The company said it plans to employ around 2,300 people at its plants in Cologne and Aachen, Germany, 1,300 in the UK and 200 in the rest of Europe, and intends to achieve the cuts through a voluntary programme. added.
Ford plans to cut 3,800 product development and management jobs in Europe over the next three years, the company said Tuesday, citing rising costs and the need for leaner structures to shift production to electric vehicles. mentioned gender.
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The company said it plans to employ around 2,300 people at its plants in Cologne and Aachen, Germany, 1,300 in the UK and 200 in the rest of Europe, and intends to achieve the cuts through a voluntary programme. added.
The news hit unions that announced a worst-case scenario in late January that would cut 2,500 jobs in product development and another 700 in administration in Europe.
In a statement, Ford said the cuts were necessary to “revitalize our business in Europe.”
The automaker hinted at further cost cutting in its early February earnings call, with chief financial officer John Lawler saying it was “very aggressive” in cutting costs in manufacturing and supply chain operations.
Lawler said at the time that European engineers were 25-30% less productive than they should have been.
Martin Sander, head of passenger electric vehicles (EVs) in Europe and head of Ford Germany, said at a press conference that the US group has around 3,400 engineers in the region, It said it would build on core technology provided by its US counterparts and adapt it to its European customers.
“There is a lot less work to do with the drivetrain moving from the combustion engine. We are moving into a world where there is less engineering work required and fewer global platforms. That’s why,” Sander said.
Sander added that nothing has changed in the automaker’s electrification strategy and that it continues to implement its goal of offering all-electric vehicles in Europe by 2035.
Ford plans to launch its first electric vehicle in Europe built on Volkswagen’s MEB platform in Cologne later this year, and is considering bringing the Ford platform to Europe, possibly at a factory in Valencia. said Sander.
“We are preparing our organization to compete and win in a region facing unprecedented economic and geopolitical headwinds,” he said.
Ford’s European staff last saw a wave of job cuts in 2019 and 2020. as the automaker pursued his 6% operating margin in the region. That target was thrown off course by the pandemic, and his first nine-month European pre-tax margin in 2022 is just 2.2% of sales.