Ford, once a major player in Europe, has been in a death spiral in that market, for several years. Their market share is down to 3.3%. The Focus is slated to be dropped this year, and the German plant that builds it closed. The Focus accounts for 20% of Ford Europe’s sales, so another big loss of market share is baked in. Ford doesn’t want to sell smaller models in the US anymore, so developing market appropriate models for the EU no longer has amortization help from US sales.
Ah. This article makes it clear what Ford is up to in Europe.
Currently, Ford has guaranteed all of Ford Europe’s liabilities. The cash infusion will replace that guarantee. So, as quickly as Ford Europe is insolvent, it can declare bankruptcy and turn out the lights. Ford is off the hook. Meanwhile, Ford is pretending there is a business plan for Ford Europe, to mollify the union.