Ford turns to the German government for state aid, that’s what makes it Handelsblatt known today. The European branch of the car manufacturer has applied for government guarantees in the amount of 500 million euros. However, according to the newspaper, Ford was already facing structural problems in Europe before the corona crisis. The criticism of the requested support has therefore not disappeared.
The German government provides financial support to domestic companies affected by the corona virus. For this it is so called Wirtschaftsstabilisierungsfonds (WSF), which contains 100 billion euros. Ford’s European arm, headquartered in Germany, has filed for government guarantees totaling EUR 500 million. The federal government is responsible for most of this, while the federal states of North Rhine-Westphalia and Saarland contribute a smaller part. Ford has factories here: a small one in Saarlouis and a large one in Cologne, where the Fiesta is built, among other things. Gunnar Herrmann, director of Ford Germany, says against Handelsblatt incidentally, that the car manufacturer is not in acute need: “We have been able to keep our capital base stable through temporary work and other measures,” said the CEO.
However, Ford has been struggling in Europe for some time. The car manufacturer was according to Automotive News already for the corona crisis plans to fire 20 percent of the workforce. In addition, the brand is hit hard by declining sales in England and the uncertainty surrounding Brexit. If the German government accepts the application, Ford would be the first major car manufacturer to receive government support in Germany. In Germany, people are also critical of the use of the WSF to help foreign companies. It would not be easy to check exactly where the money ends up. There is a fear that the state aid will eventually go abroad, something for which emergency funds are not intended. Ford Europe is a German company on paper, but is still part of the American Ford Motor Company.
Techzle is awaiting a response from Ford Netherlands to the question whether this will have any consequences for the Dutch branch. Ford does indicate that it does not use ‘any kind of scheme in the Netherlands,’ said the spokesman.