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Released February 27, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Ford Motor Company (NYSE:F) (Dearborn, Michigan) has confirmed plans to cut almost 4,000 jobs in Europe as it shifts away from petrol and diesel engines to electric vehicles (EVs).
The bulk of the job cuts--2,300--will occur in Germany, followed by 1,300 in the U.K. and another 200 from the rest of Europe. Up to 2,800 of those will be from its engineering operations while the remaining 1,000 will come from administrative, marketing, sales and distribution operations. Ford hopes that most of the reductions, which represent one-in-nine of its European workforce, can be achieved through voluntary redundancies.
Germany was facing the possibility of 3,200 job cuts last month, but after negotiations with the main trade union, IG Metall, this was reduced. IG Metall stated: "The downsizing is now being carried out in a socially acceptable manner--through partial retirement and voluntary retirement with high severance payments. We achieved this in 60 hours of negotiations. IG Metall had threatened sensitive measures if management did not give in." For additional information, see January 26, 2023, article - Ford Cutting European Jobs, Starting With Germany.
Ford said that it is trying to transform its business in response to rapidly changing market conditions and a growing field of EV competitors entering the market. It claimed the electric revamp will "revitalize its business in Europe." Ford reaffirmed its strategy to offer an all-electric fleet for passengers and commercial vehicles in Europe by 2035 and revealed that production of its first European-built electric passenger vehicle is set to start later this year. "We are completely reinventing the Ford brand in Europe," said Martin Sander, general manager of Ford Model e in Europe. "Unapologetically American, outstanding design and connected services that will differentiate Ford and delight our customers in Europe. 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."
Industrial Info is tracking four Ford projects in Europe to convert existing plants from making combustion engine vehicles to assembling EVs. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.
The company has been slow off the mark in the European EV sector and has lost ground to leading players like Tesla (NASDAQ:TSLA) (Austin, Texas) , Volkswagen AG (Wolfsburg, Germany) and Fiat. EV sales were very strong in Europe last year, accounting for 23% of total car sales according to data from EV Volumes. Pure EVs or battery EVs grew their share from 10% to 14% of the market while plug-in hybrid EVs stayed at 9%. Germany, the U.K. and the Nordics were the leading markets.
Ford will still have roughly 3,400 engineers in Europe who will adapt core technology developed in the U.S. for the European market. However, the reality is that less engineers are required for EVs compared to combustion engine development. Sander told the media: "There is significantly less work to be done on drivetrains moving out of combustion engines. We are moving into a world with less global platforms where less engineering work is necessary. This is why we have to make the adjustments."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The bulk of the job cuts--2,300--will occur in Germany, followed by 1,300 in the U.K. and another 200 from the rest of Europe. Up to 2,800 of those will be from its engineering operations while the remaining 1,000 will come from administrative, marketing, sales and distribution operations. Ford hopes that most of the reductions, which represent one-in-nine of its European workforce, can be achieved through voluntary redundancies.
Germany was facing the possibility of 3,200 job cuts last month, but after negotiations with the main trade union, IG Metall, this was reduced. IG Metall stated: "The downsizing is now being carried out in a socially acceptable manner--through partial retirement and voluntary retirement with high severance payments. We achieved this in 60 hours of negotiations. IG Metall had threatened sensitive measures if management did not give in." For additional information, see January 26, 2023, article - Ford Cutting European Jobs, Starting With Germany.
Ford said that it is trying to transform its business in response to rapidly changing market conditions and a growing field of EV competitors entering the market. It claimed the electric revamp will "revitalize its business in Europe." Ford reaffirmed its strategy to offer an all-electric fleet for passengers and commercial vehicles in Europe by 2035 and revealed that production of its first European-built electric passenger vehicle is set to start later this year. "We are completely reinventing the Ford brand in Europe," said Martin Sander, general manager of Ford Model e in Europe. "Unapologetically American, outstanding design and connected services that will differentiate Ford and delight our customers in Europe. 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."
Industrial Info is tracking four Ford projects in Europe to convert existing plants from making combustion engine vehicles to assembling EVs. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.
The company has been slow off the mark in the European EV sector and has lost ground to leading players like Tesla (NASDAQ:TSLA) (Austin, Texas) , Volkswagen AG (Wolfsburg, Germany) and Fiat. EV sales were very strong in Europe last year, accounting for 23% of total car sales according to data from EV Volumes. Pure EVs or battery EVs grew their share from 10% to 14% of the market while plug-in hybrid EVs stayed at 9%. Germany, the U.K. and the Nordics were the leading markets.
Ford will still have roughly 3,400 engineers in Europe who will adapt core technology developed in the U.S. for the European market. However, the reality is that less engineers are required for EVs compared to combustion engine development. Sander told the media: "There is significantly less work to be done on drivetrains moving out of combustion engines. We are moving into a world with less global platforms where less engineering work is necessary. This is why we have to make the adjustments."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
