Ford’s Future in Germany at Risk with Drastic Job Cuts
Ford’s recent announcement of plans to cut 4,000 jobs in Europe by the end of 2027, with the majority of them in Germany, has sparked backlash and concern among trade unions and government officials. The move comes as Ford faces significant losses in recent years, attributed to slower-than-expected demand for its electric vehicles and increased competition in the market.
According to reports from the German newspaper Automobilwoche, discussions about Ford’s job cuts are underway among economic committee members in the state parliament of North Rhine-Westphalia. The SPD parliamentary group leader, Jochen Ott, expressed disappointment in Ford’s decision, stating that the job cuts are a breach of the agreement reached earlier in the year and a lack of transparency in the process.
Germany’s largest trade union, IG Metall, also raised concerns about the impact of Ford’s job cuts on the future of the company’s operations in Cologne. With plans to slash one in four of its current 12,000 jobs by 2027, Ford’s workforce in Cologne will be halved in just a decade.
The production of two electric models, the Explorer and Capri EVs, in Cologne is also facing challenges due to a lack of demand. Despite launching the electric Explorer in June and the Capri EV last month, Ford is struggling to maintain production levels.
The rise of new competition in the European market, particularly from Chinese automakers like BYD, MG, and NIO, has put pressure on legacy automakers like Ford to adapt to the changing landscape. Chinese EV manufacturers are targeting European buyers with advanced new models, posing a threat to established automakers.
BYD, in particular, is closing in on Ford in global deliveries and could surpass the American automaker soon. Ford’s CEO, Jim Farley, acknowledged the competitive threat posed by Chinese automakers and emphasized the need for Ford to address the challenge.
In response to the evolving market dynamics, Ford is shifting its focus to smaller, more profitable EVs with a new low-cost platform. However, the first model, a midsize electric truck, is not expected to hit the market until 2027, raising concerns about whether it will be enough to compete effectively.
Overall, Ford’s future in Germany is at risk as the company faces tough decisions amid changing market conditions and increasing competition. The job cuts and production challenges in Cologne highlight the challenges Ford must overcome to secure its position in the European market.
