"Ford Motor Co. ( NYSE: F) cut 1,000 workers in Germany because of slow electric vehicle (EV) sales. It is part of a layoff of 2,900 workers. This happens as other large legacy car manufacturers up their game in the region in the hope of gaining EV market share from Tesla and emerging Chinese EV manufacturers. Ford has decided not to follow but rather signal a retreat."
"Ford's logic is partly that it expected a third of European sales would be EVs. Based on registrations, that number this year will be about 20%. The trend is like the one in the United States, but unlike China. Ford EVs globally are not close to meeting the expectations articulated three years ago. Its EV sales in China are barely a part of its global EV program."
Ford reduced its German workforce by 1,000 as part of a 2,900-worker layoff driven by weak EV demand. The company had expected one-third of European sales to be electric, but registrations this year point to roughly 20%. Ford's global EV rollout has underperformed, with minimal contribution from China, leaving the U.S. and smaller markets for growth. The company projects a $5 billion EV loss this year and is cutting costs to reassure investors. Strong gasoline-powered sales provide short-term financial respite. Competitors like Volkswagen and BMW continue to increase EV investment despite the risk.
Read at 24/7 Wall St.
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