Today, Friday, the employees will be informed about the future of the plant at a works meeting.
(Photo: dpa)
Dusseldorf The car manufacturer Ford has found a deal for its Saarlouis site that paves the way for the sale of the plant. “After intensive negotiations with a major investor, Ford and the Saarland government have signed the first agreements,” explains Germany and Europe boss Martin Sander in a statement available to the Handelsblatt. This is “an excellent basis for further negotiations” with the potential to create around 2,500 jobs in Saarland.
The agreement is a letter of intent – a so-called Letter of Intent (LoI) – that both Ford and the Saarland government have concluded with the potential buyer. At the moment there is a works meeting at which the Ford workforce at the site will be informed.
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However, it should initially remain unclear who the potential buyer is, the parties have agreed not to disclose the deal. The prospective buyer could jump off if his name becomes public, fears in the Saar. “That would be devastating,” said someone with knowledge of the details of the deal. For this reason, Ford is still in talks with other potential investors.
A letter of intent is a written declaration of intent that is not legally binding and can therefore easily be withdrawn. With the LoI, however, “a good foundation” was created for further negotiations, according to negotiating circles.
The usual steps after a letter of intent are a preliminary agreement – “Memorandum of Understanding” – and finally the final paper. Insiders expect the deal to be finalized this year and the plant to be sold. Originally, a directional decision for the location with its 4,500 employees was supposed to be made in the spring.
Ford plant in Saarlouis: Head of Germany booed at works meeting
Time is of the essence for Ford. Exactly one year ago, the carmaker announced that it would close its production facility after the Spanish Ford plant in Valencia was responsible for the production of a new electric platform. The compact car Focus is currently still being built in Saarlouis, but it will be over in 2025.
In order to ensure seamless continued operation, a speedy conclusion of a contract for the site is absolutely necessary. Employee representatives have therefore been pushing for clarity for some time. So far, Ford has pledged to keep around 1,000 jobs at the site. However, this promise would become invalid if the work as a whole changed hands. After that it looks up to date.
On Thursday last week, Germany boss Sander announced at a works meeting that an agreement was on the home stretch and that the new investor could create up to 2,500 jobs in Saarlouis. This statement was apparently not enough for those present. They vented their displeasure, according to media reports, employees booed Sander, and the meeting was canceled.
Investor for Ford in Saarland: BYD there, but probably not a favorite
The IG Metall union had even announced a ballot for a warning strike for Wednesday, but the industrial action was suspended for the time being. In the meantime, the employee side had first gained an insight into draft preliminary agreements and rated them positively. “There is movement in the matter,” said works councilor Markus Thal in a video message on Tuesday, in which he called off the warning strike for the time being. “Reliable results” are expected shortly. These are now there with the LoI.
In addition to the timing, it remains unclear who will take over the traditional location in Saarland, where Ford has been producing cars since the 1970s. According to information from the Handelsblatt, one of the candidates with whom talks were last held is the Chinese car manufacturer BYD. However, the company should not be the current favorite.
According to the Bloomberg news agency, in addition to BYD, a group of smaller Chinese car manufacturers are also said to be interested in the Ford location in Saarland. A deal with a Chinese investor is likely to get politicians on the scene: the federal government around Chancellor Olaf Scholz (SPD) is currently doing a lot to reduce economic dependence on the People’s Republic and thus make supply chains in this country more resilient. A battery recycling plant on the site is also being discussed as a further scenario for Saarlouis.
A major investor is seen as Ford’s preferred solution. Financial circles are talking about an e-mobility provider. Another person said that none of the shortlisted buyers came from Europe. Overall, Ford is said to have spoken to about 30 investors.
Ford has implemented massive cuts due to the transformation to electromobility. In Europe alone, 3,800 jobs are expected to be lost in the coming years, most of them in Germany and Great Britain. This week, The Wall Street Journal reported that 1,000 employees will lose their jobs in North America in the next few months. This year alone, Ford expects restructuring costs of up to two billion US dollars (1.84 billion euros).
Assistance: Arno Schütze
More: Ford plant in Saarlouis: New investor could create 2500 jobs.