FRANKFURT (Reuters) -Ford Motor will inject up to 4.4 billion euros ($4.76 billion) into its struggling German unit as it tries to revive its car business in Europe, the U.S. carmaker said on Monday.
The German arm, Ford-Werke, will continue its strategic transformation initiatives, focusing on reducing costs in Europe and increasing competitiveness, Ford said in a statement, after the Financial Times first reported the news.
“By recapitalizing our German operations, we are supporting the transformation of our business in Europe and strengthening our ability to compete with a fresh product portfolio,” said John Lawler, vice chair of Ford Motor Company.
“To build a sustainable business in Europe, we also need to continue to simplify our governance, reduce costs, and drive efficiencies.”
He called on policymakers in Europe to come up with a clear agenda to promote the uptake of electric vehicles and bring emissions targets in line with consumer demand.
Europe’s car industry has seen plant closures and falling demand as it battles with stiff competition from China. The sector is also bracing for U.S. tariffs.
($1 = 0.9249 euros)
(Reporting by Shivansh Tiwary in Bengaluru and Christoph Steitz in Frankfurt; Writing by Rachel More, Editing by Mrigank Dhaniwala and Miranda Murray)
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