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Ford applies for German coronavirus state aid, report says

FRANKFURT — Ford has used for five hundred million euros ($581 million) of German loan...

FRANKFURT — Ford has used for five hundred million euros ($581 million) of German loan ensures aimed at aiding domestic corporations strike by the fallout from the coronavirus pandemic, company day-to-day Handelsblatt reported on Monday.

The automaker has two generation areas in Germany. Ford builds the modest Fiesta modest hatchback in Cologne and the Emphasis compact hatchback in Saarlouis.

Ford would like the federal government to grant most of the loan ensures although a lesser share is expected to come from German states, Handelsblatt said. Ford had no quick comment.

Labor unions are anxious about the long term of the Saarlouis manufacturing facility right after the close of generation of the Emphasis in 2024.

“We know the day September 2024, but nothing much more,” said functions council chairman Markus Thal advised Automobilwoche, a sister publication of Automotive News Europe. The manufacturing facility employs five,three hundred persons.

While Germany has offered coronavirus-associated aid to corporations such as car elements provider Leoni, Ford would be the 1st main automaker in the state to get such enable from the government.

Prior to the coronavirus pandemic strike automakers, Ford was scheduling to eradicate about twenty per cent of the workforce across its European operations.

The automaker has struggled in the region’s crowded and mature market place for several years and it has been especially tough strike by falling vehicle revenue in the U.K. simply because of the uncertainty bordering the country’s exit from the European Union.

Ford’s passenger vehicle revenue in the EU, EFTA and U.K. fell 38 per cent to 401,722 in a market place down 33 per cent through August, in accordance to knowledge from sector affiliation ACEA.

Automotive News Europe contributed to this report