Potential Partial Sale of Ford's Cologne Plant Under Consideration

Ford Motor Company is contemplating a partial sale of its manufacturing facility located in Cologne, Germany. However, the specifics regarding the extent of this potential divestment remain undefined.

The Cologne plant holds historical significance, having been inaugurated on October 2, 1930, with the attendance of the then Mayor of Cologne, Konrad Adenauer. Over recent years, substantial investments have been made to upgrade the site for electric vehicle production. Nevertheless, the business performance has not met expectations, prompting discussions about selling parts of the facility.

The works council at Ford Germany has indicated awareness of ongoing discussions regarding the sale of sections of the plant. Management aims to reduce the workforce through business transfers, a move the works council views with concern, as employees could face worse working conditions after transitioning to new companies. A company spokesperson declined to comment on the matter, following earlier reports from the Kölnische Rundschau.

Significant job cuts are on the horizon, as it was disclosed at the end of 2024 that Ford plans to eliminate 2,900 positions in Germany over the next three years. Currently, the Cologne facility employs over 12,000 individuals, a drastic reduction from nearly 20,000 employees just a decade ago, despite the plant's size remaining constant.

Ford is currently under substantial pressure. Despite a billion-dollar investment aimed at revitalizing the Cologne site, the sales performance for the new electric models, such as the Explorer and the SUV coupe variant, the Capri, has been sluggish. The recently introduced Puma EV faces challenges due to its relatively high price point. Meanwhile, the Focus and Kuga, which have been Ford's top-selling models, have been on the market for some time, with production of the Focus expected to cease later this year without a direct successor.

In March, Ford's U.S. headquarters announced a financial support package amounting to a billion dollars for its German division to assist with debt reduction. However, this aid comes with a caveat, as Ford has retracted its previous commitment from 2006 to manage the German subsidiary's debt obligations. Consequently, the German operations will now be solely responsible for handling these financial challenges.