Ford’s Cologne, Germany plant is still sole maker of next-generation Fiesta

Article by Christian A., on June 16, 2014

Ford will still build the next generation Fiesta in Germany following an agreement with the works council. Ford inked an agreement that will cut the number of shifts from three to two at its vehicle assembly while increasing the frequency of shifts at its engine production to three.

While the agreement -- which covers all of Ford’s 24,000 Ford employees in Germany – entails a vow not to cut jobs, the carmaker could reap up to $400 million in savings on production costs from 2017 through 2021.

Stephen Odell, Ford’s head of Europe, said in a statement that the production of the Fiesta in Cologne underscores the carmaker’s commitment to invest in competitive vehicle production in Germany.

Ford said that full shifts can be introduced on a daily basis, adding that shifts could also be cut or extended by 30 minutes according to demand. Ford will also have its employees carry out functions currently provided by suppliers to make the Cologne facility more cost efficient.

Barb Samardzich, COO of Ford of Europe, remarked that they wanted to make the “Fiesta profitable in Cologne,” saying that the “breathing factory” would make the site “globally competitive.”

Ford’s decision to still build the Fiesta in Cologne should stave off worries that its output would be shifted to Romania, which boasts of labor costs around a tenth of those in Germany.

Ford is planning to return to profit in Europe next year, and will close three sites in the region by the end of 2014 to cut costs and trim its losses. Ford chief executive Alan Mulally said last month that the carmaker’s operations in Europe are “on track” for the turnaround, with losses for this year seen to shrink from the $1.6 billion logged in 2013.

If you liked the article, share on:

Comments

Recommended

While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 2017
It seems that BMW’s high-performance division -- BMW M – still has not warmed up to front-wheel drive vehicles. So those who had been looking forward to BMW M vehicles...
by - October 22, 2017
Porsche already has the Performance Package for their range-topping Macan Turbo, which is currently available in some countries. Soon, this model will be dethroned by something even fancier by the...
by - October 22, 2017
After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries