Ford (F.N), which faced significant losses in its electric vehicle division last year, plans to invest up to 4.4 billion euros ($4.76 billion) to revitalize its struggling German operations and strengthen its European business. Its German subsidiary, Ford-Werke, will continue its strategic transformation efforts, focusing on cost reduction and improving competitiveness.
As part of the investment, Ford will introduce a new press system for hot-stamping high-strength boron steel to produce lightweight components. The plan also includes logistical support and energy supply projects aimed at lowering production costs and reducing energy consumption, the U.S. automaker confirmed after the Financial Times first reported the news.
Western carmakers are facing stiff competition from EVs made by Chinese manufacturers, which can offer them at lower prices due to lower labor and energy costs. They also face rising regulatory pressure in Europe, including stricter emissions standards that will come into force next year.
In Germany, sales of EVs have slumped by almost a fifth, with the segment’s share of overall car sales dropping to less than 1%. Berlin cut a state subsidy for EVs in December to help pass the budget. Meanwhile, analysts say low consumer demand and high electricity prices make it difficult for companies to cover the production cost of battery-powered cars.
Lawler said Ford was committed to Europe, where it has invested over the past four years in its plants and workforce. He urged policymakers and social partners to work together for success in the region’s automotive industry. “What we need in Europe is an unmistakable agenda to promote e-mobility, public investments in charging infrastructure, meaningful incentives for consumers to switch to electrified vehicles, and greater flexibility to meet CO2 compliance targets,” he said.
Ford closed 2024 with record revenue but said it remained cautious about its outlook for the next five years. It has set 2025 adjusted EBIT guidance of between $7.0 billion and $8.5 billion, below Wall Street’s expectations. Its stock fell 5.1% in premarket trading on Monday.