Ford lays off thousands of people as industry frets over slow EV sales | Money News

Ford announced plans to cut 4,000 jobs across Europe, including 800 in the UK. This comes as the car industry is pleading with the UK government to waive fines for companies that miss electric vehicle (EV) sales targets.

Nissan has warned that the so-called order, which applies to the sale of zero-emission cars, risks “undermining the business case for car manufacturing in the UK and the viability of thousands of jobs”.

Ford made the announcement hours after announcing the cuts as part of its plan to become more competitive in Europe amid a lack of momentum for its EV future.

Job losses will occur over the next three years, most of which will be seen in Germany, where 2,900 jobs are under threat, it said.

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Most of those affected across Europe will be in management and support functions and product development, he said, adding that some manufacturing jobs will also be hit.

Ford has made it clear that its UK power plants in Dagenham and Halewood will not be affected.

The goal was to achieve all job losses through voluntary means by the end of 2027.

The announcement comes as EV sales across Europe face fierce competition from China, continued pressure on household incomes and concerns among buyers about owning electric vehicles.

Ford said the goal of the restructuring was to “create a more cost-competitive structure and ensure the long-term sustainability of the business” amid lower-than-expected demand for electric products.

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Ford said it is seeking greater partnerships with governments and other organizations to address the challenges it faces in the transition.

Manufacturers face stringent targets to stop selling petrol and diesel-powered vehicles in an effort to tackle climate change.

Bosses will meet UK ministers on Wednesday to discuss gradually strengthening the UK's EV sales targets.

If electric vehicles do not account for a certain percentage of total sales, companies will be subject to fines. This figure will reach 22% in 2024.

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Overall, it is widely expected that this year's target will not be met, and companies argue that skeptical consumers and companies need incentives to make changes.

Despite extensive discounts to aid driver interest, vehicle range and significant holes in the public charging network, the cost of the vehicles themselves is a concern.

British car industry lobby group SMMT, which has highlighted a £2 billion investment this year to cut prices, warned last month that its members could not sustain efforts to boost EV sales indefinitely.

The 2024 rules require manufacturers to ensure that at least 22% of new cars sold are zero-emission vehicles, but the percentage target will increase each year until 2030, when only some hybrid models will be able to avoid the Labor government's ban on diesel and petrol-powered models. . .

Car manufacturers will be fined £15,000 for each zero-emission vehicle sold above the annual percentage target.

SMMT chief executive Mike Hawes said after the meeting: “Today’s discussions with ministers were an important opportunity to reaffirm the UK automotive industry’s commitment to economic growth and Net Zero.

“However, the industry has also made clear concerns about the pace of the EV transition and the negative impact this will have on the health of the overall market and the attractiveness of the UK as a manufacturing location.

“A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – financial incentives and assurance that charging networks will be there when needed.

“We will now work urgently with the government to identify the adjustments needed to help industry and government achieve their goals and instill confidence in consumers and other stakeholders who are part of this transition.”

Commenting on Ford's announcement and the industry's challenges, a UK government spokesperson said: “We know this will be a worrying time for Ford UK workers and their families. This is a decision taken across Europe for commercial reasons, but we have asked the company to help mitigate the impact in the UK. Please urgently share your entire plan so this can happen.

“We have had a long-standing partnership with Ford and will continue to work closely together on the future of manufacturing in the UK.

“We will also continue to support industry and consumers to make the transition with more than £300 million announced in the Budget to boost the uptake of electric vehicles and £2 billion to support the transition to domestic manufacturing.”

Guillaume Cartier, Nissan regional president for Africa, the Middle East, India, Europe and Oceania (AMIEO), said: “This order risks undermining the business case for car manufacturing in the UK and the viability of thousands of jobs and billions of pounds. In investment.

“We now need urgent government action by the end of the year to avoid a potentially irreversible impact on the UK’s automotive sector.”

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