Ford injects €4.4bn into its German subsidiary to avoid crisis
Ford Motor has decided to shore up its loss-making German operations by investing up to 4.4 billion euros ($4.8 billion) in its Ford-Werke division. This is an attempt to save the European business, which is suffering from debt, competition with China and weak demand for electric cars.
Here's What We Know
Ford-Werke has accumulated €5.8bn of debt and without the financial backing of the US auto giant could go bankrupt in the coming years, as German trade union IG Metall warns.
The company is already cutting thousands of jobs in Europe, most of them in Germany. Ford says the recapitalisation will cut costs, improve competitiveness and launch a new product line.
Ford is changing its strategy in Europe
The US manufacturer is backing away from its previous plan to fully transition to electric vehicles by 2030 as demand for EVs is growing slower than expected.
Ford executives also called on European policymakers to create a clear strategy to support electric vehicles and align environmental requirements with actual market opportunities.
Source: Reuters
