Ford plans to cut 4,000 jobs across Europe by 2027, including around 800 roles in the UK, as the company responds to slow demand for electric vehicles (EV) and intensifying competition from Chinese car makers.

The restructuring represents 14% of Ford’s European workforce of 28,000 and aims to establish a more cost-efficient structure while investing in the transition to EVs.

In the UK, the car maker said its Dagenham and Halewood factories will not be affected, although the specific nature of the proposed cuts has not been disclosed.

Ford employs 6,500 people in the UK, including at its technical centre in Dunton, Essex, which develops the Transit van.

Meanwhile, 2,900 jobs will be cut in Germany, where Ford’s factory in Cologne, upgraded with a £1.6 billion investment for EV production, will reduce its operating hours.

The company has also scaled back production plans for its electric Explorer and Capri models, citing weak economic conditions and lower-than-expected demand.

Ford Europe vice president Peter Godsell said Ford is experiencing "weaker demand for electric vehicles than we had previously forecast and we continue to have challenges around our operating costs... so we need decisive action to restructure our business."

He added that Ford hoped the restructuring would support the business, but said "we certainly can't rule out" additional measures if the market worsens.