Ford will cut 800 jobs in the UK due to concerns over the “health” of its passenger car business.

The move is part of a major cost-cutting programme to axe 4000 jobs in European, with Germany to be the biggest market affected. 

The Blue Oval said it had incurred “significant” losses in recent years, blaming failings on industry disruption that includes “unprecedented” competitive, economic, and regulatory headwinds.

“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe,”  said Dave Johnston, Ford’s European vice president for transformation and partnership. He added that Ford was "committed to building a thriving business in Europe for generations to come".

The cuts will be made by the end of 2027, creating what Ford calls a “more cost-competitive structure” to ensure the brand’s long-term European survival as well as its ability to grow.

Which jobs will be axed, and specifically where, have yet to be announced, but will “primarily impact operations in Germany but also the UK”, with minimal reductions in otherEuropean markets, said Ford.

In the UK, Ford operates an engine factory in Dagenham and transmission plant in Halewood, the latter receiving £125 million of investment in 2022 to both increase capacity by 70% as well as to get it ready for electric motor production. Ford has some 5300 workers in the UK.

In Germany, the brand has two vehicle production plants. Its Cologne factory is crucial to its European business as it builds the Explorer and Capri while it is also tipped to build the upcoming electric Puma. It employs some 4000 workers.

Its Saarlouis plant, meanwhile, is the hub for the Focus, which will see production ceased in the middle of next year. The brand has announced in February that 2700 jobs will be cut from the factory as a result, although it has not been confirmed if the new 4000 cuts includes these.

The latest news follows a period of great change for Ford of Europe, which in recent years culled popular ICE models such as the Fiesta and Focus in favour of a new wave of electric models including the Explorer and Capri. The brand says the industry's shift to EVs has been "highly disruptive".

Such was its difficulties, Ford’s electric vehicle boss Marin Gjaja told Autocar that the company’s plan to go all-electric by 2030 in Europe was “too ambitious”, blaming the “uncertainty” around EV demand and legislation. Instead the brand will continue to invest in hybrid powertrains.