Ford's German Plant Faces Renewed Uncertainty As Investor Talks Stall: Report

Automaker Ford Motor Co F has announced that negotiations with an interested party for its Saarlouis plant in Germany have reached a standstill.

This abrupt conclusion reignites concerns among the workforce regarding the longevity of their roles and the facility's destiny.

The prospective investor, whose identity remains undisclosed, entered a provisional agreement earlier this year in June and has now chosen to discontinue these talks, according to a Reuters report.

Uncertainties over the Saarlouis facility's future emerged in June 2022, prompted by Ford's decision to favor a Spanish location over Saarlouis for the assembly of its forthcoming electric vehicle.

The decision implies the Saarlouis location will cease the production of its existing model, the Ford Focus, by 2025.

Earlier reports by the plant's works council mentioned that up to fifteen potential investors had shown interest in the Saarlouis plant, with the Chinese EV manufacturer, BYD Company BYDDY, being one of the interested parties.

Had the negotiations with the potential investor been fruitful, it would have solidified the continuation of approximately 2,500 jobs out of the total 4,500 at the site.

Now, Ford has shared its intentions to retain 1,000 positions at the location under a newly devised alternative plan that might lay the groundwork for transforming the location into a potential technology hub, although specifics remain undisclosed.

This setback will undoubtedly dismay the unions, who anticipated a resolution by the beginning of 2023's second quarter. They've asserted that the employees wouldn't be willing to prolong their wait until 2024.

Price Action: Ford hares are trading lower by 1.4% at $11.80 on the last check Thursday.

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Photo: Ford