approximately 2.3% of Ford’s workforce, which totals 174,000 employees.

The measures will deal a particularly severe blow to Germany, Europe’s largest economy and largest automaker, where Volkswagen is already threatening to close factories, cut wages and cut thousands of jobs in order to remain competitive.

The political crisis in which the country is becoming increasingly mired also adds to the uncertainty of businesses, whose prospects are clouded by the renewed trade tensions with China since Donald Trump’s victory in the presidential election. American.

Ford said layoffs in Europe are expected to take place by the end of 2027.

European automakers “face significant competitive and economic headwinds, as they face a mismatch between CO2 regulations and demand for electric vehicles,” said the group in a press release.

At the end of September, Ford sales in Europe fell by 17.9%, a much more alarming figure than the rest of the sector, which fell by 6.1%.

Ford urged the German government to provide more incentives to go electric and build better charging infrastructure to make the transition easier for consumers.

Berlin ended subsidies for electric vehicles last year. Over the first nine months of the year, EV sales in the country fell by 28.6%.

“What we are missing in Europe and Germany is a clear and unequivocal political agenda to promote electric mobility, through public investment in charging infrastructure, substantial incentive measures (.. .) and greater flexibility in relation to CO2 targets,” wrote the director of the American group, John Lawler, in a letter to the German government.

Ford had already announced in February 2023 the layoffs of 3,800 people in Europe and intends to close its plant in Saarlouis, Germany, eliminating additional jobs.

(Written by Nick Carey, Pauline Foret, edited by Kate Entringer)

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