Camilla Jessen
Ford’s future in Europe is under serious threat.
Ford’s long-standing presence in Europe is now facing major uncertainty, especially at its Cologne plant, which has operated since 1930.
Workers’ unions are growing increasingly concerned that Ford Europe could go bankrupt if support from the U.S. dries up.
At the heart of the concern is Ford’s declining market share, weak sales, and the growing belief that the company is simply too small to compete in Europe.
“The situation is bad and the future does not look bright,” said Ferdinand Dudenhöffer, director of the Center for Automotive Research, speaking to NTV.
Ford is shrinking and shrinking – they are now so small in Europe that continuing in their current form may no longer make sense.
Factory Struggles Despite Billions in Aid
Last year, Ford announced plans for its German factories to become self-sustaining, and injected more than $4.3 billion USD into its European operations for a fresh start.
But even with that investment, sales remain weak, and management has warned that more layoffs and cost-cutting are on the way.
The Cologne plant, once employing 20,000 people, now has around 11,500 workers after years of downsizing.
And Ford’s market share in Germany continues to slide—dropping from 5% to 3.5% over the past three years.
Forced to Partner with Volkswagen
Ford is currently producing two electric vehicle models in Cologne, but production is costly because the company relies on Volkswagen-supplied components.
This dependence is also seen as a weakness, further raising questions about Ford’s long-term viability in Europe.
“One possible way forward would be to fully switch production in Cologne to electric cars,” said Stefan Bratzel, director of the Center of Automotive Management.
Some experts have even floated the idea of a merger with another European carmaker as a last-ditch solution.