Ford is planning to cut roughly 800 jobs across the UK over the next three years as part of a wider European jobs cull.
The car manufacturer said the UK job cuts come as part of plans to axe 4,000 roles overall across Europe by the end of 2027 to slash costs.
It said the cull will primarily affect Germany, where 2,900 roles are under threat, with ‘minimal reductions’ in other European markets.
Those working in administrative and support functions and product development are most likely to be affected by the cuts, with some manufacturing jobs hit too.
The announcement comes as EV sales across Europe are being hit by strong competition from China and growing concerns from buyers around electric car ownership.
Ford currently has 5,300 employees in the UK, meaning 15% of its workforce will be removed in the restructuring plan.
But it was clear that its UK power unit plants at Dagenham and Halewood would not be affected, or logistics base in Southampton.
However, six other sites across the UK – including a major research and development centre at Dunton in Esš eš„ and a giant parts distribution centre in Daventry – could also be affected.
The company said its passenger vehicle business in Europe has ‘incurred significant losses in recent years’, while it added the shift to electric vehicles and new competition in the market has been ‘highly disruptive’.
Lisa Brankin, managing director of Ford of Britain and Ireland, said in a statement: ‘Making this announcement isn’t something that anybody wants to do, and I appreciate it will have a very significant impact on our employees.
‘It’s not the news anyone wants to hear at any time. So our aim is to try to deliver this through voluntary redundancy.’
Ford currently makes diesel engines for vans at its Dagenham factory in Esš eš„ andĀ builds gearboxes in Halewood.
It is also in the final stages of creating a major new facility for producing motors for electric vehicles on the site.
The company has recently been attempting to alter its image from a mass-manufacturer of cheap petrol cars – such as the Fiesta, which it stopped making last year after nearly five decades – to a more more upmarket brand, focused on electric cars.
But they continue to find difficulties in doing this and the latest job cull comes just 20 months after the brand saidĀ 1,300 jobs would be axed.
Ford is not the only car manufacturer to be struggling in the European market – as Volkswagen, Mercedes Benz and BMW have all seen their profits nosedive this year.
The brands are having to deal withĀ high energy costs, weaker than expected demand for electric cars and growing competition from Chinese manufacturers.
In response, Volkswagen is contemplating the unprecedented move of closing factories in Germany.
Dave Johnston, Ford’s European vice president for transformation and partnerships, said: ‘We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come.
‘It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.’
Ford’s announcement comes as minsters meets with car industry experts to discuss rules which could force companies to build more electric vehicles.
A number of manufacturers are struggling to reach the Zero Emission Vehicle (ZEV) Mandate target, introduced last year, which says 22 per cent of cars sold must be classed as zero emission.
This is in spite the fact that there are flexible mechanisms built into the rules which should allow them to avoid fines for the moment.
If manufacturers fail to hit their quotas, they could face fines of up to Ā£15,000 per car.
Despite these issues, the quota is due to rise to 28% next year, and to 33% in 2026 ā being ramped up each year after that to hit 80% by 2030.
Manufacturers insist this is happening too fast, as the demand for electric cars simply isn’t high enough yet, with some asking the Government to water down the quotas and give them more time.
They say the current numbers are forcing them into offering unsustainable discounts in an effort to meet their targets.
Others believe greater taxpayer-funded incentives need to be introduced for electric cars, and to do more to reassure car buyers that enough charging infrastructure will be built.
But Vicky Read, chief executive of charging firm Charge UK, believes a weakening of the mandate would be the wrong move.
She said: ‘The government must hold its nerve and use the meeting to signal support for a policy that is evidently working.’