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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…
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…