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The UK chief of Ford has warned it could shrink further if demand for electric vehicle (EV) sales fails to pick up speed.

US-owned Ford is axing jobs across Europe, including 800 in the UK, but fears more gloom should the transition to battery-powered cars stall.

The prospect of more cuts at Ford came as Britain’s main motor industry body warned the Government that botching the switch away from petrol and diesel cars risked further factory closures and job losses.

Lisa Brankin, boss of Ford in Britain and Ireland, said: ‘If we don’t get demand, running it could have a broader impact across our business – but also other automotive businesses.’

Ford is not planning any more restructuring, but Brankin added: ‘Like any business we’ll need to assess market conditions and act accordingly to enhance the ability to compete in Europe.’

Ford employs 6,000 staff in the UK but many still face the axe. A major challenge is the zero-emission vehicle mandate which means car firms must meet targets to sell more electric vehicles or face fines.

Job cuts: US-owned Ford is axing thousands of jobs in Europe, including 2,100 in the UK, where it is led by UK boss Lisa Brankin (pictured)

Job cuts: US-owned Ford is axing thousands of jobs in Europe, including 2,100 in the UK, where it is led by UK boss Lisa Brankin (pictured)

At least 28 per cent of new cars sold by each manufacturer this year must be zero-emission.

A poll by the Society of Motor Manufacturers and Traders showed fewer than one in eight buyers want an EV. 

Mike Hawes, its chief executive, said: ‘We need to be pulling every lever to grow this demand.’

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