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Source: Autocar

Ford to cut 3200 European jobs, warns German union

January 24th, 2023

ford badge detail Ford CEO Jim Farley said in 2022 that "we absolutely have too many people in certain places" IG Metall claims that Ford plans to move some product-development work from Europe to the US

Ford will cut up to 3200 jobs across Europe as it shifts development work to the US, according to German trade unionIG Metall.

The American firm plans to drop up to 2500 staff in product development and up to 700 in administration, affecting most German plants plus Belgium and the UK, the union said.

It warned that it would take action to disrupt production across Europe if the decision weren'treversed.

Ford said in a statement provided to Autocar: "We have no comment on the current speculation about a possible restructuring at Ford in Europe.

"Ford remains committed and is currently accelerating its plans to build an all-electric portfolio of vehicles in Europe.

"By 2030, all new passenger cars sold by Ford in the EU will be electric, and by 2035 all new Ford Pro commercial vehicles will be electric. This transformation requires significant change in the way we develop, build and sell Ford vehiclesand will impact our organisational structure, talent and skills we will need in the future.

"More details will be shared once our plans are final and we have informed our employees first."

Ford has been slimming its global workforce in a push to slash costs and "insource" amid the transition to EVs.

"We absolutely have too many people in certain places," CEO Jim Farley told Adam Jonas of investment bank Morgan Stanley last July. That August, Ford axed 3000 jobs across North America and India.

Insourcing extends beyond labour.Ford last year signed numerous supply deals for raw battery materials with mining firms including Compass Minerals, Ioneer and Rio Tinto.

Currently, Ford sells only two EVs in Europe: the Mustang Mach-E SUVand the E-Transit van. However, it's set to ramp up its provision significantly in the coming yearsas it gears up to end ICE vehicle sales in the regionfrom 2035.

These include a mass-market crossover built on the Volkswagen Group's MEB platform, arriving later this year, as well as the E-Transit Custom, an electric version of the UK's best-selling van.

The formerwas cited by Martin Sander, boss of Ford's Model E electric division, as the reason for the Ford Fiesta's cancellation.

Sander told Autocar in December: "There comes the point where we need the space for construction, because we're turning the Fiesta plant [in Cologne, Germany] into a fully battery-electric plant. This is why we had to make a decision that we have to stop Fiesta production."