Ford Germany Plant Faces Closure Amidst Failed Negotiations with Chinese Investors

author: FutureCar Staff    

Ford's negotiations with a Chinese investor for the sale of its plant in Germany have failed. This has put the future of the production center in question, with two possible outcomes: closure in 2025 or conversion into a technology center.

In an effort to reduce costs and focus on selling electric cars, Ford is shrinking its production network in Europe. The carmaker plans to introduce seven electric vehicles (EVs) in the European market by 2025, with the electric version of the Puma crossover leading the way. However, the plant in Saarlouis, Germany, which currently builds the Ford Focus, will be phased out in 2025 without an electric replacement, making its future uncertain.

The potential investor, whose name remains undisclosed, conducted a feasibility study and decided against proceeding with the transaction. While it is not confirmed, sources suggest that the investor was a Chinese automaker. Given the interest shown by Asian carmakers in the European market, this would not have been surprising. Building cars for Europe in Europe is more cost-efficient, just as German carmakers manufacture products for the Chinese market in China.

Fifteen potential investors, including BYD and Chery Automotive, had expressed interest in the plant earlier this year. Ford and the German state of Saarland held talks with BYD, as well as several smaller manufacturers and a German solar panel modules manufacturer.

With the plant's future uncertain, Ford is trying to come up with an alternative plan to save the positions of 1,000 employees out of the 4,400 currently working at the factory. One option being considered is converting the car plant into a technology center.

The decline of the Saarlouis plant began in 2022 when Ford selected the production center in Valencia, Spain, to manufacture its next-generation electric cars.

The workers at the Saarlouis plant are understandably upset about the potential job losses. The union representing them is trying to negotiate a collective bargaining agreement that would protect the workers who are at risk of being fired.

FutureCar Staff