Why Is Ford Closing Its German Plant? We Have All the Details
Ford’s second production plant in Germany is slated to close after losing a bid to produce EVs to the Valencia, Spain facility.
Written by Allison Stone
Reviewed by Kathleen Flear
Ford
has had a presence in Germany since it first opened the Cologne Body and Assembly Plant in 1929, but it looks like the doors of its smaller sister site in Saarlouis will be shuttering by 2025.The announcement came after the Saarlouis plant lost production bids as a future Ford EV site to its fellow German plant in Cologne and the Valencia Body and Assembly Plant in Spain.
Car ownership super app
Jerry
breaks down everything you need to know about why Ford is closing the Saarlouis plant, what this means for Ford in Europe, and how EVs are changing the world of automotive production. Why is Ford downsizing in Germany?
The main reason for the closure of the Saarlouis plant is that Ford is shifting its focus to electric vehicles.
According to
Forbes
, Ford’s European Chairman Stuart Rowley told journalists that he is looking for “alternative opportunities” for the Saarlouis plant following a confirmation that Ford will not replace the German-made Focus hatchback after 2025. While what alternative opportunities Ford will decide on remain to be seen, a few options include either selling the plant or repurposing it for other purposes.
The plant could have been used to build Ford’s new range of EVs, but that bid went to the plant in Valencia, Spain while the Cologne plant will take over production of Volkswagen MEB-based EVs from 2023 onward.
What this closure means for Ford in Europe
While it is the smaller of the two German-based production facilities, the Saarlouis plant is not insignificant in size or production capacity.
The Saarlouis plant was first established in 1970 and currently employs 4,600 workers, but those workers, along with the 6,000 employees in Valencia, have been anticipating job losses.
The Valencia plant currently builds both the S-Max and Galaxy minivans and the Kuga compact SUV. With the closure of the Saarlouis plant, it looks like the Valencia plant is preparing to be the new hub of Ford’s EV production in Europe.
It’s hard to draw conclusions about what this announcement means just yet, but it's becoming clear that a shift to electric fleets means that automakers must drastically reimagine every aspect of the production process, from start to finish.
Ford is investing in a sustainable future
While the Saarlouis plant may be closing for good, Ford still has big plans on the horizon. The American-made automotive company is
investing billions into producing electric cars
. Ford is also expanding production in other parts of the world, like the proposed Tennessee-based site that will span 3,600 acres and employ 5,800 workers.
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