Ford Saarlouis Plant: Investor Deal Collapses, Thousands of Jobs in Immediate Danger

Germany's CEO Martin Sander avoided direct confrontation with the Ford employees. According to reports, there were whistles and boos for Ford's labor director Rainer Ludwig, who delivered the news during the meeting. Representatives of the Saarland state government, including Prime Minister Anke Rehlinger, were also present, and the atmosphere was heated according to some participants.

"The talks with the anchor investor have come to an end and will not be continued," Sander announced to the Handelsblatt. "I know this is disappointing for the workforce and for all of us."

The planned deal with the major investor would have secured up to 2,500 jobs in the region. Currently, 4,500 employees work for Ford in Saarland, and another 1,500 jobs are dependent on the plant. Sander explained that negotiations with social partners will now be conducted to find a future solution for the site.

Valencia instead of Saarlouis

The decision to produce the next generation of electric cars not in Saarland, but in Spain, led to the closure of the Saarlouis plant and had already caused unrest in the summer of 2022.

Works council chief Markus Thal was dismayed by the setback. The plan had been to continue building vehicles at the plant with around 3,000 employees and to accompany the transformation to e-mobility together with the supplier companies from the supplier park. After all, according to Thal, there should be further discussions. The works council is now focusing on negotiations for a social plan to mitigate the impact of the plant closure on employees. The IG Metall union is also planning further steps to defend the interests of the employees.

Deal fell through at the last moment

At the end of June, Germany’s country head Sander reported on concrete agreements with an investor at the location. A Memorandum of Understanding was to be signed by September 30. According to Sander, this binding preliminary contract did not materialize after a feasibility study by the interested party. Well-informed circles suspect that the interested party could either be the Chinese automobile companies BYD or Chery, both car manufacturers are said to show great interest in setting up vehicle production in the heart of Europe.