Ford Cutting European Jobs, Starting With Germany

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Car giant Ford Motor Company (NYSE:F) (Dearborn, Michigan) is set to cut 3,200 jobs in Germany in what is seen as the start of a wider cull as the company prepares to shift toward electric vehicles (EVs).

Germany's largest union, IG Metall, announced that Ford had internally informed its intentions to cut up to 3,200 jobs in Germany with more to follow across other European locations. IG Metall, which represents more than 2.2 million German workers in the automotive, electrical, iron, steel and metals industries, said that up to 2,500 job cuts will go in product development and a further 700 in administration. Ford employs almost 14,000 people at its Cologne site where workers were informed of the plans. The numbers equate to 65% of its Cologne product development team and 20% of its administrative posts. Ford employs 34,000 people in Europe.

"Most recently, there was a major restructuring program that cut almost 6,000 jobs at the German locations," IG Metall stated. "Now the next wave is looming, especially in product development. The management would have left the employees in the dark, but the works council presented the figures it now had to the workforce at an extraordinary works meeting. Ford plans to cut up to 4,000 product development jobs in Europe. Two development and one test center are affected."

Ford has previously announced plans to only sell EVs in Europe from 2030 and warned earlier this month that this will require "structural changes." Industrial Info is tracking a US$2 billion project to convert the existing Cologne plant into an EV plant with the introduction of a new bodyshop and the installation of production and assembly lines and related equipment. The first EV produced there is expected this summer. In contrast, Ford has announced that production of the Ford Fiesta will end at Cologne this summer and production of the Ford Focus will stop at its Saarlouis site in 2025. Ford is aiming to have 50% of its global sales be EVs by 2030, and in November Ford boss Jim Farley told media at a Detroit conference that "it takes 40% less labor to make an electric car, so...we have to insource, so that everyone has a role in this growth."

IG Metall and auto experts have argued that Ford's shifting of all product design and development to the U.S. and Mexico is a mistake. "In order to be successful on the European market, the vehicles would also have to be adapted to European requirements," IG Metall noted. "Ford would have a lot of catching up to do in Europe - the manufacturer's icons are being phased out: the Fiesta this summer, the Focus in 2025. Overall, the model range has been reduced from 14 to four models. And while the domestic competitors can come up with a growing range of electric vehicles and conquer the market, Ford has only two electric vehicles planned for the domestic market so far. Ford didn't even develop these two vehicles alone, they are to be built on a VW platform."

Ford offered no comment on the German cuts and in a statement said: "We have no comment on the current speculation about a possible restructuring at Ford in Europe. Ford remains committed and is currently accelerating its plans to build an all-electric portfolio of vehicles in Europe. By 2030, all new passenger cars sold by Ford in the EU will be electric, and by 2035 all new Ford Pro commercial vehicles will be electric. This transformation requires significant change in the way we develop, build and sell Ford vehicles, and will impact our organizational structure, talent and skills we will need in the future. More details will be shared once our plans are final and we have informed our employees first."

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