Next Ford Fiesta to Remain in Cologne, Not Move to Romania
Ford confirms the next-generation Fiesta will continue production at its Cologne plant in Germany, dismissing speculation of a shift to Romania’s Craiova facility.
Ford has confirmed that the next-generation Fiesta will be produced at its Cologne plant in Germany, ending speculation that manufacturing might shift to Romania’s Craiova facility. The decision secures the future of the German plant, which has a long history with the Fiesta line.
Reports had circulated in early 2014 that Ford was considering moving part or all of Fiesta production from Cologne to Craiova to take advantage of lower labour costs. Some German media suggested that wage differences, around €5 per hour in Romania compared to ten times that in Germany, could save the company approximately €1,300 per car. This was seen as a potential response to Ford’s heavy losses in Europe, which reached $1.6 billion in the previous year.
Bernhard Mattes, head of the Cologne plant, told Wirtschafts Woche that discussions with the works council were progressing well and that the goal was to keep Fiesta production in Cologne at competitive rates. The company aimed to reach a conclusion within the year, maintaining the plant’s efficiency and output.
Why Cologne Remains Central to Fiesta Production
Cologne has been the main production site for the Fiesta for decades, supporting a skilled workforce and established supply chains. The decision to keep production in Germany reflects Ford’s confidence in the plant’s capabilities and its ongoing negotiations to ensure cost competitiveness despite higher German wages.
Ford’s Craiova plant in Romania continues to manufacture the B-Max and EcoBoost engines, but it will not take on the Fiesta as previously rumoured. The Romanian facility benefits from lower operating costs, but Ford appears to prioritise stability and experience at Cologne for its volume supermini.
Implications for German and Romanian Workers
The confirmation secures jobs at the Cologne facility, which had faced uncertainty during the period of speculation. Workers and unions had been concerned that a shift to Romania could lead to job losses or reduced output in Germany. For the Craiova plant, the decision means continued focus on existing models and engine production rather than expansion into Fiesta assembly.
Fiesta’s Role in Ford’s European Strategy
With the European car market having shrunk by more than 25 percent since 2008, Ford’s decision underlines the importance of efficiency and cost control. The Fiesta remains a core product for Ford in Europe, and its continued production in Cologne highlights the plant’s strategic importance. For more on the seventh-generation Fiesta’s model range and features, seeFord launches seventh-generation Fiesta with four distinct models.
