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Ford Motor Company (NYSE: F) announced today its restructuring plans to create a badly needed more “cost-competitive structure.” The main focus is the health of Ford’s passenger vehicle business in Europe, where it incurred significant losses for years. Ford is also lagging in the European shift to electrified vehicles, and new competition – especially Chinese – has been highly disruptive. Through Q3 of 2024, Ford sales are down ~18% in Europe.
“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” said Dave Johnston, Ford’s European vice president for Transformation and Partnerships.
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“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe,” Johnston said. European layoffs should occur by the end of 2027. This depends of course on union discussions about ~2900 job cuts in Cologne, Germany and~ 800 in Britain.
Ford is not alone in Europe with this EU-wide problem – BMW, Daimler and Mercedes-Benz, GM, Nissan, Stellantis and Volkswagen Group, among others, are scrambling to cut costs and adjust production plans because of the ongoing Chinese EV trade wars. The German economy – the longtime largest in Europe is collapsing.
In Europe – and elsewhere – CO2 regulations and consumer demand for electrified vehicles are not synchronized. The incoming Trump mis-administration in the U.S. is compounding the problem for global automakers. (read AutoInformed.com on: Trump Presidency Effects on Auto Industry – All Bad?, Chinese Trade Wars – EU Adds High Tariffs on EV Imports, X Marks Labor Sore Spot – IndustriALL Against Musk, Trump, Ford to Restructure European Business Once Again; Ford to Sell 600k EVs Annually in Europe by 2026?)
Ford recently issued an urgent call to action for industry, policymakers, trade unions, and social partners in Europe to work together for a successful industry transformation. In a letter to the German government, John Lawler, vice chairman and chief financial officer of Ford Motor Company, reiterated Ford’s commitment to Europe and to the 2035 emission targets but stressed the need for a joint commitment by all stakeholders to improving market conditions and ensuring the industry’s future success.
“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler said.
Thus far nothing concrete has happened…
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Large European Job Cuts Coming at Ford, Again
Click for more.
Ford Motor Company (NYSE: F) announced today its restructuring plans to create a badly needed more “cost-competitive structure.” The main focus is the health of Ford’s passenger vehicle business in Europe, where it incurred significant losses for years. Ford is also lagging in the European shift to electrified vehicles, and new competition – especially Chinese – has been highly disruptive. Through Q3 of 2024, Ford sales are down ~18% in Europe.
“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” said Dave Johnston, Ford’s European vice president for Transformation and Partnerships.
Click to enlarge.
“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe,” Johnston said. European layoffs should occur by the end of 2027. This depends of course on union discussions about ~2900 job cuts in Cologne, Germany and~ 800 in Britain.
Ford is not alone in Europe with this EU-wide problem – BMW, Daimler and Mercedes-Benz, GM, Nissan, Stellantis and Volkswagen Group, among others, are scrambling to cut costs and adjust production plans because of the ongoing Chinese EV trade wars. The German economy – the longtime largest in Europe is collapsing.
In Europe – and elsewhere – CO2 regulations and consumer demand for electrified vehicles are not synchronized. The incoming Trump mis-administration in the U.S. is compounding the problem for global automakers. (read AutoInformed.com on: Trump Presidency Effects on Auto Industry – All Bad?, Chinese Trade Wars – EU Adds High Tariffs on EV Imports, X Marks Labor Sore Spot – IndustriALL Against Musk, Trump, Ford to Restructure European Business Once Again; Ford to Sell 600k EVs Annually in Europe by 2026?)
Ford recently issued an urgent call to action for industry, policymakers, trade unions, and social partners in Europe to work together for a successful industry transformation. In a letter to the German government, John Lawler, vice chairman and chief financial officer of Ford Motor Company, reiterated Ford’s commitment to Europe and to the 2035 emission targets but stressed the need for a joint commitment by all stakeholders to improving market conditions and ensuring the industry’s future success.
“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler said.
Thus far nothing concrete has happened…
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.