The law includes limits on carbon emissions for new cars beginning in 2030, seeking cuts based on 2021 levels, and includes exceptions for companies that produce fewer than 1,000 vehicles. Lawmakers stressed that the law applied only to newly produced vehicles, not to fossil-fuel-burning cars and vans that are already on the road.
Heavy trucks and buses are also not included in the legislation. They will, however, be subject to a different set of rules that will scale the reduction of carbon emissions over time, but without any outright bans on fossil fuels.
A majority of the job cuts announced by Ford on Tuesday, 2,300 positions, will be at plants in the western German cities of Aachen and Cologne, the company said, with another 1,300 in Britain. Hardest hit will be workers in product development, as the company is driven by the shift to “all-electric powertrains and reduced vehicle complexity,” it said.
Other cuts will be in its administration, marketing and sales divisions in Europe, it said. Ford employs some 34,000 people across Europe.
More than half of Ford’s employees in Europe are in Germany. After the layoffs, that number is expected to shrink by nearly a third over the coming years, as the company reorganizes its production to focus on electric vehicles, many of which will be manufactured in Spain.
“The path to a sustainable, profitable future for Ford in Europe requires broad-based actions and changes in the way we design, build and sell Ford vehicles,” said Martin Sander, the manager of Ford’s electric-car division in Europe. “This has implications for the capabilities and organizational structure we will need in the future.”