Layoffs: Automobile Major Ford to Cut 3,200 Jobs in Europe; The Union Vows to Fight

Ford Motors

Layoffs: Automobile Major Ford to Cut 3,200 Jobs in Europe; The Union Vows to Fight

Ford Motor Co. ( F.N ) is considering cutting up to 3,200 jobs across Europe and moving some product development roles to the United States, according to Germany’s IG Metall union, as the American automaker continues to cut its workforce in an effort to adapt. A future with electric vehicles.

Germany’s largest union IG Metall, which represents more than 2.2 million workers in the automotive, electrical and metal industries, said on January 23 that it would take action against the carmaker if the job cuts were to continue.

According to analysts, the rising cost of electric vehicle battery materials and a predicted slowdown in the US and European economies have forced auto makers to cut costs.

The pressure has intensified since the EV price war launched by Tesla Inc ( TSLA.O ) earlier this month, analysts added.

The company plans to cut 2,500 jobs, accounting for 65%, in product development and up to 700, accounting for 20% in administrative roles.

The layoffs will reportedly affect German locations the most. Sites in Belgium and the UK may also be affected by job cuts.

Workers at Ford’s Cologne site, which employs about 14,000 workers, including 3,800 at a development center in the Merkenich area, were informed of the plans at a works council meeting on January 23.

When asked, a Ford spokesman in Germany declined to comment on the matter, citing a statement on Friday in which the company said its decision to shift to production of electric vehicles (EVs) required structural changes and would not say more about it. Until the plans are completed.

Ford has been cutting jobs in Europe for years, with the goal of revamping its brand, selling fewer cars and becoming more distinctive in a market that has become saturated with many similar types of electric vehicles.

In early January, Ford announced that it plans to launch new vehicles in association with its old partner German carmaker Volkswagen. Vehicles will rely on their own in-house technology instead of relying on their competitor’s systems.

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