Ford in Europe now receives billions of Danish kroner in support from its parent company in the US. With the money, a guarantee from the US disappears.
Ford's German subsidiary is struggling with a gigantic debt. But now the parent company is coming to the rescue with 33 billion kroner from across the Atlantic.
This is what Electric Drive writes.
In total, Ford in Europe will receive 33 billion Danish kroner. Money that will be used to collect or completely erase the gigantic debt that the European company has accumulated.
However, this does not mean that Ford's problems in Europe are over. The group still needs to cut 4,000 jobs.
But with the money comes a very specific condition. Ford in the US has withdrawn from the warranty obligation that the European company has benefited from since 2006.
Ford in Europe is now no longer guaranteed any help from the US
Here, Ford in the US guaranteed that it would cover all financial obligations in Europe if necessary. But it no longer does so on the other side of the Atlantic.
The money should therefore be seen as a one-time payment. If Ford in Europe cannot manage with that money, it is no longer the Americans' responsibility.
In other words, the capital injection puts Ford in Germany on an equal footing with all other subsidiaries of the car brand.
"To be successful in Europe in the long term, we must continue to simplify our structures, reduce costs and increase efficiency," said John Lawler, vice president, Ford Motor Company Europe.
At the same time, John Lawler emphasizes that Ford cannot do it all alone. If the European car industry is to be successful, it is also necessary to have political help.
However, John Lawler will not comment on what the political assistance might look like. Last year, Ford sold its Danish division after 105 years under American control.
As one of the few car brands in Danish history, Ford has both sold and built cars in Denmark. The factory, which was located in Sydhavnen, Copenhagen, closed in 1966. At that time, almost 400,000 cars had been built in Denmark.
However, the factory no longer exists. It was demolished 19 years ago when an attempt to protect the area in 2006 failed.
