Ford is struggling to stay afloat in Europe. The company is restructuring its business overseas with plans to drastically reduce its workforce. With slowing orders and weak demand for its EVs, many doubt Ford’s future in the region. A new survey underlines “how strong the doubts about Ford’s future viability in the European car market” are.
Last month, Ford announced plans to cut another 4,000 jobs in Europe through 2027. The relief is one component of the company’s restructuring plans in the region.
Ford has suffered “significant losses” in recent years in Europe, while the “highly disruptive” market is turning to electric. The U. S. automaker has attributed the job shortage to lower-than-expected demand for electric vehicles for the economy.
Ford said the planned cuts will mainly affect Germany, while other European markets will see “minimal reductions. “
According to a new survey, skepticism about Ford’s long-term in Europe is growing. Civey’s study in Berlin on the automotive sector shows that almost a fraction (45%) of respondents expect poor results. Only 5% were “quite optimistic”, while 37% were undecided.
“The effects of the survey underline how strong doubts are about the long -term viability of Ford in the European automotive market,” said Christian Riedl, success manager of the main client of Civey.
Riedl said the widespread skepticism is partly due to Ford’s electric vehicle strategy, or lack thereof. The Civey expert added: “Especially when it comes to electromobility and innovation, many expect Ford to take transparent steps to position itself for the future. “
According to Riedl, the large number of insecure people “offers the logo the opportunity to position itself. » But this will require “a compelling vision and visual progress. ”
After the first Capri EV model left the production line at its neighborhood plant in July, Ford is already slowing down the production. The company is cutting the production of its two styles of electric vehicles on the MEB platform in Volkswagen, Electric Explorer and Capri.
Earlier this month, Ford presented the completely electric edition of its best-selling vehicle in Europe, the Puma Gen-e, in an attempt to stimulate demand.
Ford has suffered “significant losses” in recent years in Europe as the “highly disruptive” market changes to electricity. The US car manufacturer. Uu. Flame task cuts met for that decrease that electric cars and an economy weakened.
The European market is moving to electric vehicles, but there is a decrease in the expected call for electric vehicles. Should it read “less than call expectation for Ford’s EVs”? There is a European automotive market. More cars purchased are electric vehicles. How does this sign a call under which electric vehicles? Someone is helping me.
Ford is facing stiff competition from Chinese EV makers like BYD, which continues to gain ground. A recent Bloomberg study pointed out BYD is quickly closing in on Ford in global deliveries. The Chinese EV leader could even surpass the American automaker by the end of the year.
BYD’s cheapest EV, the Seagull, was the best-selling vehicle (including gas-powered cars) in China again last month, beating out Tesla’s Model Y.
With a wave of new low-cost EVs arriving in China, BYD and other EV makers are looking overseas for growth. The influx of Chinese electric cars is pressuring global auto leaders to take drastic measures.
A new Nikkei report released Tuesday claims that Honda and Nissan are moving closer to a merger of electric vehicles for the transition. Could Ford partner with any other European partners or expand its ties with VW?Let us know what you think in the comments below.
Peter Johnson covers the transformation step by step from the automotive industry to electric vehicles. He is an experienced investor, monetary writer and enthusiast of electric vehicles. His enthusiasm for electric vehicles, basically Tesla, is one of the main reasons why he pursues an investment race if he does not tell him about his new discoveries in 10K, he can locate it by enjoying the outdoors or exercise.