Ford is investing billions in Europe as it struggles to keep pace with the wave of Chinese and other low-cost EVs hitting the market. With another 4.4 billion euros ($4.8 billion) in funding, Ford looks to turn things around, but itβs also calling on lawmakers to do more.
Ford injects billions in Europe to fight Chinese EVs
With βsignificant lossesβ over the past few years, Ford is restructuring its business in Europe as it aims to cut costs and simplify operations.
Back in November, the American automaker said it planned to cut another 4,000 jobs in Europe by 2027, blaming βlower-than-expectedβ demand and mounting pressure from new EVs entering the market, including Chinese brands like BYD and SAICβs MG.
Ford announced plans to invest another 4.4 billion euros ($4.8 billion) on Monday to support its transformation. The funds will be used to reduce the growing debt at its German subsidiary, Ford-werke GmbH.
In a statement, the company said the new capital injection will help reduce debt at Ford plants in Germany and fund a multi-year business plan. Fordβs German unit has about 5.8 billion euros ($6.3 billion) of debt.
Ford Motor Companyβs vice chairman, John Lawler, explained, βWith the new capital for our German subsidiary, we are driving the transformation of our business in Europe and strengthening our competitiveness with a new product range.β
Lawler stressed the need to βsimplify our structures, reduce costs and increase efficiencyβ if it wants to compete. He added that Europe needs βa clear political agendaβ to promote EV adoption that aligns with consumer demand.
Over the past few years, Ford has invested heavily in Europe to better compete, including $2 billion to upgrade its Cologne manufacturing plant to produce EVs.
The plant builds two models, Fordβs electric Explorer and Capri. Although Ford revealed its fourth EV for Europe (including the Mustang Mach-E) in December, the Puma Gen-E is being built in Romania.
Electrekβs Take
Can Ford spark life back into its European business? Itβs not the only one struggling to keep up with new competition, Volkswagen is also cutting jobs in its home market and is even considering closing plants.
Legacy automakers, like Ford and Volkswagen, have been caught off guard by Chinese EV leaders like BYDβs aggressive expansion overseas to drive growth.
According to Jato Dynamics, Chinese brands are quickly gaining traction in Europe. In January 2025, 37,134 Chinese vehicles were registered, a 52% increase from the previous year. During the same time, Chinese brandsβ market share grew from 2.4% to 3.7%. Combined, it would now put them ahead of Ford.
