Ford's Bold Restructure Amid European EV Challenges

Ford is cutting around 14% of its European workforce due to weak EV demand, insufficient government support, and competition from subsidized Chinese rivals. This follows similar actions by Nissan, Stellantis, and GM. The cuts will primarily affect Germany and the UK, with plans to continue restructuring until 2027.

Ford announced a significant reduction in its European workforce, planning to slash around 14% of jobs, as it grapples with poor demand for electric vehicles (EVs) and tough competition from Chinese manufacturers. This follows similar cost-saving measures by Nissan, Stellantis, and GM.

The automaker's decision will mainly impact Germany and the United Kingdom, where 4,000 jobs will be eliminated. This move symbolizes the broader struggle within the European automotive industry to balance high costs and evolving market conditions. Ford plans to complete these layoffs by 2027, aligning with ongoing discussions with labor unions.

Additionally, Ford is urging Germany to enhance support for e-mobility, calling for improved incentives and charging infrastructure amid suspended subsidies. Chief Financial Officer John Lawler highlighted the need for a clearer policy agenda to boost EV adoption in Europe, as Ford undergoes further restructuring efforts.

(With inputs from agencies.)