Ford is collapsing in Europe!

Ford recently took a series of measures in Europe to address its business difficulties. Due to sluggish demand for electric vehicles, the company last week reduced working hours for 2,000 of its 13,000 employees at its Cologne plant in Germany, a situation that will continue until January next year. This is seen as a tactical move to address the 2025 CO2 fleet limits and shifting demand for electric vehicles.

Now, Ford has announced even more drastic plans, with around 4,000 job cuts in Europe by 2027, including 2,900 at the Cologne plant. The layoffs primarily affect its German operations but also involve its UK business, with smaller impacts in other European markets. However, it remains unclear which specific areas in Cologne will be affected. The short-time working scheme at the Cologne plant will also be extended into the first quarter of 2025 due to economic conditions and weak EV demand.

Ford currently produces only two electric models in Europe—the Explorer and Capri—and their sales struggle to compete with brands like Volkswagen. In recent years, Ford has suffered heavy losses in Europe's passenger car market. The company emphasized that Europe's transition is intense, facing numerous competitive and regulatory challenges. These tough actions are deemed crucial to ensuring Ford's future competitiveness in Europe. In a letter to the German government, the vice chairman and CFO also pointed out insufficient policy support for EV development in Europe and called for joint efforts to improve market conditions.