On Wednesday, November 20, Ford introduced it might reduce about 14% of its European workforce. The legacy automaker cited weak demand for electrical autos (EVs), poor authorities assist, and competitors from Chinese language rivals for job cuts.
Ford acknowledged that about 4,000 jobs can be reduce in Germany and Britain, representing about 2.3% of its complete workforce of 174,000 in Europe. Ford’s announcement got here after different legacy automakers, together with Nissan, Stellantis, and Normal Motors, acknowledged they’d be chopping prices.
All of the automakers chopping prices have cited EV demand as a problem, stating that electrical autos have been too costly for shoppers.
In August, EV gross sales have been down by practically 44% in Europe. EV gross sales have been down by double-digits in main automotive EU automotive markets like Germany, France, and Italy. As an illustration, Germany reported a 68.8% drop in EV gross sales for August.
Germany abruptly ended its EV incentive program in December 2023, which has been cited as a cause for the drop in EV gross sales in 2024. Different European international locations have additionally adopted Germany and ended EV incentive packages.
Automakers from China have additionally grow to be a rising concern for automotive makers looking for to develop market share in Europe. Chinese language automakers often supply decrease costs than their rivals, like Ford or Stellantis. The decrease costs of Chinese language automobiles are difficult to compete with for non-Chinese language automakers.
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