Ford to Keep Fiesta Production in Germany

Ford to Keep Fiesta Production in Germany

Ford will maintain production of the current model of the Fiesta as well as future versions of the car in Cologne rather than transfer it to a lower-wage country.

FRANKFURT - Ford (IW 500/8) said Tuesday it will continue to manufacture its Fiesta compact car in Cologne, Germany, beyond 2016 after months of negotiations with employees.

Ford said in a statement it will maintain production of the current model of the Fiesta as well as future versions of the car in Cologne rather than transfer it to a lower-wage country.

In addition, the car maker extended for another five years a job guarantee for the site's 24,000-strong workforce.

In return, it was agreed with unions that costs would be cut by $400 million (295 million euros) between 2017 and 2021 via more flexible working hours and cuts in bonuses.

The announcement will come as a relief for workers who had feared a possible closure of the plant following the decision to shut down plants in Belgium and Britain in the face of Ford's 1.6-billion-euro loss in Europe.

Copyright Agence France-Presse, 2014

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