The Ford Motor Co. will reduce its workforce by upwards of 4,000 across Europe and the U.K. by the end of 2027, the manufacturer announced Wednesday, citing headwinds generated from the economy, pressure from increased competition and weaker than expected sales of electric vehicles (EVs) for the dim forecast.
Most of the job cuts would come in Germany and would be carried out in consultation with employee representatives, AP reports.
The company also plans to reduce working time for workers at its Cologne, Germany plant where it makes the Capri and Explorer electric vehicles.
Dave Johnston, Ford’s European vice president for transformation and partnerships, said in a statement that “it is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”
The company said that “the global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility.” The statement continued:
The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles.
The AP report notes European automakers must sell enough electric vehicles to meet new, lower limits for fleet average carbon dioxide emissions in 2025.
EV sales have lagged as consumers weary of inflation have held back on spending and after major car market Germany dropped government purchase incentives for the type.
European Automobile Manufacturers’ Association has called for a speedier review of lower C02 limits slated for 2026.
As Breitbart News reported, sales of EVs continue to defy the combined urging of green lobbyists and government diktat with just a quarter making up new purchases for 2023, UK data reveals.
The consumer rejection of EVs is a challenge to the electric car market and government goals to move towards net zero carbon emissions by 2050.
Aside from a lack of electric charging stations and consumer nervousness over reliability, the unit cost of EVs coupled with rapid depreciation remain among the prime reasons consumers are giving for sticking to petrol-powered cars.