Ford said on Wednesday it would cut about 14% of its European workforce, citing significant losses in recent years exacerbated by weak demand for electric vehicles, a lack of government support for the shift to electric vehicles and increasing competition.

The US company is the latest carmaker after Nissan, Stellantis and GM to cut costs as the industry grapples with growing competition from Chinese rivals in Europe, slowing demand in China and the challenges of switching to electric cars, which are still too expensive for the most consumers to buy. .

Ford said the 4,000 job cuts would be primarily in Germany and Britain. Globally, the layoffs represent about 2.3% of Ford’s workforce of 174,000.

The measures will be a big blow to Germany in particular, Europe’s largest economy and largest car manufacturer where Volkswagen is threatening to close factories, cut wages and cut thousands of jobs to improve its ability to compete.

The country’s deepening political crisis also adds uncertainty to companies grappling with growing trade tensions with China and the US election victory of Donald Trump.

Ford said the European layoffs should take place by the end of 2027.

Europe’s automakers “face significant competitive and economic headwinds while also tackling a mismatch between CO2 regulations and consumer demand for electrified vehicles,” the company said in a statement.

To September this year, Ford’s sales in Europe fell 17.9%, far outstripping an industry decline of 6.1%.

Ford also specifically called on the German government to provide more incentives and better charging infrastructure to help consumers switch to electric cars.

Berlin ended EV subsidies last December. Sales of electric cars in Germany in the first nine months of this year fell by 28.6%.

“What we lack in Europe and Germany is an unmistakable, clear policy agenda to promote e-mobility, such as public investment in charging infrastructure, meaningful incentives … and greater flexibility in meeting CO2 compliance targets,” Ford CFO John Lawler. wrote in a letter to the German government.

Ford has been going through a painful restructuring in Europe and announced 3,800 job cuts by February 2023. Ford is also closing its Saarlouis plant in Germany next year with further cuts.

The European Union has slashed tariffs on Chinese-made electric cars, saying they benefit from unfair subsidies from China’s government.