US automotive giant Ford plans to cut 4,000 jobs in Europe by 2027, pointing to significant losses in recent years.

The carmaker said on Wednesday that it would cut 14% of its European workforce with some 2,900 job cuts in Germany expected by the end of 2027. Another 800 jobs are due to be cut in the UK and 300 in other EU nations.

Europe’s automakers “face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” the company said in a statement.

Dave Johnston, Ford’s European vice president for transformation and partnerships, said was “critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

The company also plans to cut working time for workers in its plant in Cologne, Germany, which employs around 11,500 people, and reduce production of the Capri and Explorer electric vehicles manufactured there.

Ford said job cuts would happen in consultation with labor representatives.

Tough times for EVs in Europe

On Wednesday, the company said that “the global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility.”

Western carmakers could face billions in fines if they fail to meet new EU regulations on carbon emissions which are due to go into force next year. Their push to sell more EVs is also curbed by competition from China, where a myriad of carmaking firms are able to offer cheaper electric cars.

On top of upcoming regulation and increased competition, Berlin was forced to cut government subsidies for EVs in December last year, in order to pass the government budget. Analysts report a sales slump of 28.6% for electric cars in Germany in the first nine months of this year. 

Ford puts pressure on German government

Ford’s management urged Berlin to improve market conditions for electric vehicle sales. In a letter to the German government, Ford’s chief financial officer John Lawler said Germany and Europe needed  “an unmistakable, clear policy agenda” to promote electric mobility, which would include “public investments in charging infrastructure, meaningful incentives… and greater flexibility in meeting CO2 compliance targets.”

According to Ford’s managing director for Germany, Marcus Wassenberg, the latest cuts show the ongoing changes in the car industry. He pointed out high labor and energy costs in Germany, where economy is deeply linked with its premium carmaking brands.

The news comes as Germany’s Volkswagen is also set on cutting thousands of jobs in its German plants.

More to follow…