Leba, Poland – 19th August, 2020: Ford Kuga Plug-in Hybrid parked next to the sea in marina. The Kuga is one of the most popular compact SUV vehicles in Europe.[/caption]
FORD has announced that it will axe hundreds of jobs from its UK sites as part of massive cuts to its European output.
Bosses blamed the “lower than expected demand” for electric cars as they scramble to meet the Government’s legally-binding targets.
Ford is axing 800 UK jobs as part of wider European cuts[/caption]
The firm had already hinted that it would have to slow down production of petrol and diesel models to meet the controversial zero-emission vehicles (ZEV) Mandate.
The Mandate requires that a certain proportion of all manufacturers’ output is zero-emission (usually meaning EVs) each year.
For 2024, the requirement is 22%, rising to 80% by 2030.
That’s ahead of a total ban on the sales of new petrol and diesel cars that same year (although hybrids will be exempt until 2035).
Carmakers can be fined £15,000 for each car that they produce above that limit, which could run into the millions.
Martin Sander, Ford Europe’s EV chief, warned as early as May that the company was struggling to keep pace with the requirement.
He suggested that the firm would make fewer internal combustion models for the UK market, but it now appears that the financial pressure is also motivating it to cut down the workforce here.
The “restructuring” will see a total of 4,000 jobs lost across its UK and EU operations.
Around 800 of these will be in the UK, though Ford would not confirm which of its sites would be affected.
Germany, where Ford made the soon-to-be-discontinued Focus, is also expected to see sizeable cuts.
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.”
This is a developing story and more information will be added as it becomes available
