Ford asks for German COVID-19 loan guarantees: Handelsblatt
BERLIN (Reuters) – Ford Motor FN, which operates two auto plants in Germany, has requested 500 million euros ($ 582 million) in German loan guarantees to cushion the impact of the COVID-19 pandemic, the Handelsblatt business daily reported Monday.
As Germany has given coronavirus aid to companies such as auto parts supplier Leoni LEOGn.DE, Ford would be the first major automaker in the country to receive such government assistance.
The auto sector, a key pillar of German industry, was struggling even before the pandemic due to the switch to electric vehicles and declining global demand.
Ford wants the federal government to provide most of the loan guarantees, while a smaller portion should come from German states, Handelsblatt said, without citing his sources.
The company said it was part of its normal business to be in contact with financial institutions, without providing further details.
The Economy Ministry declined to comment on the report.
Ford’s German subsidiary was founded in 1925 and operates factories in the western city of Cologne and in Saarlouis near the French border.
($ 1 = € 0.8598)
Reporting by Thomas Seythal and Tom Kaeckenhoff; Editing by Maria Sheahan and Mark Potter