Frankfurt: Ford Motor announced on Monday that it will invest as much as 4.4 billion euros ($4.76 billion) into its ailing German operations to rejuvenate its European business. Ford stated that its German subsidiary, Ford-Werke, will persist with strategic transformation efforts aimed at cutting costs and enhancing competitiveness, following the initial report by the Financial Times. "By recapitalizing our operations in Germany, we are aiding the transformation of our European business and enhancing our capacity to compete with an updated product range," stated John Lawler, vice chair of Ford Motor Company, according to a Reuters report.
Ford invests in Germany revamp
"To establish a sustainable enterprise in Europe, we must also persist in streamlining our governance, cutting costs, and enhancing efficiencies." The fresh funding commitment encompasses a capital infusion to tackle excessive borrowing at Ford-Werke and offer financing for a long-term business strategy. Lawler further urged European policymakers to create a definitive agenda that supports electric vehicles and aligns emissions targets with consumer demand.
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Europe's automotive sector has been forced to shut down facilities due to intense rivalry from China, impacting demand. The industry is also preparing for U.S. tariffs. Ford is eliminating thousands of positions in Europe, with a significant number in Germany, where local powerhouse Volkswagen is also facing difficulties.
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