Ford previously cut 3,000 jobs, mostly in the United States, in the second half of last year. Jim Farley, the CEO, wants to improve revenues from conventional internal combustion engine models by $3 billion in order to pay for the $50 billion he is investing in the development of electric vehicles.
Following labour reductions in the US, Ford Motor Co. plans to shed 3,200 jobs in Europe to save money as it transitions to an electric vehicle fleet.
The majority of the impacted positions are focused in Germany and involve duties in product development and administrative sectors, according to the IG Metall union, which made this statement following an extraordinary works council meeting at the carmaker’s facility in Cologne. The reductions would impact about 65% of development jobs in Europe.
Development operations currently taking place in Germany will be moved to the United States, according to a statement from IG Metall.
Ford previously cut 3,000 jobs, mostly in the United States, in the second half of last year. Jim Farley, the CEO, wants to improve revenues from conventional internal combustion engine models by $3 billion in order to pay for the $50 billion he is investing in the development of electric vehicles.
Farley informed analysts in July that, following the disclosure of the impending layoffs by Bloomberg, “There is no question that some areas of the country are overcrowded. We have jobs that need to change and skills that are no longer relevant.”
Ford, on the other hand, has steadfastly declined to confirm the layoffs in Europe, claiming that “no decisions have been taken.” The business has redesigned its European footprint after battling to maintain market dominance for its passenger car lineup amid underwhelming profits. A bright spot has been its regional commercial vehicle production division.
Ford issued a warning about job cuts in Europe in June, claiming that the creation and manufacture of electric vehicles require less labour. By the end of the decade, the corporation wants to be almost totally electric in the area.
The Focus model will be phased out at the Saarlouis facility in Germany by 2025, and Ford has no further plans to produce any vehicles there. There are around 4,600 people employed there. While still committed to a $2 billion EV investment at its major European production facility in Cologne, where Ford employs some 14,000 people, the firm is looking for options for the location.
The US manufacturer’s footprint in the area has decreased after years of restructuring that saw the carmaker close or sell multiple factories and lay off thousands of people. The European Automobile Manufacturers’ Association reports that with sales of slightly over 510,000 vehicles, its passenger car market share was 4.4% last year.
Ford and Volkswagen AG initially teamed together to work on EVs several years ago in an effort to speed up Ford’s EV rollout plan. Based on VW’s modular MEB platform, the business will introduce an all-electric crossover model this year with future expansion plans.