Standoff at the Steel Mill: Workers at Ford's Cologne Plants Take a Stand Against Mass Layoffs
Workers at Ford factories in Cologne initiate a work stoppage for the initial time
In a break from history, the age-old Ford plant in Cologne, Germany, faces a strike for the first time ever. This, in response to management's ambitious plans to slash 2,900 jobs by 2027, a move that workers' union, IG Metall, vehemently opposes. The strike, starting Wednesday morning and lasting until the end of the night shift on Thursday, seems poised to cause significant ripples in production.
Over 93% of IG Metall members at Ford, in a recent poll, voted in favor of a strike, pressuring management to reconsider and reach a compromise. Benjamin Gruschka, chairman of the Ford Germany works council, weighed in strongly, stating, "Enough is enough; it's high time the employer stepped up and found a comprehensive solution for the Cologne workforce."
The influence of German management at Ford Werke GmbH is somewhat limited due to the company's reliance on its US parent company. Recently, the parent company withdrew a guarantee, amplifying the pressure on the German subsidiary.
Europe's Struggling Car Businesses
Ford, strong in the commercial vehicles and pickups segment, faces persistent financial struggles in its Europe-focused car division. After years of losses, the Cologne-produced Ford Fiesta, once a sales phenomenon, has seen better days and production ceased in 2023. The plant now produces two electric vehicles, whose sales have fallen short of expectations. Billion-euro investments in transitioning to EV production have yet to bear fruit.
In 2024, Ford's market share in Germany declined by 1.5 percentage points, with only 3.5% of new vehicles registered carrying the Ford brand. Despite an infusion of several hundred million euros from the US parent company for further investments over four years, experts believe this may not be sufficient to turn the tide.
Industry Pains and Future Prospects
Of the 11,500 Ford employees in Cologne, 4,500 work in production, 3,500 in research and development, and around 1,700 are employed in a spare parts center. The strike's impact on Ford's Cologne plant could be significant, as most employees are union members and discontent is high.
Industry experts view Ford's European car division with skepticism. "The situation is dire, and the future looks grim," says Ferdinand Dudenhöffer, director of the CAR automotive institute. "Ford is too small, playing in the car sector, to operate profitably in Europe. This is the status quo, and it's likely to persist." The low unit sales and high labor costs contribute to Ford's ongoing market share losses in Germany and Europe.
Two potential solutions, according to Dudenhöffer, are selling the European car business or forming a joint venture with another car manufacturer. Renault might be a potential partner. Stefan Bratzel, director of the Center of Automotive Management, proposes a third solution, wherein the US parent company invests heavily in developing and producing new electric cars and improving the brand image.
Ford sources central components for its electric vehicles in Cologne from Volkswagen. "The value addition for Ford is not substantial, making the enterprise less appealing," says Bratzel. Ford's late and half-hearted foray into e-mobility contributes to its grim prospects in Europe, with increasing competition from emerging players like Chinese manufacturers.
Source: ntv.de, mdi/dpa
- Ford
- Cologne
- Automotive industry
- Car manufacturer
- Strikes
- IG Metall
- The automotive industry in Cologne faces turmoil as workers at Ford's plant initiate a strike, protesting against the proposed 2,900 job cuts by 2027, a move opposed by the workers' union, IG Metall.
- Ford's European car division, particularly its Cologne plant, has been struggling financially due to persistently low sales in the car segment and high labor costs.
- In response to Ford's financial struggles, industry experts like Ferdinand Dudenhöffer of the CAR automotive institute propose solutions such as selling the European car business, forming a joint venture with another car manufacturer, or investing heavily in developing new electric cars and improving the brand image.
- The strike, originating from the discontent among the union members, could significantly impact Ford's production in Cologne, where a majority of employees work in production and are members of IG Metall.
- Experts view Ford's European car division with skepticism, suggesting that the company may be too small to operate profitably in Europe's car sector due to low unit sales and high labor costs.
- Ford sources central components for its electric vehicles in Cologne from Volkswagen, but the value addition for Ford is not substantial, potentially making the enterprise less appealing amidst increasing competition from emerging players like Chinese manufacturers.
