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Ford to axe 2,300 jobs in Germany

AFP
AFP - [email protected]
Ford to axe 2,300 jobs in Germany
The Ford factory in Cologne, pictured in January. Photo: picture alliance/dpa | Oliver Berg

US automaker Ford said Tuesday it would cut a total of 2,300 jobs in Britain and Germany and 200 elsewhere in Europe, citing the need to be "leaner" as competition in electric cars grows.

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The company said 2,300 positions in product development and administrative functions would be slashed in Germany and 1,300 in Britain over the next three years.

It did not specify in which countries the other jobs would be axed.

"These are difficult decisions, not taken lightly," said Martin Sander, general manager of Ford Model e in Europe.

"We recognise the uncertainty it creates for our team, and I assure them we will be offering them our full support in the months ahead," Sander said.

The company said the decision was aimed at revitalising its business in Europe and competing profitably with a new line-up of passenger vehicles.

The job cuts in Germany are lower than the 3,200 layoffs that the IG Metall union had expected in January.

READ ALSO: Which companies are currently hiring (and firing) the most in Germany?

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"The company is taking action to restructure its business in Europe, creating a leaner, more competitive cost structure," Ford said.

The company is "taking the next steps in the transformation of its business, responding to rapidly changing market conditions and a growing field of electric vehicle competitors entering the market".

Ford fell into the red last year with a $2-billion loss.

'Unapologetically American'

Like its rivals, Ford has invested heavily in electric vehicles, unveiling emission-free versions of best-selling autos like the F-series pickup truck.

Ford said its plan to offer an all-electric fleet in Europe by 2035 was "unchanged".

"We are completely reinventing the Ford brand in Europe. Unapologetically American, outstanding design and connected services that will differentiate Ford and delight our customers in Europe," Sander said.

"We are ready to compete and win in Europe. Our first European-built electric passenger vehicle is being introduced this spring and will surely turn heads."

The EU has agreed to ban sales of new petrol and diesel cars from 2035 as part of the 27-nation bloc's effort to build a carbon-neutral economy by 2050.

Electric car sales set a new market share record in the European Union in 2022, accounting for 12.1 percent of new sales compared to 9.1 percent in 2021, according to industry figures.

READ ALSO: Germany to slash subsidies for electric cars

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