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Ford Pledges up to €4.4bn to Reduce German Unit’s Debt and Support Operations
March 12, 2025
Ford Motor is injecting up to €4.4bn ($4.8bn) into its German unit Ford Werke, to reduce debt and support its operations for the next four years. The move aims to stabilize Ford Werke, which has been facing losses due to high costs and weak demand. The US automaker plans to cut the business’ €5bn debt to more manageable levels. Additionally, it will invest around €500mn over four years in a business-improvement plan designed to restore profitability. Ford’s European restructuring, announced four years ago, has not gone as planned. The company aimed to transition almost entirely to electric vehicles by the end of the decade, but weak demand and high costs are believed to have led to significant job cuts. Ford cut 3,800 jobs in 2023 and announced a further 4,000 job reductions last year. Meanwhile, S&P has recently cut Ford’s outlook to negative, citing weak earnings projections for 2025. The company also faces uncertainty around EV adoption and recent major plant investments, having sustained losses in its Model E business.
Ford’s bonds were trading weaker across its curve, with its 3.2% 2032s down by 0.9 points to 98.6, yielding 6.33%.
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