Ford has announced plans to cut 4,000 jobs across its European operations while scaling back production targets for its Explorer and Capri electric vehicles (EVs). The move affects 14 percent of the automaker’s workforce on the continent, with most layoffs occurring in Germany and the UK, and smaller reductions elsewhere in Europe.
The job cuts and production slowdown reflect a challenging period for the EV market globally. In Europe, the withdrawal of government subsidies and broader economic pressures have dampened demand. The German government’s decision to end its EV subsidy program—previously offering up to €6,000 for buyers of new electric and hybrid vehicles—has significantly impacted sales. Germany, Europe’s largest EV market, saw a 37 percent year-on-year drop in EV sales in July 2024.
Ford’s European operations have felt the strain. The automaker, committed to going all-electric in Europe by 2030, relies heavily on its Cologne, Germany, factory for the assembly of its Explorer and Capri EVs. However, the ambitious goal has met substantial hurdles, leading to this retrenchment. Over the past five years, Ford has reduced its European workforce by more than 35 percent, including 3,800 jobs cut in 2023.
The rise of Chinese automakers has further intensified competition in Europe. These manufacturers have gained a foothold with lower-cost EVs, prompting European regulators to raise tariffs on Chinese imports to protect local producers. Ford CEO Jim Farley even tested a Xiaomi SU7 EV to understand the competitive advantage Chinese companies have achieved in affordability.
Ford’s CFO, John Lawler, highlighted the lack of cohesive policies to support EV adoption in Europe. In a statement, he called for greater public investment in charging infrastructure, consumer incentives, and regulatory flexibility to meet CO2 compliance targets.
Ford is also contending with challenges at home. The company recently paused production of its F-150 Lightning truck in the U.S. due to weaker-than-expected demand.
Ford’s shrinking market share in Europe adds to its woes. The automaker captured only 3.3 percent of the European passenger car market in the first nine months of 2024, down from 4.1 percent a year earlier, according to data from the European Automobile Manufacturers’ Association, as reported by Bloomberg.
This retrenchment marks another significant step in Ford’s evolving strategy as it navigates the complexities of the global EV market.
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