Ford axes 800 jobs in the UK due to weak EV demand

Ford is cutting 800 jobs in the UK over the next three years as part of a major restructure, with 4,000 roles being lost across Europe.

The manufacturer says that the changes are needed to create a more cost-competitive structure and ensure the long-term sustainability and growth of its business. 

It blamed the health of Ford’s passenger vehicle business in Europe, where the company has incurred significant losses in recent years, and where the industry’s shift to electrified vehicles and new competition has been highly disruptive.

Due to the weak economic situation and lower-than-expected demand for electric vehicles (EVs), Ford is further adjusting the production program for the new Explorer and Capri. 

This will result in additional ‘short-time’ working days at its Cologne plant in the first quarter of 2025.

However, the cuts will not affect its manufacturing sites in Dagenham and Halewood, or its logistics base in Southampton. Ford said it hoped to make the majority of job cuts in the UK through voluntary redundancy. Ford has 5,300 employees in the UK.

“Ford has been in Europe for more than 100 years,” said Dave Johnston, Ford’s European vice president for transformation and partnerships.  

“We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come. 

“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

Ford has revived its famous Capri name for a new mid-size electric SUV with a coupe-like roofline.

The Polestar 2 rival joins Ford's VW ID4-based Explorer as part of an expanding line-up.

Like the Explorer, the Capri uses VW's MEB platform and shares a platform with the Skoda Enyaq Coupe and VW ID5.

Incentivising the EV market

Ford recently issued an urgent call to action for industry, policymakers, trade unions, and social partners in Europe to work together for a successful industry transformation. 

In a letter to the German government, John Lawler, vice chairman and chief financial officer of Ford Motor Company, reiterated Ford’s commitment to Europe and to the 2035 emission targets but stressed the need for a joint commitment by all stakeholders to improving market conditions and ensuring the industry’s future success.

In the UK, weak retail demand for electric vehicles (EVs) and manufacturer concerns over targets in the Zero Emission Vehicle (ZEV) Mandate, has resulted in ministers meeting carmakers this week in an effort to help the industry adapt.

“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments 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,” said Lawler.

Ford says it remains committed to Europe, with significant investments made over the past four years to transform its operations, retrain employees and build the next generation of electrified vehicles.

This includes a $2 billion investment to transform its Cologne plant in Germany into an EV centre.  

Ford’s vision for its future European business, it says, is defined by a thriving Ford Pro commercial vehicle business.

It vowed to continue to invest in this business, and to expand leadership and support to its business customers in their ambition to lower emissions and improve productivity.  

In terms of passenger vehicles, it wants a successful and profitable business, competing in select segments with “iconic” vehicles that are “distinctively Ford”. 

It says it will offer customers a range of internal combustion engine (ICE), hybrid and fully electric vehicles, while meeting all European regulations.

Last year, Ford announced it was cutting one-in-five jobs in the UK as part of a major restructuring programme across Europe.

The majority of the 1,300 job losses in the UK were felt at Ford’s research site at Dunton in Essex, with 1,000 roles in product development being cut.

Some 300 back-office posts were also expected to be lost in the UK, with some 3,800 jobs are being lost overall in Europe.

Dr Amit Rawal, lecturer in management at Bayes Business School, says Ford, like many large car manufacturers, is facing a range of challenges associated with pressures to develop more environmentally friendly vehicles.

“The firm aims to retain jobs at certain sites, such as Dagenham, which highlights a commitment to changing its product range to electric vehicles despite weak current demand,” he added. “In addition, Ford is aiming to become leaner during periods where lower profits are being made.

“However, one might question if talent loss from product development and administration teams could lead to a loss of innovation capacity. This could pose risks for other product developments in the pipeline for Ford.

“The request from government for more details about its changing workforce structure reflects efforts to reduce the wider socioeconomic impact of job losses.

“Overall, Ford’s job cuts appear to be a long-term strategic pivot. Several related stakeholders to Ford and other car manufacturers are also cutting jobs due to the changing electrical vehicle market.

“The company is clearly a case study of the ever-changing competitive electrical vehicle market which is being heavily impacted by Government policies.”

Johnathan Dudley, partner and head of manufacturing at Crowe, argues that action is not being taken to address the scale and impact of China’s long-term investment in making electric vehicles affordable for its domestic and international consumers.

“UK and EU manufacturers cannot compete and the industry is demanding the Government adopts a more pragmatic approach to offer ‘carrots’ rather than ‘sticks’ to stimulate demand,” he added.

“The Government needs to act to avoid undermining a strategically important industry, which could result in job losses.”