Ford workers in Germany are gearing up for a strike as the future of their jobs hangs in the balance. The American automaker announced plans to cut around 4,000 jobs in Europe by 2027, with the majority of the cuts expected in Germany and the UK. This move comes as Ford faces significant losses and a challenging market environment, with the rapid rise of electric vehicles impacting demand.
The restructuring includes slowing production at the Cologne EV plant, where models like the electric Explorer and Capri are manufactured. This decision has not been well-received by the workforce, as evidenced by a recent vote by IG Metall members in favor of industrial action. The union is pushing Ford to act quickly to address the concerns of its employees, or face the consequences of a strike.
Ford is also facing tough competition in the EV market, particularly from Chinese automakers like BYD. In a surprising turn of events, BYD outsold Tesla in Germany last month, highlighting the growing influence of Chinese EV manufacturers in the European market. This increased competition, along with the looming threat of auto tariffs, has put pressure on Ford to innovate and adapt to changing market dynamics.
Despite these challenges, Ford has made significant strides in the EV space, with the launch of models like the Explorer, Capri, and Puma Gen-E in Europe. These new offerings have helped boost the company’s wholesale volume and position it as a key player in the electric vehicle market. Additionally, Ford’s “Power Promise” promotion in Europe, which offers EV buyers a free home charger and other perks, has been well-received by customers.
As Ford navigates these turbulent waters, it remains to be seen how the company will address the concerns of its workforce and continue to compete in an increasingly crowded EV market. The outcome of the strike in Germany could have far-reaching implications for the future of Ford’s operations in Europe.
[Source: Reuters]
