Ford's European Restructuring: A Tough Road Ahead

Ford plans to cut 14% of its European workforce, citing low demand for electric vehicles and competition from Chinese rivals. The majority of the 4,000 job cuts will happen in Germany and Britain, as Ford aims to slash costs amidst economic challenges, pending discussions with unions.

Ford announced its decision to cut approximately 14% of its European workforce, blaming a sluggish electric vehicle (EV) market and stiff competition from subsidized Chinese companies for its financial woes. The job cuts, impacting 4,000 employees, will predominantly affect Germany and Britain, according to the automaker.

The announcement saw Ford's shares drop by 1.8%, with Volkswagen in Germany, threatening similar cuts. As Ford struggles with high operating costs and quality issues in the U.S., its European division faces growing challenges, partially due to trade tensions with China and the fallout from Trump's election win.

Ford's European vice president highlighted the urgent need for restructuring to counterweigh weaker-than-expected EV demand. While German unions demand dialogue, Ford pushes for clearer policy support from the German government, criticizing a lack of incentives and infrastructure for e-mobility.

(With inputs from agencies.)