Ford eliminating 3800 jobs in Europe; driven by transition to fully electric powertrains
16 February 2023
Ford in Europe announced next steps in the transformation of its business. The actions are intended to align Ford’s product development organization and administrative functions in Europe with a smaller, more focused, and increasingly electric product portfolio.
The plans include the elimination of approximately 3,800 jobs, creating a leaner, more competitive cost structure for Ford in Europe. Ford will now engage in consultation with its social partners across Europe with the intent to achieve the reductions through voluntary separation programs.
By 2025, Ford plans to resize its European engineering footprint, resulting in 2,800 fewer jobs. These changes are driven by the transition to fully electric powertrains and reduced vehicle complexity. Ford will maintain an engineering organization of approximately 3,400 roles in Europe, focused on vehicle design and development, as well as the creation of connected services.
Additionally, a leaner cost structure will be created for Ford’s administrative, marketing, sales and distribution functions in Europe, which includes the elimination of approximately 1,000 positions.
Ford in Europe will continue to invest in the design and development of electric passenger vehicles, meeting consumer demand while at the same time targeting carbon neutrality across its European facilities, logistics and key suppliers by 2035.
Globally Ford is investing more than $50 billion in EVs through 2026; this includes various European manufacturing announcements made in 2022:
In December 2022, Ford announced a further £125 million investment into the Halewood Plant, UK, taking total investment to almost £380 million.
In July 2022, Ford Otosan took over ownership of Ford’s manufacturing operations in Craiova, Romania, boosting electric and commercial vehicle capacity.
In June 2022, Ford announced that the plant in Valencia, Spain, is best positioned to produce passenger vehicles based on a next-generation electric vehicle architecture.
In April 2022, Ford Otosan, Ford’s JV in Türkiye started production of the new E-Transit and production of the all-new Transit and Tourneo Custom including all-electric versions will start this year.
In March 2022, Ford announced a $2-billion investment into the Cologne site, where the first EVs will roll off the production line later this year.
I'm not against BEVs nor PHEVs- I drive a Prius Prime and love it- but it is insanity to simply ban new ICE vehicles in 10 years and to regulate/harass natural gas out of existence, without knowing that the alternatives can adequately serve us.
99% of the voting population has zero understanding of just how much mining these batteries and cars will require, and almost all new rare earth mines are being denied just like always. Good luck putting major transmission lines in anywhere in the USA, and basically the entire electric infrastructure will need to be replaced by systems having 10x the capacity.... just as people's electric bills are skyrocketing.
We are legislating major shortages by choice. All of the 'In 10 years' time constraints are completely arbitrary.
Posted by: The Lurking Jerk | 16 February 2023 at 11:05 AM
Agree; however, Government involvement to set goals is often needed to push corporations in the right direction. And, often unintended consequences are part of the results. Caplistists move in the direction of the largest profit not what's best for the people. Moving in the right direction is the job of a good government; but, a form of due diligence should always be exercised to minimize negative results.
Posted by: Lad | 16 February 2023 at 10:57 PM
What has got me recently is the announcement of vast new orders for aircraft - buy now whilst air transport fuel is, incredibly, zero taxed, and before carbon reduction technlogies are operative.
Then the powers that be will claim it is prohibitively expensive to reduce emissions, due to sunk costs, which they are sinking right now.
Never mind the truly prohibitive effects of global warming, so long as the global airline industry can continue to offer cheap holiday flights, and of course business flights. What's zoom, when you can have a freebie in Vegas?
Posted by: Davemart | 17 February 2023 at 09:10 AM