Ford Motor Co plans to cut up to 3,200 jobs across Europe and move some product development work to the United States, Germany’s IG Metall union said on Monday, vowing action that would disrupt the carmaker across the continent if the cuts go ahead, according to Reuters.
Rising costs for electric vehicle battery materials and projected slowdowns in U.S. and European economies are putting pressure on automakers to cut expenses.
The company wants to axe up to 2,500 jobs in product development and up to 700 in administrative roles, with German locations most affected, IG Metall said.
Workers at the U.S. carmaker’s Cologne site, which employs about 14,000 people – including 3,800 at a development centre in the Merkenich area – were informed of the plans at works council meetings on Monday.
Ford’s spokesperson in Germany declined to comment, referring to a statement on Friday in which it said that the shift to production of electric vehicles (EVs) requires structural changes and it would not say more until plans are finalised.
A spokesperson at the automaker’s headquarters in Michigan said discussions with the German works councils were continuing and that the company needs to be “more competitive” as it transitions to EVs. He would not comment on specific job plans.
The carmaker, which employs about 45,000 people in Europe, is planning seven new electric models in the region, a battery assembly site in Germany and a nickel cell manufacturing joint venture in Turkey as part of a major EV push on the continent.