The German division of Ford-Werke, burdened with €5.8 billion in debt, will continue its strategic transformation, focusing on cutting costs and increasing competitiveness, Ford said in a statement.
The move comes as the European auto sector faces high costs, weak demand and competition from Asian manufacturers, leading to plant closures and job cuts, while the United States is considering imposing tariffs on car imports.
Ford is already cutting thousands of jobs in Europe, many of them in Germany.
“By recapitalizing our German operations, we are supporting the transformation of our business in Europe and strengthening our competitiveness with a new product portfolio,” said John Lawler, executive vice chairman, Ford Motor Company. “To build a sustainable business in Europe, we also need to continue to simplify our management, reduce costs and improve efficiency.”
The new financing commitment includes a capital injection to address the over-leveraging problem at Ford-Werke and provide funding for a multi-year business plan.
Source: Reuters
