Ford is reportedly negotiating with BYD about selling its production plant in Germany, per people familiar with the matter. Apparently, up to 15 distinct investors are interested in the property, including the Chinese EV and battery giant.
Reports claim that Ford’s German management will travel to China next week to discuss the sale of its Saarlouis plant. The mentioned plant is an ICE vehicle production facility for Ford Focus, which is set to officially close by 2025.
Unfortunately, neither of the two companies commented on the report from the Journal. Likewise, the automaker has also yet to disclose the selling price.
“We’re investigating various options for the future and sustainable use of the Saarlouis site. As part of this process we are in ongoing discussions with a number of potential buyers and have nothing further to add at this time.”
Ford spokesperson
Ford’s electrification efforts
This significant move is part of Ford’s broader strategy to aggressively expand its European electrification programs.
In fact, Ford has just announced plans to lay off about 3,200 non-EV workers, mostly in Germany. It triggered Germany’s IG Metall union to fight back, threatening the automaker to launch necessary action if the job cuts were pushed through.
In North America, Ford’s Blue Oval electrification strategy is much more promising than in Europe, with a vast number of new job prospects. The automaker upgraded aging facilities like “the Rouge” in Michigan and established new battery production locations as well as two enormous new assembly plants in Tennessee and Kentucky.
Furthermore, Ford will commit an additional $8 billion to its “ionboost” battery technology in addition to a $22 billion investment in its global electrification by 2025.
Expectedly, Ford’s European division is in for challenging years. As of now, the sale negotiations are still in the early stages, and a deal could eventually fall through.
