- Ford is cutting 4,000 jobs in Europe after "significant losses" in its passenger vehicle operations.
- The company also cited rising competition and weaker-than-expected demand for EVs.
- Ford CFO John Lawler called for joint industry action in a letter to the German government.
Ford said it would cut 4,000 jobs in Europe by the end of 2027 amid rising competition and weaker-than-expected demand for EVs.
The job cuts will mostly affect Germany and the UK after the company suffered "significant losses" in its passenger vehicle operations, it said in a statement Wednesday.
Ford also said it would impose additional short-time working days at its Cologne plant in the first three months of 2025.
Dave Johnston, Ford's European vice president for transformation and partnerships, said: "It is critical to take difficult but decisive action to ensure Ford's future competitiveness in Europe."
The company said the global auto industry faced significant disruption as it shifted to EVs. Automakers had to cope with "significant competitive and economic headwinds" in Europe and a "misalignment between CO2 regulations and consumer demand for electrified vehicles," it said.
The company said its chief financial officer, John Lawler, had written to the German government calling for joint action to improve market conditions and ensure the industry's success.
"What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets," Lawler said.
Last month, Ford said it would pause production of the F-150 Lightning pickup in Detroit for seven weeks and cut managers' bonuses in the latest cost-cutting moves amid sudden changes in the US electric vehicle market.
The news comes after General Motors announced 1,000 layoffs Friday. The company said it had "to optimize for speed and excellence," which meant "operating with efficiency, ensuring we have the right team structure and focusing on our top priorities," AP reported.
Earlier this month, Japanese automaker Nissan announced 9,000 layoffs and a 20% cut in global production amid falling sales in the US and China.