Ford Motor Company announced Wednesday it plans to reduce its European workforce by 4,000 positions by the end of 2027, to create a more “cost-competitive” structure.

The automaker says that it is particularly concerned about the health of its passenger vehicle business in Europe, following “significant losses” in recent years. The region’s shift to electrified vehicles and new competition has been “highly disruptive” for the US company.

Consultations with European social partners are ongoing, but most of the job cuts will be in Germany and the UK. Other European operations will see “minimal reductions,” Ford says in a statement.

On the back of lower-than-expected demand for electric cars and the “weak” economic situation, Ford is further adjusting the production programme for the new Explorer and Capri cars. “This will result in additional short-time working days at our Cologne plant in the first quarter of 2025,” it says without elaborating.

Data from Germany’s Federal Motor Transport Authority shows Ford only sold 45 all-electric Capris and 518 Explorers in October, Kallanish notes.  

Reiterating its commitment to Europe and the 2035 emissions targets, Ford says there needs to be a joint commitment by all stakeholders to improving market conditions and ensuring the industry’s future success. It claims carmakers in Europe are tackling a “misalignment” between CO2 regulations and consumer demand for EVs.

“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investment 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,” says John Lawler, vice chairman and chief financial officer of Ford Motor Company.

It is unclear if the job cuts are primarily around EV production and personnel. Yet, the carmaker says it will work to operate a “successful and profitable” passenger vehicle business offering a range of internal combustion engines, hybrid and fully electric cars.

On the commercial vehicle front, Ford says it will continue to invest to expand its leadership and support customers in their ambitions to lower emissions.