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Ford announced yesterday it’s slashing 4,000 jobs in Europe as the automaker faces an uphill battle with EV sales. This the latest in a string of automaker announcements about layoffs which have included Nissan, Stellantis, Volkswagen, and others as the global automotive market is shifting yet again.
Vandal cuts down a prolific speed enforcement camera in Canada.
According to Reuters, the Blue Oval is blaming this round of layoffs, most of which will take place in Germany, on a lack of demand for electric cars and governments not doing enough to support the expansion of the EV market. The layoffs won’t be immediate, some taking as long as the end of 2027.
It wasn’t that long ago Ford and other automakers were openly mocking competitors like Toyota who weren’t declaring themselves as going “all in” on EVs. My how the turn tables.
The market didn’t seem to like this move by Ford, with shares of the automaker’s stock dropping 1.8% on Wednesday. It’s also not great news for Germans, many of whom work for the automotive industry, as VW and others say they’re also looking at slashing jobs in the country.
Reuters rightly pointed out that Ford has been grappling with some serious issues lately, thanks to some runaway costs with big problems from warranty issues, quality control, recalls, parts suppliers, and more.
Putting a substantial number of resources into EV development and manufacturing seems to have only multiplied the automaker’s problems. We really don’t want to see Ford fail, and we’re not saying it will, but a couple of years ago the Blue Oval, GM, and others were so myopic in their push for EVs this seems like a reaping what you sow type of moment.
Ultimately, these moves affect families as many times the ones who get laid off are assembly line workers. We wouldn’t be surprised to see more layoffs from other automakers in the near future as this market shift continues.
Image via Ford
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