Ford to cut 4,000 jobs in Europe due to ‘mismatch’ between demand and climate regulations

Ford Motor Company says it will reduce its European workforce by 4,000 positions by the end of 2027, with the majority of the positions in Germany.

“The global auto industry continues to experience a period of significant disruption as it transitions to electrified mobility,” the company said Wednesday in announcing the cuts. “The transformation is particularly intense in Europe, where automakers face significant competitive and economic headwinds while also grappling with the mismatch between CO2 emissions regulations and consumer demand for electrified vehicles.”

John Lawler, the U.S. automaker’s vice chairman and chief financial officer, said Europe lacks a clear policy agenda for electric vehicle development, including support for charging infrastructure and meaningful incentives to help consumers switch to gasoline-powered vehicles. Coupled with inflexible emissions compliance targets, Ford had to make adjustments, Lawler said.

The company faces similar problems in the US. In its third-quarter earnings report, Ford reported losses on its power lines of $1.2 billion, bringing its total electric vehicle loss this year to $3.7 billion.

The layoffs in Europe follow Ford’s move to phase out electric vehicles. In April, the company delayed the launch of an electric three-row SUV that was to be produced at the Oakville assembly complex in Ontario, Canada. Then, in June, the company shelved plans to build electric F-150 Lightnings at its Tennessee plant.

In July, Ford announced it would build diesel-powered F-Series Super Duty pickup trucks at a Canadian plant. The company still plans to launch an electric SUV, but the launch date has now been pushed back to 2027.

In a statement announcing the layoffs in Europe, the company said it remained committed to the European market.

“Ford has been present in Europe for over 100 years. We are proud of our new product portfolio for Europe and are committed to building a thriving business in Europe for generations to come,” Dave Johnston, Ford Europe vice president of transformation and partnerships, said in a statement.