FRANKFURT — Ford has used for 500 million euros ($581 million) of German bank loan ensures aimed at supporting domestic organizations strike by the fallout from the coronavirus pandemic, enterprise everyday Handelsblatt noted on Monday.
The automaker has two production spots in Germany. Ford builds the modest Fiesta modest hatchback in Cologne and the Concentration compact hatchback in Saarlouis.
Ford desires the federal govt to grant most of the financial loan assures even though a smaller share is predicted to occur from German states, Handelsblatt mentioned. Ford experienced no instant remark.
Labor unions are worried about the potential of the Saarlouis manufacturing facility following the end of output of the Focus in 2024.
“We know the day September 2024, but almost nothing extra,” claimed functions council chairman Markus Thal instructed Automobilwoche, a sister publication of Automotive Information Europe. The manufacturing unit employs 5,300 people.
Even though Germany has offered coronavirus-related assist to organizations this kind of as car sections provider Leoni, Ford would be the first significant automaker in the region to acquire these types of help from the govt.
Prior to the coronavirus pandemic hit automakers, Ford was setting up to eradicate about 20 percent of the workforce across its European functions.
The automaker has struggled in the region’s crowded and experienced market for a long time and it has been notably hard hit by falling car product sales in the U.K. because of the uncertainty encompassing the country’s exit from the European Union.
Ford’s passenger car or truck product sales in the EU, EFTA and U.K. fell 38 percent to 401,722 in a market down 33 p.c by August, in accordance to knowledge from industry association ACEA.
Automotive Information Europe contributed to this report