• US-based carmaker Ford Motors plans to cut 3,200 jobs

    Business
    US-based carmaker Ford Motors plans to cut 3,200 jobs
    Ford fired 3,000 employees, the majority of whom were in the US, in the second half of last year. According to Reuters sources, these actions are followed by layoffs across Europe.

    Digital Desk: Ford Motor, a US-based carmaker, plans to eliminate up to 3,200 jobs across Europe, with German workers taking the worst damage. The company appears to be planning to move some product development work to the United States, according to the German IG Metall union.

    The union vowed to disrupt the automaker across Europe if the changes are enacted.

    Ford fired 3,000 employees, the majority of whom were in the US, in the second half of last year. According to Reuters sources, these actions are followed by layoffs across Europe.

    Without a doubt, we have too many personnel in some regions, Farley told analysts in July after the layoff news surfaced.

    "We have jobs that need to change and we have skills that don't work anymore."

    Automobile manufacturers are under pressure to cut costs because of growing prices for the components used to build batteries for electric vehicles and potential slowdowns in the economies of the United States and Europe. According to experts, this pressure has risen as a result of the EV price war begun by Tesla Inc earlier this month.

    According to IG Metall, the company may remove up to 2,500 roles in product development and up to 700 positions in administration, with German plants suffering the most.

    The intentions were explained to workers at the American automaker's Cologne operation, which employs 3,800 people at a development centre in the Merkenich neighbourhood and approximately 14,000 people overall, at works council meetings on Monday, according to Business Today.

    A representative for Ford in Germany declined to comment, citing a statement issued on Friday in which the firm said it would reserve further judgement until final plans were in place and that structural changes were required for the shift to the manufacturing of electric vehicles (EVs).

    Ford made a $2 billion investment announced earlier this year to enhance production at its Cologne factory in order to create a mainstream all-electric car. Current production at the facility includes the Ford Fiesta's engines and transmissions.

    The manufacturer, which has around 45,000 employees in Europe, is preparing seven new electric vehicles for the area, as well as a battery assembly facility in Germany and a joint venture for the production of nickel cells in Turkey, as part of a substantial EV push on the continent.