Ford to invest $4.8B in German subsidiary

Ford Motor Company has unveiled a major investment package of up to $4.8 billion for its German subsidiary, Ford-Werke GmbH, as part of a strategic overhaul to revitalize its struggling European operations and bolster its position in the electric vehicle market.

The substantial capital injection aims to address the subsidiary's crippling debt, which currently exceeds €5 billion, while funding a comprehensive multi-year restructuring plan. This move demonstrates Ford's commitment to maintaining a competitive presence in Europe despite mounting challenges.

Ford faces significant hurdles in meeting its ambitious goal of transitioning to an all-electric lineup in Europe by 2030. The company has experienced declining market share and disappointing sales of its new EV models. To reverse this trend, Ford plans to introduce a refreshed product portfolio featuring vehicles like the Puma Gen-E, Capri, Explorer crossover, and Mustang Mach-E.

As part of its cost-cutting measures, Ford has announced plans to eliminate approximately 4,000 jobs by 2027, with a substantial portion of these reductions occurring in Germany. These workforce reductions accompany broader efforts to streamline operations, simplify governance structures, and enhance overall efficiency across European divisions.

Ford executives have called on European policymakers to implement supportive measures that encourage EV adoption and align emissions targets with real consumer demand. John Lawler, Vice Chair of Ford Motor Company, emphasized the need for consistent policy frameworks, incentives, and infrastructure development to stimulate market growth for electric vehicles.

The European automotive landscape is increasingly challenging, with pressure from cost-effective Chinese EV manufacturers and potential U.S. tariffs threatening established players. These market forces have already led to plant closures and job cuts across the industry, affecting both Ford and competitors like Volkswagen in Germany.