According to Germany’s largest union, Ford intends to reduce 3,200 jobs in Europe as it seeks to cut costs and shift to electric cars.
IG Metall stated that most of the 2,500 product development jobs and 700 administrative positions the automaker wants to eliminate are in Germany.
According to the Financial Times, the union represents 2.2 million members from the metal, electric, iron, and steel industries.
Workers at the Cologne site which employs approximately 14,000 people were informed on Monday of the plans.
“If negotiations between management and the works council fail to ensure the future for workers, we will join them in the process,” IG Metall stated. “We won’t hesitate to take measures that could have serious consequences for the company in Germany and Europe.
As it seeks to focus on electrified vehicles, the US carmaker has been reducing European jobs for many years.
Jim Farley, the company’s chief executive, stated in November that it took 40% less labor to build an electric car than a traditional petrol vehicle.
Ford employs approximately 7,000 people in the UK at its Dagenham plant, east London, that builds diesel engines, as well as at a Halewood gearbox plant, Merseyside.
In September 2020, the company’s engine plant at Bridgend, Wales was shut down, resulting in the loss of 1,700 jobs.
Ford stated in a statement that it did not comment on speculations about a restructuring of Ford Europe. Ford is committed to its European plans for an all-electric vehicle portfolio and is currently moving forward with these plans.
“All new Ford passenger cars in Europe by 2030 will be electric. All new Ford Pro commercial vehicles by 2035 will also be electric by 2030. This transformation will require significant changes in how we develop, build, and sell Ford vehicles. It will also impact the organisational structure, talent, and skills that we will need in future.
“More information will be shared after our plans are finalized and we have notified our employees first.”