Ford plans to cut 4,000 jobs – including hundreds in UK

Ford has announced plans to cut 4,000 jobs across Europe – including 800 in the UK.

The car manufacturer said the cuts were needed as part of plans to bolster its competitiveness amid the stuttering drive to an all-electric vehicle (EV) future that has hit sales.

Ford said the cuts would take place over the next three years.

The bulk of the job losses would be in Germany, the company said, with 2,900 roles under threat there.

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Most of those affected across Europe would be in administrative and support functions and product development, it added, with some manufacturing jobs hit too.

Ford was clear that its UK power unit plants at Dagenham and Halewood would not be affected.

It was aiming to achieve all the job losses through voluntary means by the end of 2027.

The announcement was made as EV sales across Europe face strong competition from China, a continued squeeze on household incomes and concerns among buyers around electric car ownership.

Ford said the restructuring aimed to create a “more cost-competitive structure and ensure the long-term sustainability” of the business amid “lower-than-expected demand” for its electric products.

Dave Johnston, Ford’s European vice president for transformation and partnerships, said: “We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come.

“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

Ford said it was seeking a greater partnership with governments and others over the difficulties being encountered in the transformation.

Manufacturers face stiff targets to halt sales of petrol and diesel-powered vehicles under efforts to combat climate change.

Some were meeting the Transport Secretary Louise Haigh on Wednesday to discuss the gradual toughening of rules for EV sales in the UK.

Firms face fines if electric cars fail to make up a percentage of their overall sales – a figure that stands at 22% for 2024.

Collectively, that target is widely tipped to be missed this year and companies argue that sceptical consumers and businesses need incentives to make the change.

Worries include the cost of the vehicles themselves despite widespread discounting to help driver interest, vehicle ranges and significant holes in the public charging network.

The UK car industry lobby group the SMMT, which has highlighted a £2bn investment in price drops this year, warned last month that its members could not sustain their efforts to help drive EV sales indefinitely.

While the rule for 2024 requires manufacturers to ensure that at least 22% of new cars sold are zero emission, the percentage target rises year by year to 2030 when only some hybrid variants will get around the Labour government’s ban on diesel and petrol-powered models.

The carmakers face a fine of £15,000 for each non-zero-emission vehicle sold that exceeds the annual percentage target.

Germany’s car industry accounts for about 5% of its economy.

VW is among the other German manufacturers also making cuts to bolster competitiveness.

A UK government spokesperson said of Ford’s announcement and the industry’s challenges: “We know this will be a concerning time for workers at Ford UK and their families. While this is a Europe-wide decision taken for commercial reasons, we have asked the company to urgently share its full plans so we can help mitigate the impact in the UK.

“We have a longstanding partnership with Ford and will continue to work closely with them on their manufacturing future in the UK.

“We will also continue to support industry and consumers to make the switch, with over £300m announced in the budget to drive uptake of electric vehicles and £2bn to support the transition of domestic manufacturing.”