Ford Motor which operates two auto plants in Germany, has applied for 500 million euros ($586.79 million) of German loan guarantees aimed at seeking protection against the impact of the COVID-19 pandemic, business daily Handelsblatt reported on Monday.
While Germany has provided coronavirus-related aid to companies such as auto parts supplier Leoni. Ford would be the first major automaker in the country to receive such aid from the government.
About 290,466 people in Germany have been confirmed as being infected with the coronavirus. The virus has killed 9,556 people in the country.
The auto sector, one of the key pillars of the country’s industry, was having a hard time even before the pandemic due to the shift towards electric vehicles and lower global demand.
Ford wants the federal government to grant the majority of the loan guarantees, while a smaller share is expected to come from German states, Handelsblatt said, without mentioning its sources for the information.
The company said it was part of its normal business to be in contact with financial institutions, without offering more details.
The economy ministry refused to comment on the report.
Ford’s German subsidiary was founded in 1925 after Professor Hugo Junkers, noted for his work in aviation and anti-militarism, invited Henry and Edsel Ford to see his plant. Ford runs plants in the western city of Cologne and in Saarlouis close to the French border.
