Next generation Ford Fiesta to be made in Germany, not Romania image

The next generation Ford Fiesta will be made in Germany at Ford’s Cologne (Koln) plant and not in Romania as was previously reported by some media outlets.

“The talks are going well,” the head of the Cologne Ford plant, Bernhard Mattes told German newspaper Wirtschafts Woche.

“We can – and do so – produce very efficient in Cologne”.

“We lead the talks with the works council with the goal of producing the Fiesta at competitive rates in Cologne.”

“During the year we want to come to a conclusion.”

Last month, German newspaper Bild reported that Ford is preparing to transfer part of its Ford Fiesta production from Cologne, Germany, to its Romanian plant in Craiova, in 2017. The German magazine says the move is motivated by the massive losses the company supported in Europe after sales dropped and by the lower costs of labour in Romania.

According to a report from Frankfurter Allgemeine Zeitung, in Romania Ford pays about 5 euros / hour – about 10 percent of what the company pays in Germany. Therefore, in Romania the Fiesta model will cost Ford aprox. 1,300 euro less.

Last year, in Europe, the U.S  based automaker lost 1.6 billion dollars. Since 2008, the European car market fell by over 25 percent, the lowest level in over 20 years.

Ford Craiova currently manufactures the B-Max EcoBoost 1.0-liter and 1.5-liter petrol.