Ford Invests $4.8 Billion in Europe to Combat Debt and Job Cuts

Ford is investing $4.8 billion in Europe to restructure amid rising competition from Chinese EV brands, while cutting 4,000 jobs by 2027

Agencias

March 13, 2025
Updated: March 13, 2025 at 1:03 PM

Ford Invests $4.8 Billion in Europe to Combat Debt and Job Cuts

Ford Motor Company is pouring 4.4 billion euros ($4.8 billion) into its European operations as part of a strategic overhaul aimed at addressing significant financial challenges and enhancing competitiveness in a rapidly changing automotive landscape.

This investment will assist in significantly reducing the 5.8 billion euros ($6.3 billion) debt held by its German subsidiary, Ford-werke GmbH, and is part of a broader plan to restructure the company amidst increasing pressure from emerging competitors, particularly Chinese electric vehicle (EV) brands.

The automaker announced plans to cut 4,000 jobs in Europe by 2027, a move attributed to lower-than-expected demand and the ongoing influx of more affordable EVs from Chinese manufacturers like BYD and SAIC.

Ford will inject up to $4.8 billion into its struggling German operations. The American auto giant said recapitalizing its German operations will help support business transformation in Europe https://t.co/DdZdfilDeq pic.twitter.com/JANTiDkCIA
— Reuters (@Reuters) March 10, 2025

Chinese brands recently capturing an increasing share of the European market

The competitive landscape is shifting, with Chinese brands recently capturing an increasing share of the European market, which rose to 3.7% as of January 2025, surpassing Ford’s own vehicle registration figures.

Vice Chairman John Lawler emphasized the necessity for a supportive political framework in Europe that aligns EV adoption efforts with consumer demands.

He noted that the company needs to “simplify our structures, reduce costs, and increase efficiency” to maintain a foothold in the market.

The German arm, Ford-Werke, will continue its strategic transformation initiatives, focusing on reducing costs in Europe and increasing competitiveness, Ford said. https://t.co/tjDbXxGspn pic.twitter.com/A4Zpft3rur
— Automotive News (@Automotive_News) March 10, 2025

Alongside cutting jobs, Ford is investing heavily in modernizing its facilities, including a significant $2 billion investment in upgrading the Cologne manufacturing plant to produce new electric models such as the electric Explorer and Capri.

With legacy automakers like Volkswagen also facing similar challenges, the industry is in a period of seismic shifts as established brands scramble to catch up with the aggressive expansion of Chinese EV manufacturers.

As Ford implements its transformation plan, the question remains: can the automaker reclaim its competitiveness in a landscape rapidly evolving under the weight of innovation and market demands?