Ford to Cut 800 Jobs Amid Weak Demand for Electric Vehicles

Ford has announced plans to cut 800 jobs in the UK over the next three years as part of a major restructuring effort. This decision is part of a broader initiative that will eliminate 4,000 positions across Europe.

The company cited tough market conditions, including intense competition and weak demand for electric vehicles, as the main reasons for the cuts. However, the job reductions will not affect Ford’s manufacturing sites in Dagenham and Halewood or its logistics base in Southampton. Ford hopes to achieve most of the job reductions through voluntary redundancies.

Lisa Brankin, managing director of Ford of Britain and Ireland, expressed regret over the decision, stating, “This is not something anyone wants to do, and I appreciate the significant impact it will have on our employees.”

Ford currently employs 5,300 people in the UK, and the government has requested that the company share its full plans in order to help mitigate the impact.

The cuts, which will account for 15% of Ford’s workforce, will mainly affect administrative and product development roles. While Ford’s Dagenham and Halewood factories remain protected, six other sites across the UK, including a major research and development center in Dunton, Essex, and a parts distribution center in Daventry, could be affected.

This restructuring follows a round of job cuts in March 2023 when Ford announced the loss of 1,300 jobs, primarily at its Dunton site. The new cuts come at a time when European car manufacturers, including Volkswagen, Mercedes Benz, and BMW, are facing mounting pressures from high energy costs, increased competition from Chinese manufacturers, and weaker-than-expected demand for electric vehicles.

As the automotive industry struggles with these challenges, Ford is also navigating its shift toward a more upmarket position, moving away from mass manufacturing of affordable vehicles like the Fiesta, which was discontinued last year.

In addition to the UK cuts, Ford plans to eliminate 2,900 jobs in Germany and 300 more across other European countries. Meanwhile, the UK government faces mounting pressure from the car industry over its Zero Emission Vehicle (ZEV) Mandate, which requires car manufacturers to ensure that at least 22% of cars sold are zero-emission by this year, with that percentage rising to 80% by 2030.

Some manufacturers argue that the pace of the ZEV Mandate is too rapid and that demand for electric vehicles is not yet sufficient to meet these targets, leading to unsustainable discounts. Calls are being made for the government to relax the quotas or provide greater incentives for electric vehicle purchases, as well as assurances that adequate charging infrastructure will be in place.

However, Vicky Read, CEO of the charging firm Charge UK, believes that weakening the mandate would be a mistake. “The government must hold its nerve and support policies that are clearly working,” she said.

A government spokesperson confirmed their commitment to working closely with the industry to ensure the success of the 2030 transition deadline for electric vehicles.