Ford will eliminate 3,800 jobs in Europe, primarily in Germany and the UK, as it shifts electric vehicles production

The latest indication of the industrial disruption brought on by the global automotive industry’s shift to electric vehicles is Ford Motor Co.’s decision to eliminate approximately 3,800 jobs across Europe. According to Ford’s announcement on Tuesday, approximately 2,300 and 1,300 positions will be eliminated in the UK and Germany over the next three years. The German company IG Metall estimated last month that approximately 3,200 people would lose their jobs.

Ford Motor Company announced on Tuesday that it will eliminate 3,800 jobs in Europe within the next three years to concentrate on the production of electric vehicles and implement a “leaner” organizational structure.

A fifth of Ford’s workforce in the UK will be laid off over the next two years, according to plans announced by the automaker.

The carmaker will eliminate 3,800 jobs across Europe as part of a significant restructuring program.

As it prepares for the transition to electric vehicles and faces an uncertain economic future, Ford is reducing its development staff.

The majority of UK cuts will take place at Dunton, an Essex research facility.

The business intends to eliminate 2,300 production development and administration positions in Germany, 1,300 in the United Kingdom, and 200 elsewhere in Europe. It stated that it would keep roughly 3,400 engineering positions in Europe, with a focus on vehicle design and development and linked service creation.

Ford’s intention to offer an all-electric fleet by 2035 will not be affected by the overhaul. The company anticipates beginning production of its first electric passenger car made in Europe later this year.

These are difficult choices that should not be made lightly. Martin Sander, general manager of Ford Model e in Europe, stated, “I assure them we will be offering them our full support in the coming months. We recognize the uncertainty it creates for our team.”

“We must take broad-based actions and make changes to the way we develop, build, and sell Ford vehicles in order to pave the way for a future that Ford can sustainably profit from in Europe. The talent, skills, and organizational structure that we will require in the future will be affected by this.

Additionally, it is anticipated that several hundred back-office positions across the nation will be eliminated. However, the Halewood, Dagenham, and Daventry production facilities will not be impacted.

After Ford shut down its engine plant in Bridgend less than two years ago, the announcement was made.

Tim Slatter, chairman of Ford of Britain, provided the following explanation: “Here in Europe we’ve got a pretty difficult economic situation, and the outlook is uncertain.”

“Cost of energy, high inflation, higher interest rates, the ongoing war in Ukraine, and so on”

He maintained, however, that was not the only factor. Ford of Europe is getting ready for a significant business shift.

It anticipates producing all-electric vehicles in the region by 2030.

By the same date, two out of three commercial vehicles will be electric or plug-in hybrids.

At the same time, it will try to get away from being seen as a mass-market supplier of inexpensive transportation for everyday use.

Instead, it wants to create a fewer, more exotic lineup of vehicles that make use of evocative brand names, like the Mustang Mach-E and the F-150 Lightning electric pickup truck.

Additionally, it intends to concentrate on its commercial vehicle portfolio, particularly the Transit.

The Mondeo has already been discontinued by it. The final Fiesta will be delivered to Cologne’s production line in June.

There will be no direct replacement for the runabout that was once a best-seller because its manufacturing is no longer considered viable. It is anticipated that the Fiesta name will be lost to history.

However, developing new electric vehicles is a costly process, and Ford intends to invest $50 billion (£41 billion) in this area over the next few years.

It has committed £380 million to turn its gearbox factory in Halewood, Merseyside, into a facility that can produce hundreds of thousands of electric motors annually as part of this plan.

Because electric cars are mechanically quite simple, Ford believes that it will require fewer product development staff as the development of traditional gasoline and diesel vehicles slows down.

Therefore, it believes that it can save money in this area. Europe-wide, 2,800 engineering positions will be eliminated, with the majority in the UK and Germany.

The European head of Ford’s electric vehicle division, Martin Sander, stated, “These are difficult decisions, not taken lightly.”

“I assure them we will be offering them our full support in the coming months,” I said. “We recognize the uncertainty it creates for our team.”