Ford Motor will invest up to 4.4 billion euros ($4.76 billion) in its German subsidiary as part of efforts to revitalize its European business, the U.S. automaker said on Monday.
The investment aims to support ongoing strategic transformation initiatives at Ford-Werke, focusing on cost reduction and enhancing competitiveness. “By recapitalizing our German operations, we are supporting the transformation of our business in Europe and strengthening our ability to compete with a fresh product portfolio,” said John Lawler, vice chair of Ford Motor Company.
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The funding package includes capital injections to address excessive borrowing at Ford-Werke and to provide resources for a multi-year business plan. Lawler emphasized the importance of further streamlining operations, stating, “To build a sustainable business in Europe, we also need to continue to simplify our governance, reduce costs and drive efficiencies.”
In addition to internal restructuring, Lawler urged European policymakers to set clear strategies for promoting electric vehicles and aligning emissions targets with consumer demand. The European automotive sector has been grappling with plant closures amid growing competition from Chinese manufacturers and the looming threat of U.S. tariffs on vehicle imports.
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Ford has announced substantial job cuts in Europe, with a significant portion affecting Germany, where domestic automaker Volkswagen has also faced challenges. The restructuring efforts come as Ford seeks to bolster its position in a rapidly evolving market, with electric vehicle adoption and regulatory shifts shaping the industry’s future.
Source: Reuters