Ford announces 800 jobs to go in UK as electric car sales stall

Ford has announced a three-year plan to cut 800 jobs in the UK amid a broader restructuring effort that will see the loss of 4,000 jobs across Europe. The decision comes in response to harsh market conditions, intense competition, and sluggish demand for electric vehicles.

Despite the job cuts, the company's production sites in Dagenham and Halewood as well as its logistics centre in Southampton will not be impacted. Additionally, it is nearing completion on a new facility intended for electric vehicle motor production in Halewood, safeguarding these factories and the Southampton-based transport operations division from the job cuts.

However, six other sites across the UK could be impacted, including a major research and development centre at Dunton in Essex, where it also has its UK headquarters, and a massive parts distribution centre in Daventry. This marks the second wave of cuts to hit Ford’s operations in Britain in less than two years.

READ MORE: 'My wife died from ovarian cancer - talcum powder was to blame'

READ MORE: Maldon man died after tragically falling from balcony on Turkey holiday with girlfriend

Lisa Brankin, managing director of Ford of Britain and Ireland, expressed their difficult position: "Making this announcement isn’t something that anybody wants to do, and I appreciate it will have a very significant impact on our employees," adding, "It’s not the news anyone wants to hear at any time. So our aim is to try to deliver this through voluntary redundancy."

Employing 5,300 people within the UK, Ford aims to eliminate 15% of its workforce, predominantly targeting administrative and product development roles. The company continues to manufacture diesel engines for vans at its Essex factory and gearboxes in Halewood.

In March 2023, it announced that 1,300 jobs were set to go, a fifth of its workforce, most of them at the Dunton site. The latest announcement comes at a time when car manufacturers across Europe are grappling with challenges.

They face issues such as high energy costs, weaker than expected demand for electric cars and growing competition from Chinese manufacturers. Many of the continent’s biggest names, including Volkswagen, Mercedes Benz and BMW. have seen their profits plummet this year.

Volkswagen is even considering the closure of factories in Germany, a move that would be unprecedented. "The automotive industry is going through a period of massive disruption at the moment," explained Ms Brankin.

"We’ve got unprecedented competition, regulation and lots of economic headwinds" These pressures are hitting Ford at a difficult time. The carmaker is trying to transition away from its past as a mass-manufacturer of cheap "runabouts", and position itself as a more upmarket brand, focused on electric cars.

Last year, it ceased production of the Fiesta after nearly five decades. In addition to the cuts in the UK, Ford will be shedding 2,900 jobs in Germany and another 300 in the rest of Europe.