American carmaker Ford plans to invest up to 4.4 billion euros in its German subsidiary Ford-Werke, which has accumulated more than 5 billion euros in debt. However, the company is refusing to cover its losses, which has been in place since 2006, the Financial Times reports.
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Ford's position towards the European market
Ford Vice Chairman John Lawler said the company had no plans to exit the European market but called on German and EU governments to speed up the transition to electric vehicles. He acknowledged that the company faces “tough decisions” as the transition to electric vehicles is slower than expected.
Staff reduction
In November, Ford announced it would lay off 4,000 workers in Europe, including 2,900 in Germany. The move drew sharp criticism from the IG Metall union, which called it a “dirty trick to put pressure on the works council.”
The future of the Saarlouis plant
The future of Ford's Saarlouis plant remains uncertain. The sale of the plant has stalled and the union has agreed to cut thousands of jobs.
Ford's financial losses
Ford suffered a $5 billion loss in its electric vehicle business last year and doesn't expect to break even until the end of the decade.
Falling demand for electric vehicles
Electric car sales in Europe are falling after subsidies were removed in Germany and France. “Everyone has a large supply of electric cars on the market. It’s a question of demand,” Lawler said.
The moves highlight the difficult situation Ford finds itself in in Europe as it struggles to adapt to the slow transition to electric vehicles and economic challenges.
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