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Reductions amount to about 14% of carmaker’s local workforce
Vice chairman says Europe, Germany lack clear EV policy agenda
A Ford dealership in East Peoria, Illinois.
By William Wilkes and Jamie Nimmo
November 20, 2024 at 1:30 PM UTC
Ford Motor Co. will look to eliminate another 4,000 positions in Europe, further retrenching from a region where the transition to electric vehicles is losing traction industrywide.
The reductions — which amount to about 14% of Ford Europe’s workforce — will primarily hit operations in Germany and the UK by the end of 2027, pending consultations with unions and governments. The automaker also announced Wednesday it will reduce production of Explorer and Capri EV models at its complex in Cologne, Germany.
Ford vowed in early 2021 to drastically overhaul its business in Europe, saying it would go almost completely electric by the end of the decade. That transformation hasn’t been going to plan, with the company announcing early last year that it would slash 3,800 jobs. Peers including Volkswagen AG and Stellantis NV have issued profit warnings in recent months, citing the broad slowdown in vehicle sales and governments pulling support for EV purchases.
“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility,” John Lawler, Ford’s vice chairman and chief financial officer, said in a statement. He called for more public investment in charging infrastructure, meaningful EV incentives and greater flexibility in CO2 emissions-reduction targets, which the EU and UK are making more stringent next year.
Ford Lowers Profit Expectation Under Pressure From EV Losses
Plug-in unit had $1.2 billion loss during third quarter
Carmaker sees progress in warranty costs after action by CEO
By Keith Naughton
October 28, 2024 at 8:12 PM UTC
Updated on October 28, 2024 at 8:29 PM UTC
Ford Motor Co. said full-year earnings would be at the low end of its forecast as the carmaker struggles to cut costs and overhaul its electric vehicle strategy in the face of slowing EV demand.
Adjusted earnings before interest and taxes this year will be about $10 billion, down from a previous outlook for as much as $12 billion, the company said Monday. Analysts had expected $10.6 billion.
Excluding some items, profit in the third quarter was 49 cents a share, matching the average of analyst estimates compiled by Bloomberg.
Ford’s shares fell 4.6% as of 4:29 p.m. after regular trading in New York, on pace to extend this year’s 7% slump.
The lower full-year target comes as Ford said it lost $1.2 billion in its electric vehicle business in the third quarter, which it said is facing pricing pressure. Chief Executive Officer Jim Farley has said the EV unit is “the main drag on the whole company.” Ford’s cross-town rival General Motors Co. last week raised its 2024 profit projection for the third time this year.
In July, Ford’s shares went into a tailspin after the automaker reported a surge in warranty costs that caused it to fall short of profit estimates. Ford said it reduced warranty expenses in the third quarter, while benefiting from higher pricing on its vehicles.
Farley has taken drastic action to remedy the repair woes, even forgoing near-term profit by holding thousands of new models in parking lots around Detroit for extra quality checks.
Ford is also is scaling back its EV investments as mainstream buyers balk at pricey battery powered models and fret about a spotty charging infrastructure. In August, Farley pulled the plug on an electric three-row sport utility vehicle the company had in the works.
Reductions amount to about 14% of carmaker’s local workforce
Vice chairman says Europe, Germany lack clear EV policy agenda
A Ford dealership in East Peoria, Illinois.
By William Wilkes and Jamie Nimmo
November 20, 2024 at 1:30 PM UTC
Ford Motor Co. will look to eliminate another 4,000 positions in Europe, further retrenching from a region where the transition to electric vehicles is losing traction industrywide.
The reductions — which amount to about 14% of Ford Europe’s workforce — will primarily hit operations in Germany and the UK by the end of 2027, pending consultations with unions and governments. The automaker also announced Wednesday it will reduce production of Explorer and Capri EV models at its complex in Cologne, Germany.
Ford vowed in early 2021 to drastically overhaul its business in Europe, saying it would go almost completely electric by the end of the decade. That transformation hasn’t been going to plan, with the company announcing early last year that it would slash 3,800 jobs. Peers including Volkswagen AG and Stellantis NV have issued profit warnings in recent months, citing the broad slowdown in vehicle sales and governments pulling support for EV purchases.
“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility,” John Lawler, Ford’s vice chairman and chief financial officer, said in a statement. He called for more public investment in charging infrastructure, meaningful EV incentives and greater flexibility in CO2 emissions-reduction targets, which the EU and UK are making more stringent next year.
Ford Lowers Profit Expectation Under Pressure From EV Losses
Plug-in unit had $1.2 billion loss during third quarter
Carmaker sees progress in warranty costs after action by CEO
By Keith Naughton
October 28, 2024 at 8:12 PM UTC
Updated on October 28, 2024 at 8:29 PM UTC
Ford Motor Co. said full-year earnings would be at the low end of its forecast as the carmaker struggles to cut costs and overhaul its electric vehicle strategy in the face of slowing EV demand.
Adjusted earnings before interest and taxes this year will be about $10 billion, down from a previous outlook for as much as $12 billion, the company said Monday. Analysts had expected $10.6 billion.
Excluding some items, profit in the third quarter was 49 cents a share, matching the average of analyst estimates compiled by Bloomberg.
Ford’s shares fell 4.6% as of 4:29 p.m. after regular trading in New York, on pace to extend this year’s 7% slump.
The lower full-year target comes as Ford said it lost $1.2 billion in its electric vehicle business in the third quarter, which it said is facing pricing pressure. Chief Executive Officer Jim Farley has said the EV unit is “the main drag on the whole company.” Ford’s cross-town rival General Motors Co. last week raised its 2024 profit projection for the third time this year.
In July, Ford’s shares went into a tailspin after the automaker reported a surge in warranty costs that caused it to fall short of profit estimates. Ford said it reduced warranty expenses in the third quarter, while benefiting from higher pricing on its vehicles.
Farley has taken drastic action to remedy the repair woes, even forgoing near-term profit by holding thousands of new models in parking lots around Detroit for extra quality checks.
Ford is also is scaling back its EV investments as mainstream buyers balk at pricey battery powered models and fret about a spotty charging infrastructure. In August, Farley pulled the plug on an electric three-row sport utility vehicle the company had in the works.
