COLOGNE, Germany, June 10, 2014 – Ford Motor Company said today its assembly plant in Cologne, Germany, will be the single source for European production of the next-generation of Europe’s top-selling small car, the Ford Fiesta.
The announcement follows the signing of an innovative investment agreement between Ford and the Works Council that represents Ford employees in Germany. The agreement runs from 2017 through 2021 and is expected to yield at least $400 million in savings for Ford while providing employment security for Ford-Werke GmbH’s 24,000 employees.
“This agreement and our decision to build the next-generation Ford Fiesta in Cologne marks another important step in Ford of Europe’s transformation and underscores our commitment to invest in competitive vehicle production in Germany,” said Stephen Odell, president, Ford of Europe, Middle East and Africa. “We were able to negotiate collaboratively with the Work Council leadership to reach new levels of competitiveness in Cologne to match the plant’s already proven track record for quality and productivity.”
In Cologne, the agreement includes flexible working hours and work weeks, and other measures – including insourcing some operations currently provided by suppliers – that will make the plant more cost efficient, ensuring that next-generation Fiesta production will be globally competitive.
The changes allow Ford to move to a two-shift pattern with the start of production of the next-generation Fiesta to better adapt to fluctuations in demand. A third shift will be added at Ford’s Cologne engine plant to satisfy expected future demand for Ford’s 1.0-litre EcoBoost engine – International Engine of the Year for both 2012 and 2013.
The new agreement allows for unprecedented production flexibility for Ford in Germany, including the option of implementing additional daily shifts or reducing daily shifts under certain conditions to meet increases and decreases in demand. Similarly, working hours per shift also can be adjusted up or down by 30 minutes as needed.
“There is no question that our Cologne workforce is very skilled and produces the current Fiesta at the highest quality levels,” said Barb Samardzich, chief operating officer, Ford of Europe. “Now, this new level of flexibility allows us to optimise production and build in a much more efficient manner – in effect, creating a ‘breathing factory’ that can adjust to changes in market demand.
“We also will provide more skills training in key parts of the assembly plant to allow employees wider latitude to perform jobs across their work area, allowing for leaner and nimbler plant operations.”
It also was confirmed today that Ford’s engineering centre in Cologne will continue to be a key centre for the company’s global small car product development process. Ford also said it will add 500 permanent engineering positions in 2014 as it continues to deliver on the pledge to launch at least 25 new models in Europe over five years.
Ford’s Cologne assembly plant was awarded the Lean Production Award 2006 from business consulting agency Agamus Consult in co-operation with Automobilproduktion magazine for the previous generation Fiesta, and the 2009 Manufacturing Excellence Award from the Technical University of Berlin for the present generation Fiesta.
The Ford Fiesta is today the world’s best-selling sub-compact car*, and Europe’s top-selling small car and No.2 best-selling car overall**. In 2013, a Fiesta was sold in Europe every two minutes, and Cologne assembly also celebrated building its seven millionth Fiesta. Today, Fiesta cars built in Cologne are currently exported to more than 60 countries globally.
* According to Polk for the year 2013
** According to Jato Dynamics for April year-to-date 2014
Ford of Europe is responsible for producing, selling and servicing Ford brand vehicles in 50 individual markets and employs approximately 50,000 employees at its wholly owned facilities and approximately 69,000 people when joint ventures and unconsolidated businesses are included. In addition to Ford Motor Credit Company, Ford Europe operations include Ford Customer Service Division and 24 manufacturing facilities (13 wholly owned or consolidated joint venture facilities and 11 unconsolidated joint venture facilities). The first Ford cars were shipped to Europe in 1903 – the same year Ford Motor Company was founded. European production started in 1911.
About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 183,000 employees and 65 plants worldwide, the company’s automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford and its products worldwide, please visit www.corporate.ford.com.
