Ford Cutting Over 1,000 Jobs in Germany as Company Pivots to EVs
Ford is reportedly preparing to lay off a minimum of 1,000 German employees as it prepares to manufacture two battery-electric models developed under Volkswagen’s MEB platform. The partnership is old news, as is Ford wanting to pivot toward all-electric vehicles. However, everyone seems surprised that the decision would be accompanied by job cuts – despite countless reports having predicted that the global push toward EVs would mean far-fewer automotive jobs in the years to come.
The premise was a major aspect of the Trump administration's decision to soften Corporate Average Fuel Economy (CAFE) standards, which were later undone by an executive order from Joe Biden and countless lawsuits coming out of California. But it was also echoed by numerous automakers who suggested that electrifying their lineup would be a good way to reduce labor costs and streamline production. Though the companies doing so typically maintain that they’ll eventually be supplanted by higher-paying positions requiring more technical expertise. This is also the assumption that the Biden administration is operating under and part of the rationale behind the government’s heavy subsidization of the industry.
Still, everyone certainly acts surprised whenever there’s another round of layoffs.
Based on reporting from the Automotive News Europe sister publication Automobilwoche, Ford’s factory in Cologne, Germany, is about to see its workforce shrink by a “four-digit number.” That means at least 1,000 people.
The facility is currently home to the Fiesta subcompact economy car that used to be sold here in the United States before the Blue Oval decided it would be more profitable to sell large vehicles with broader margins. Moving forward, the facility will be used to produce a pair of battery-electric models utilizing Volkswagen’s MEB architecture. However, nobody seems to have expected that this would be accompanied by sweeping layoffs.
According to the report, Ford will be removing staff from just about every sector of the business – as Cologne also serves as the brand’s regional headquarters. Layoffs are alleged to reach people working in assembly, engine and transmission manufacturing, and also in development, administration, and even sales. German media has suggested that the biggest hit will take place at Ford's technical center in Merkenich – which is near Cologne.
Ford declined to comment on the matter but said the transformation to EVs required "significant change" in the way it manufactures automobiles. "We have no comment on the current speculation about a possible restructuring at Ford in Europe," a spokesperson explained.
A final tally for projected job losses is expected this spring. Though it’s likely to be accompanied by subsequent layoffs throughout Europe as the company shifts toward “software-defined vehicles” using all-electric propulsion.
Ford's passenger lineup in Europe is supposed to become all-electric by 2030 and the automaker expects two-thirds of commercial van sales to be electric or plug-in hybrids within the same time frame.
[Image: Iryna Imago/Shutterstock]
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