Ford jobs cuts signal ‘an incremental death’ to its future in Germany: Is the end near?
With plans to drastically downsize its workforce, Ford’s future in Germany looks bleak. According to Germany’s largest trade union, Ford’s new job cuts “would mean an incremental death” to its future in Cologne.
Ford’s job cuts spark backlash in Germany
On November 20, Ford announced plans to cut another 4,000 jobs in Europe by the end of 2027. Most of them will be in Germany, about 2,900 of the eliminated positions.
The move comes after Ford incurred “significant losses” in recent years amid a “highly disruptive” influx of new competition, mainly electric models. Ford blames slower-than-expected demand for its EVs and a weakening economic situation for the downsizing.
According to the German newspaper Automobilwoche, Ford’s job cuts are now being discussed among economic committee members in the state parliament of North Rhine-Westphalia.
SPD parliamentary group leader Jochen Ott said, “The job cuts announced on November 20 are a breach of the agreement reached in February 2023.” Ott added that the lack of transparency and late information provided to the works council are a “blatant breach of trust and a slap in the face.”
Germany’s largest trade union, IG Metall, even chimed in, claiming the plans “pose a massive threat to the continued existence” of Ford’s remaining German sites.
Ford is still the largest employer in Cologne, but it will slash about one in four of its current 12,000 jobs by the end of 2027. By then, the American automaker will have halved its workforce in just ten years.
Two electric models, the Explorer and Capri EVs, are currently built in Cologne, but lack of demand is forcing Ford to slow production. Ford began building Capri EV models just last month after the electric Explorer in June.
Electrek’s Take
Ford is struggling to keep up in Europe as new competition enters the market. With China becoming flooded with low-cost EVs, domestic automakers are looking overseas for growth, and Europe is one of the biggest targets.
BYD, MG, NIO, and others are launching advanced new EV models aimed at European buyers. After squeezing legacy automakers like Ford, VW, and Toyota out of their home market, Chinese EV leaders are now looking for a bigger share of the global market.
As its record sales run continues, BYD topped Nissan and Honda for the first time in global deliveries this year. Now, it’s closing in on Ford.
According to a recent Bloomberg report, BYD is quickly closing in on Ford in global deliveries and could top the American automaker sooner than expected.
CEO Jim Farley acknowledged the threat of Chinese automakers, saying, “As the CEO of a company that had trouble competing with the Japanese and the South Koreans, we have to fix this problem.”
Ford is shifting plans to focus on smaller, more profitable EVs with a new low-cost platform. However, the first model, a midsize electric truck, won’t hit the market until 2027. By then, it could be too little, too late.
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Slate Auto, a new EV startup backed by Jeff Bezos, has poached a key Tesla manufacturing leader to build its electric pickup truck factory in Indiana.
Napoleon Reyes is a US Marine from Indiana who got a degree in mechanical engineering from Purdue after leaving the force.
He then worked a few years at Subaru and Wabash before joining Tesla’s manufacturing team at the Fremont Factory in 2020.
There, he became part of the Model Y production ramp and was quickly promoted to lead the Model Y General Assembly in Fremont in 2022.
Reyes led Model Y GA, one of the most critical parts of vehicle manufacturing, for more than a year before being promoted again to lead new pilot processes at the factory.
Most recently, he led the launch of the general assembly line for the Model Y refresh.
The new engineering manager announced this week that he is leaving Tesla to join Slate:
A bit late on the post but after nearly 5 years working at Tesla in Fremont, I made the difficult decision to leave the Company and move closer to home with my family. It was an incredible experience being part of multiple line expansions and multiple Model Y program launches. Leading and managing the Model Y Refresh launch for GA in Fremont this year tested me professionally however we ultimately succeeded due to our amazing cross functional team collaboration. It’s been an absolute pleasure working with such great people, and I will forever be proud and thankful for everything we accomplished together.
I will be taking on a new role as Senior Manager, Plant Vehicle Engineering at Slate Auto in Warsaw, In.
Slate emerged from stealth mode earlier this year to unveil a new type of electric pickup truck featuring modular customization and an affordable price.
The company raised over $700 million through two rounds of investments from several different investors, including Jeff Bezos. It is currently raising more, which basically guarantees that it will be able to reach production.
The startup acquired a former printing plant in Warsaw, Indiana. It is currently converting to manufacture its electric pickup with a team from legacy automakers and also several former engineers and leaders from Tesla.
Rich Schmidt, an early Tesla manufacturing director, is the head of manufacturing.
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Genesis is preparing to shake things up with its most luxurious SUV yet, the GV90. Thanks to a new patent filing, we are getting a detailed look at how its Rolls-Royce-style coach doors will work.
New patent reveals Genesis GV90 coach door system
When Genesis first unveiled the full-size SUV at the NY Auto Show last March, it wasn’t the stunning design or advanced tech that caught everyone’s attention. It was the coach doors.
Although we were worried it wouldn’t make it to the production model, like many concepts, the Genesis GV90 will be offered with coach doors.
The ultra-luxe electric SUV was first caught with coach doors earlier this year on a car carrier in South Korea. Just last month, the GV90 was spotted in California with a hinge at the rear to open the coach doors.
After several new patents were filed with the United States Patent and Trademark Office for new door latching devices, we are getting a sneak peek at how they are expected to work.
The patents, titled “Cinching Device For Door Latches in Vehicle,” and “Door Latch Device for Vehicles,” give a pretty detailed explanation of how the Genesis GV90’s coach doors will operate. The “Door Latch Device” uses a door striker on the lower side of the door, which is opened or closed by a hinge unit.
Unlike traditional doors, which use the B-pillar for support, the device is attached directly to the door itself, allowing for hinge-like movement.
The cinching device works in a similar way. It’s also attached to the door and part of the vehicle. However, unlike most of its kind, Genesis found a way to use a single cinching device to control multiple units. Again, the device is used for B-pillarless doors that swing open.
Genesis already said that B-pillarless coach doors are now feasible in production vehicles. The patent reveals a glimpse into how the luxury automaker could make it a reality.
Although the Genesis GV90 is expected to be offered with coach doors, they will likely not be standard. Other variants, with traditional door handles, have also been spotted testing in the US and South Korea.
Genesis is expected to launch the GV90 in mid-2026. It will be built at Hyundai’s Ulsan plant in South Korea. The flagship Genesis SUV is scheduled to debut on Hyundai’s new eM platform, which the company said will “provide 50% improvement in driving range.” It will also be loaded with the latest technology, software, connectivity, and Level 3 or higher autonomous driving capabilities.
Source: USPTO
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Environment
Podcast: Tesla Model YL, more Tesla probes and lawsuits, new Nissan Leaf pricing, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the launch of the Tesla Model YL, more Tesla probes and lawsuits, new Nissan Leaf pricing, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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