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ToggleFord's German Plant Suspends Production Due to Supplier Strike
Source: Gasgoo Author: Xing Yun
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According to foreign media reports, Ford’s factory in Saarlouis, Germany has suspended production due to a strike by nearby suppliers and interruption in parts supply.
Beniamin Gruschka, head of the plant’s works council, told the media that the strike would cost Ford about 1 million euros ($1.09 million) a day.
Some 500 IG Metall members from Magna Stanztechnik, Benteler, Tenneco, Rhenus LMS and Lear went on an indefinite strike on 8 March, forcing Ford to halt production of the plant’s only model, the Focus compact car.
Image source: Tasla
The strike affects deliveries of engine/gearbox components, axles, body parts, wiring systems and exhaust systems. Gruschka said production could resume “very quickly” after the strike ends.
A Ford spokesperson told the media on March 11 that the current production suspension is still continuing. The spokesman did not comment on the economic consequences of the shutdown.
Ford will stop producing the Focus at its Saarlouis plant next year, a move that will result in the elimination of 3,500 jobs at the plant. Ford will carry out electrification transformation in Europe and only sell pure electric vehicles locally.
Last month, Ford reached an agreement with workers at its Saarlouis plant that includes continuing to employ 1,000 workers through the end of 2032, paying workers severance and bonuses, establishing a transfer company and providing a qualification program for employees.
Later, the supplier’s workers demanded the same “attractive, well-funded” packages as Ford employees. IG Metal said the average age of employees at supplier companies is over 50 and they worry they will not be able to find other jobs.
Benteler said the company had made an offer and “substantially increased” it again last week. A spokesman for the company said: “Unfortunately, neither we nor the other affected businesses have received any concessions from IG Metall.”
Ford is looking for investors to take over its Saarlouis plant. Chinese automakers including BYD were reportedly interested but later scrapped their plans.