Revved-Up Dispute: 93.5% of Ford Workers in Cologne Strike Over Job Cuts
Laborers at Ford's facility in Cologne initiate walkout for the initial time
Update on the Cologne Ford Plants' First-Ever Strike
Fed up with job cuts and austerity measures, employees at Ford's Cologne plants have staged the company's first strike in almost a century. The protest, scheduled from Wednesday morning to Thursday morning's end-of-night shift, comes in response to management's plans to slash 2,900 jobs by 2027.
According to the IG Metall union, which represents 11,500 Ford employees in Cologne, the job cuts threaten the survival of the traditional Ford subsidiary in Germany. The union is advocating for a social tariff agreement that supports high severance payments and financial security for the workforce.
A Show of Support
The union's call to strike found a strong response, with 93.5% of IG Metall members at Ford agreeing to walk off the job. Benjamin Gruschka, Ford Germany works council chairman, stated emphatically, "It's high time the employer took action and forged a comprehensive solution for the Cologne workforce."
Ford's German management holds limited influence, as the company ultimately falls under the US parent company's authority. Recently, Ford withdrew a guarantee for its German subsidiary, increasing the pressure to compromise.
Industry Challenges
Ford has faced challenging times in Europe, with its passenger car division experiencing losses for years, despite successes in pickups and commercial vehicles like the Transit van. The iconic Ford Fiesta, once a significant sales success produced in Cologne, was discontinued in 2023.
Now, Ford produces two electric cars in Cologne, but sales have not surpassed expectations, leading to over €2 billion in investments remaining unrealized. According to official figures, Ford's share of new German vehicle registrations dropped from 5% in 2022 to 3.5% in 2024.
Industry Experts Weigh In
Experts predict a grim future for Ford's passenger car business in Europe. Ferdinand Dudenhöffer, director of the Bochum-based CAR institute, posits that Ford is too small to operate profitably in the passenger car sector in Europe. Alternatively, he suggests Ford could sell its European car business or form a joint venture with another manufacturer like Renault to increase sales volumes and lower costs, thus becoming competitive.
Stefan Bratzel, director of the Center of Automotive Management, proposes yet another solution: Ford could invest billions in electric vehicle production and brand enhancement at its US headquarters. Bratzel notes that Ford's planned electric car models in Cologne rely heavily on components sourced from Volkswagen, making the enterprise less appealing. Furthermore, Bratzel argues that Ford has been tardy and tentative in addressing the electric vehicle market.
The ongoing strike and broader restructuring efforts at Ford's Cologne plants underscore the challenges faced by the automotive industry in Europe, particularly in navigating the shift towards electric vehicles and adapting to changing market conditions. Long-term solutions will likely involve a combination of technological innovation, strategic restructuring, and negotiations with unions to ensure a sustainable future for the plants.
[1] ntv.de/mdi/dpa[2] Car and Automotive Research (CAR) Institute[3] Center of Automotive Management[4] IG Metall union
- The employment policy of Ford is under scrutiny as a result of the job cuts and austerity measures, leading to the first strike in almost a century at its Cologne plants.
- The automotive industry, alongside manufacturing, finance, and aerospace, is faced with challenges, particularly in Europe, as Ford's passenger car division experiences losses despite success in commercial vehicles like the Transit van.
- Business leaders, such as Benjamin Gruschka and Ferdinand Dudenhöffer, advocate for comprehensive solutions supporting high severance payments and financial security for the workforce in the community policy discussions.
- Careers in the sports and sports-betting industries may offer alternative employment opportunities for Ford workers in Cologne, as they navigate the industry's restructuring efforts and the shifting emphasis towards electric vehicles.
- Long-term solutions for the automotive industry, like the proposed joint venture with Renault, investments in electric vehicle production at Ford's US headquarters, and negotiations with unions, will ensure a sustainable future that aligns with the strategic restructuring and technological innovation required to adapt to changing market conditions.
