Ford has become the latest major automaker to announce significant layoffs in response to a slowdown in electric vehicle (EV) sales and increasing competition from Chinese manufacturers. The company revealed it would eliminate 4,000 positions across Europe, including 800 in the UK, and 2,900 in Germany. However, the UK’s Dagenham and Halewood factories will remain unaffected.
The job cuts represent 14% of Ford’s 28,000-strong European workforce and 2.3% of its global headcount of 174,000 employees. The reductions, which will primarily affect product development and administrative roles, aim to streamline operations and address economic challenges in the automotive industry.
Ford also announced it is scaling back production of its new electric Explorer and Capri models at its $2 billion upgraded factory in Cologne, Germany, citing weak demand and economic uncertainty. The plant will reduce working hours as the company shifts focus.
The EV slowdown has led many manufacturers, including Ford, to reconsider their strategies. Some are increasing production of hybrid vehicles, which combine internal combustion engines with smaller batteries, as a short-term measure. Ford recently canceled an electric SUV in the US, mirroring moves by Toyota, Volvo, and Bentley to emphasize hybrids.
Ford’s European vice president, Peter Godsell, called for flexibility in meeting the UK’s Zero Emission Vehicle (ZEV) mandate, which requires automakers to sell a growing percentage of EVs annually. “The UK ZEV mandate is challenging. The market conditions are making it unworkable at the moment,” Godsell said.
The ZEV mandate, set to enforce stricter targets in the lead-up to the 2030 ban on new petrol and diesel cars, has been criticized by carmakers as overly rigid. Manufacturers, including Ford, Volkswagen, and Tesla, have urged the UK government to allow more hybrid sales in the coming years to avoid potential disruptions.
The UK government acknowledged the industry’s concerns and pledged to collaborate with automakers to support the transition to electric cars while considering potential adjustments to the mandate.
Ford’s global financial chief, John Lawler, emphasized the need for government support to boost EV adoption in Europe. He called for expanded public investments in charging infrastructure, meaningful incentives for consumers, and policies to improve the cost competitiveness of EV manufacturing.
This is not Ford’s first major workforce reduction in Europe. Last year, the company cut 1,300 UK jobs as part of a wider reduction of 3,800 positions across the continent. Those cuts targeted internal combustion engine operations, reflecting the industry’s pivot toward electrification.
The UK government has expressed concern over the job losses, urging Ford to provide detailed plans to mitigate the impact on workers and their families. Despite the layoffs, the government reaffirmed its commitment to collaborating with Ford on its manufacturing future in the UK.
