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Monday, March 27, 2023

Ford will lay off 3,200 employees in Europe. How America and China are winning the electric car battle

The plan is clear: lay off 3,200 Ford employees in Europe and move part of the work to the United States. A movement that is starting to become common, with manufacturers on the other side of the pond looking for space to build their electric vehicles or batteries. Whether under duress or of their own free will, the fact remains that brands are investing in this country. And Europe watches from afar.

3,200 layoffs, Out of which 2,500 employees work in product development and another 700 are in charge of administrative functions. Most of Ford’s layoffs will take place in Germany, where the company has its Cologne and Saarlouis plants, but they are also expected to take place at its Almüsfaze factory in Valencia.

This last plant is jeopardizing its future, along with the German factory in Sarlouis, with the award of the new electric model. Finally, Volkswagen’s decision to set up its battery factory in Sagunto ended the company’s decision to prioritize the Spanish plant and now it seems Spain will not bear the brunt of these layoffs.

manpower of labor, This is what Ford is claiming to lay off more than three thousand. They maintain that the reduced complexity in the assembly of the electric car will force the company to reduce labor by 30 to 50%. Confirmation that cuts are also expected at Almusfe in the future, even if he is awarded an electric car.

but not labor, The problem for the employees of Amussafes and, what we are seeing in Europe, is that we remain the same in front of the manufacturers manufacturers And that we don’t have key people in the development of future electric vehicles, their batteries, or the R&D of their software.

Volkswagen has maintained that its batteries and software are developed in Germany, but more and more manufacturers (including Volkswagen itself) are taking positions in the United States, where there are large economic incentives to focus production there. And which, moreover, are raising significant barriers. For entry of manufacturers who do not produce in the country.

it’s made here, Joe Biden, the President of the United States, has been clear and direct with the intentions of his Inflation Reduction Act: to manufacture as many components as possible in the country to promote the takeoff of the electric car and favor local industry. I eat? Could reach 100% by 2028 with tax breaks for batteries and vehicles assembled in the United States.

Minerals must be mined in the United States or any country with which it has a free trade agreement. The same happens with the recycling of batteries or the production of their vehicles. Political maneuvering is also another tool to guarantee the supply chain in the production of electric cars, which is currently dominated by China.

a pliers, Europe finds itself at a difficult crossroads in which it has not taken sides for the time being. He has decided to bet on the electric car without hesitation, but at the same time he sees how China is the largest producer of electric vehicles in the world and, moreover, it is firmly entering the European market, with a proposal With that which embraces all costs.

In addition, he looks with fear at the enormous impact this country will have on the supply chain for its supply of minerals and rare earths. The response of the United States has been clear and forceful: there will be a beneficial treatment for the accounts of those who manufacture in the country. This country is also reaching an agreement with South Korea to favor their commercial deals, and at the same time, in Spain we are having problems with obtaining European funds, because the required deadlines are not enough to meet the deadlines of some firms. I do not hold, like Stellantis in Vigo.

how do we do it? There are more and more voices warning of the dangerous path Europe has taken. Institutions want to give way to the electric car but not enough batteries are manufactured and a severe shortage is expected. They also want to be a force in the region but China’s power in the supply chain is immense.

All this has prompted some voices in the region to explicitly demand that tougher tariffs be imposed on Chinese firms. This has been requested by Carlos Tavares, CEO of Stellantis, on several occasions. At the moment, the budget for the production of the necessary batteries, which are claimed in the coming years, is already 100,000 million euros.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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