Ford (NYSE:F) revealed Thursday that a prospective investor for its Saarlouis plant in Germany has withdrawn their interest, leaving employees once again uncertain about the fate of the facility and their employment status.
A representative from the labor union expressed dissatisfaction and frustration regarding this development. They also mentioned that discussions with the company would resume on Monday regarding a collective bargaining agreement for workers who are concerned about their job security.
"This will be expensive for Ford," said union rep Joerg Koehlinger. "We will send a signal so that other companies will be afraid to flatten sites."
This setback coincides with ongoing negotiations between the company and the United Auto Workers in the United States, where a strike has been in progress for 21 days due to labor conditions.
The potential investor for the Saarlouis facility, who remained anonymous, had initially entered into a non-binding agreement in June of this year. However, a spokesperson has now stated that they have opted not to proceed with the negotiations.
Consequently, production of the current Ford Focus model at the Saarlouis plant is set to cease by 2025.
According to a report from Handelsblatt, had the agreement with the prospective investor materialized, it would have guaranteed employment for approximately 2,500 out of the current 4,500 workers at the Saarlouis facility.
Ford's statement on Thursday outlined an "alternative plan" that will preserve 1,000 jobs in Saarlouis. The plan may serve as a starting point for a future technology center at the site, although specific details were not disclosed in the statement.
Shares of F are down 1.13% in mid-day trading on Thursday.