Ford will cut 4,000 jobs in Europe and the UK

Ford Motor Company says it will cut its workforce by 4,000 in Europe and the United Kingdom by the end of 2027, citing problems in the economy and pressure from increased competition and weaker-than-expected sales of electric cars.

Ford of America said on Wednesday (Thursday AEDT) that most of the job cuts will come in Germany and will be carried out in consultation with employee representatives.

Of the total number, 2,900 jobs would be lost in Germany, 800 in Britain and 300 in other European Union countries. Ford has 28,000 employees in Europe and 174,000 worldwide.

“The global automotive industry remains in a period of significant disruption as it transitions to electric mobility,” the company said in a statement.

“The transformation is particularly intense in Europe where automakers face significant competitive and economic hurdles while also dealing with the mismatch between CO2 regulations and consumer demand for electrified vehicles,” the statement said.

In Europe, vehicle manufacturers must sell enough electric vehicles (EVs) to meet new, lower limits on fleet average carbon dioxide emissions from next year and meet the EU’s long-term target of zero emissions by 2035, which would meant the elimination of most vehicles with internal combustion engines.

However, sales of electric vehicles have lagged as inflation-weary consumers restrained spending and after Germany’s big car market scrapped government incentives to buy electric vehicles.

Sales of electric vehicles fell by 5.8 percent in the first nine months of this year on the overall shrinking of the car market. Automakers are also facing increasing competition from Chinese-made electric vehicles.

The company said it will also cut hours for workers at its factory in Cologne, Germany, where it makes the Capri and Explorer electric vehicles.

Ford sales fell 15.3 percent in the first nine months of this year compared to the same period last year, according to data from the European Automobile Manufacturers Association.

The company’s market share fell to 3 percent from 3.5 percent.

The Michigan-based carmaker saw company-wide net profit fall 26 percent to $US892 million ($1.3 billion) in the third quarter as it took $US1 billion ($1.5 billion) in accounting charges to write down assets for the canceled electric SUV. The company cited a higher warranty and other costs.