Radical job cuts

Redundancies at Ford: Thousands of jobs lost in Europe

Ford is complaining about high losses in the passenger car segment - most of the jobs are now being lost in Cologne.

(Bild: APA/AFP/INA FASSBENDER)

The crisis in the automotive industry does not stop at big names. Now it is hitting the European business of US giant Ford. As was announced on Wednesday, the company has to cut 4000 jobs in Europe - the vast majority of them in Germany.

In order to reduce costs, a whopping 2900 jobs will be cut in Germany by the end of 2027. Most of these will be at the Cologne plant, as the company also announced. A further 800 jobs will be lost in the UK and 300 in other EU countries.

One in four jobs gone
The European headquarters and the production of two electric car models are located in Cologne. According to the works council, Ford currently has around 11,500 jobs in the cathedral city - which means that around one in four Ford jobs could be cut there.

As soon as the tax breaks for e-mobility are abolished in the USA, as Trump has announced, the manufacturer will probably face the complete end.

(Bild: AP ( via APA) Austria Presse Agentur/AP)

According to the company, Ford has made high losses in the passenger car segment in recent years. In this segment, the costs of switching to electric cars are high. The company also referred to electric car competitors and strict CO2 emission targets. From Ford's point of view, such requirements are a stumbling block for the separate business with combustion engines.

German car manufacturers also under enormous pressure
Ford is not alone with its problems. Ultimately, all German car manufacturers are currently under enormous pressure. Demand has collapsed following the discontinuation of state subsidies for electric cars, while the sluggish economy and job fears are also making consumers reluctant to buy.

"Difficult but decisive measures"
Ford manager Marcus Wassenberg said that the company wanted to maintain a strong business in Europe for future generations. "We must therefore implement difficult but decisive measures to ensure Ford's competitiveness in Europe."

The management underlined its appeal to federal politicians to improve market conditions. In Germany and Europe, there was a lack of "a consistent and clear political agenda to promote electromobility", the Ford management complained.

Ford still had just under 20,000 employees in Cologne in 2018
Ford has invested almost 2 billion euros in its Cologne site in 2023 and 2024 in order to be able to produce electric cars. Production of the small combustion-powered Fiesta model was discontinued. Two Ford electric car models are now rolling off the production line in Cologne - the first series-produced passenger car models from Europe.

High expectations not nearly fulfilled
However, the high expectations have not yet been fulfilled to any extent. The management had to reorganize itself when Martin Sander, Head of Germany, surprisingly moved to VW this summer. Other leading managers also turned their backs on Ford.

To solve the problems, Ford is now continuing to shrink. In 2018, the car manufacturer still had just under 20,000 employees in the cathedral city; by the end of 2027, this figure is likely to be less than half.