Monitoring Desk
ISLAMABAD/BERLIN: Ford Motor plans to cut up to 3,200 jobs across Europe and move some product development work to the United States, Germany’s IG Metall union said vowing action to disrupt the carmaker across the Europeon continent if went ahead with the layoff plan.
Rising costs for electric cars battery materials and projected slowdowns in European and US economies are putting pressure on automakers to cut expenses. Analysts said that the EV price war launched by Tesla Inc earlier this month had intensified that pressure.
IG Metall said that the company wants to axe up to 2,500 jobs in product development and up to 700 administrative roles, with German locations most affected.
Workers in the United States. Carmaker’s Cologne site, which workers about 14,000 people and including 3,800 at a development center in the Merkenich area, was informed of the plans at works council meetings on Monday.
Ford spokesperson
A spokesperson for Ford in Germany declined to comment, mentioning a statement on Friday in which it had said that the shift to production of electric vehicles needed structural changes and it would share anything until plans were finalised.
A spokesperson at the automaker’s said that discussions with the German works councils were continuing and that the company needs to be “more competitive” as it transitions to EVs. He did not comment on specific job layoffs.
Last year, Ford announced a $2 billion investment to increase production at its Cologne plant to make an all-electric model for the larger masses. The plant currently produces Ford Fiesta and engines and transmissions.
