
Ford management has offered to discuss with union representatives planned structural changes at the Ford plant in Cologne, Germany, and other units in that country, but no specific proposals have been presented, a union official told DPA and Reuters on Saturday.
Speaking at a news conference in Cologne, Benjamin Hrushka, chairman of Ford’s German works council, said people were ready to push back against the restructuring plans, but gave no specifics.
Shifting major development activities to the US threatens Ford’s entire passenger car segment in Europe. Cars developed in the USA are not sold in Europe due to different customer needs, Hrushka explained.
He warned: “If no more cars are developed in Europe, this fact will mean ‘the beginning of the end.’
The American automaker currently has approximately 14,000 employees at the Cologne plant, where approximately 3,800 people work on product development, and plans to lay off up to 2,500 people in this segment, the employee council said. Also, 700 employees of the administrative sphere may be laid off.
Representatives of IG Metall, Germany’s largest union confederation, announced Wednesday that Ford will decide by mid-February how many jobs will be cut in Europe.
Ford declined to comment on the claims, recalling that it issued a press release on Jan. 20 saying the transition to electric vehicles would require structural changes, but that it would not comment until plans are finalized.
Ford’s European workforce has been hit by a wave of layoffs in 2019 and 2020 as the automaker sought to achieve a 6% operating margin in Europe that was disrupted by the coronavirus pandemic, so that in the first nine months of last year, Ford achieved a European gross profit of just 2. 2% of sales.
Ford’s European subsidiary manufactures, sells and services Ford vehicles in 50 markets, employing approximately 45,000 people at its own facilities and joint ventures, according to information posted on the company’s website.
The American automaker has committed to selling only electric cars in Europe by 2030, and by 2024, three new electric cars and four new electric cars will be launched on the European market.
(source: Agerpress)
Source: Hot News

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