US automaker Ford plans to eliminate 3,200 jobs in Germany and expressed its concern for the future of the company’s facilities in the continent’s largest economy. The announcement coincided with concerns in the EU that companies would relocate their operations to the US as a result of the historic Inflation Reduction Act, which was recently approved and provides tax breaks for batteries and electric automobiles built in the US.
The majority of the job cuts, according to a spokeswoman for the IG Metall union, would occur in Cologne, where Ford has a sizable facility, however, all locations around Germany are under threat.
“We at IG Metall are extremely concerned about the future of the German development divisions and, as a whole, about the future of the German Ford sites,” said a statement from the union after an extraordinary meeting with management.
Ford did not immediately respond to a request for comment from AFP.
The development centre has “successfully designed models for the European market, which often brought global success for the company,” according to IG Metall, a union that represents employees in the important electrical and metal industries.
If given the opportunity, Ford’s German employees can continue to create popular electric vehicles for Europe, according to the union.
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However, IG Metall warned that the US business risked “taking the axe to its own future” with the proposed layoffs and urged the automaker to rethink the decision.
Ford recently announced that it will significantly increase its investment in Germany in an effort to sell all of its passenger cars as electrified by 2030.
(With inputs from agencies)