After a capital injection of 33 billion kroner, Ford in Europe must now manage without its parent company in the US. Union fears bankruptcy.
A possible bankruptcy at Ford in Europe is a real possibility, according to the unions among European Ford employees.
The European division of Ford is struggling with significant debt and, according to the factory workers' unions, looks very uncertain.
And this is especially true after the parent company in the US has revoked the guarantee, which since 2006 has otherwise meant that the Americans covered any financial losses in Europe.
Ford-Werke, which handles the automaker's European passenger car business and production in Germany and Spain, is now effectively without a financial safety net from the parent company.
The capital injection, which amounts to 33 billion kroner, will be used to cover some of Ford Europe's enormous debt.
Union fears Ford will be crushed by debt
Benjamin Gruschka, union leader at Ford-Werke, is however concerned that the money is far from enough.
– In principle, it is now possible that the German subsidiary could go bankrupt within a few years if the situation does not change for the better.
– The parent company has always been a support in the background, but that's over now.
The economic situation for Ford in Europe is largely characterized by deficits as a result of high expenses and declining sales.
According to sources spoken to by Automotive News , the company has debt of around 100 billion kroner.
If the downturn in passenger car sales, which fell by 17 percent in 2024, continues, the deficit in the business is expected to become even greater.
According to Automotive News, this puts pressure on employee unions, who may be forced to accept further cuts to preserve jobs.
Ford management itself has explained that the change for Ford-Werke in Germany is in line with the practice of other Ford subsidiaries globally.
Four years ago, Ford announced plans to restructure its European business with a focus on transitioning to electric vehicles by the end of the 2020s. However, that plan was later scrapped again.
However, the restructuring has already resulted in mass layoffs. Last year alone, 4,000 jobs were cut, on top of the 3,800 positions that disappeared in 2023.
The majority of these cuts have taken place in Germany, where Ford is, among other things, closing its factory in Saarlouis. The site is being taken over by a pharmaceutical giant.
For the capital injection into the European division, Ford Motor Company officially withdrew from Denmark after 109 years. Now the import of the brand is handled by the Nic. Christiansen Group, which also imports the BYD, Kia and Hyundai brands.
