Ford to Invest €4.4 Billion in German Subsidiary Amid EV Challenges

Ford announces a €4.4B investment in its German unit, Ford Werke, to strengthen its European presence. The company urges the EU to enhance EV support amid growing Chinese competition.

American automaker Ford has announced a major financial commitment to its German subsidiary, Ford Werke, aiming to strengthen its European presence. The company plans to invest €4.4 billion ($4.81 billion) to reinforce its position in the region amid intensifying competition from Chinese brands and slower-than-expected electric vehicle (EV) adoption.

Speaking to Financial Times on March 10, Ford Vice-Chairman John Lawler reaffirmed that the company has no plans to exit Europe. However, he urged the EU and national governments to step up support for EV adoption. Without additional incentives, Lawler warned, European automakers could struggle to compete with Chinese brands, which benefit from lower production costs and significant government backing in China.

Ford is already feeling the pressure: its EV sales in Europe have been underwhelming. Between July and November 2024, the company sold only 2,609 Ford Explorer and 152 Ford Capri units—both models manufactured at its new Cologne plant. This highlights the need for a more aggressive market strategy and potentially stronger financial support from European authorities.

Amid these challenges, the EU has begun implementing anti-dumping tariffs on Chinese EV imports in an effort to protect local manufacturers. However, this move may not be enough—competition is intensifying, and Chinese automakers are legally contesting the trade barriers.

Ford’s investment in Ford Werke signals a restructuring effort aimed at adapting to shifting market dynamics. But the key question remains: will it be enough to maintain a foothold in Europe? The answer will depend on EU policy decisions and the company’s ability to adjust its market approach effectively.

Source: automotiveworld.com