Big losses
“The company has suffered large losses in recent years due to the automotive industry’s transition to electric cars and due to new competition,” the company wrote in a statement on Wednesday.
Ford intends to eliminate jobs by 2027, mainly in Germany (3 thousand) and Great Britain (800). This number is 14 percent. all employees employed by the company in Europe.
In September this year Ford car sales in Europe fell by 17.9 percent, while the automotive industry recorded an almost three times smaller decline – 6.1 percent. – pointed out the Financial Times.
Ford pressured Germany regarding investments
Recently, Ford called on the German government to increasing investments in infrastructure for charging electric cars and subsidies for the purchase of e-cars. Germany ended the subsidy program in December 2023, and in the first nine months of 2024, sales of “electrics” dropped by 28.6%.
“In Europe and Germany, we lack (…) a clear policy to develop e-mobility, including: public investment in infrastructure and significant incentives (for buyers) (…)” wrote Ford Chief Financial Officer John Lawler in a letter to the German government.
Another signal of the weakening automotive industry
The company’s decision is another signal of the weakening of the automotive industry in the EU, which is responsible for 7%. jobs in the Community. At the end of October the group Volkswagen announced plans to close at least three factories in Germany and lay off tens of thousands of workers. Plans to reduce employment in the EU also include, among others: Stellantis (Citroen, Peugeot, Fiat) and Audi.
In October, the EU imposed new tariffs on electric cars produced in Chinato protect the domestic market against unfair competition. Their amount ranges from 7.8%. and 35.3 percent and are imposed in addition to the 10% tariffs already in force in the EU. This decision was made after a year-long investigation, as a result of which the European Commission concluded that China subsidizes the production of electric cars, thanks to which they can sell them at artificially low prices. (PAP)
