Ford is going to build its next-generation Fiesta exclusively in Cologne, Germany, for European consumers.
The automaker and the local Works Council agreed to work rules that will improve productivity and save at least $400 million a year through 2021. The deal also provides job security for about 24,000 employees, in part by in-sourcing some work now done by suppliers, Detroit Free Press reports.
The Cologne assembly plant will run on two shifts while a third shift will be added at the Cologne engine plant where Ford makes a 1-liter, three-cylinder EcoBoost engine.
Ford plans to launch at least 25 new models in Europe over five years. It has closed its plant in Genk, Belgium and two operations in the U.K. last year to cut annual costs by $450-500 million.
Source: Detroit Free Press
