FRANKFURT, Germany, July 11, 2025 (BSS/AFP) - US auto giant Ford had reached a deal with unions to bring an end to labour unrest at the carmaker's German plant in Cologne, workers' representatives said Friday. 

The two sides had agreed a deal that would extend an employment guarantee to more than 10,000 workers at the factory until 2032, the works council said in a statement.

"The overall package creates a safety net for everyone," said Benjamin Gruschka, head of the works council.

Ford would at the same time open a voluntary redundancy programme to bring down the headcount at the plant, which has suffered from weak demand for electric vehicles.

It was "too early to say" if the agreement would live up to employee expectations but "the most important thing is that we have a safety net that takes away workers' existential fears", IG Metall union official David Luedtke said.

The union welcomed the agreement with management at the carmaker but said the plant's long-term future "remained uncertain".

"Ford's strategic deliberations over Europe are still not finalised," the union said in a statement. 

The Cologne plant was hit by a strike in May after Ford announced 2,900 job cuts in Germany as part of plans to reduce costs across Europe and boost competitiveness.

The firm has spent $2 billion (2.3 billion euros) refitting the factory plant for electric vehicle (EV) production in anticipation of higher demand for low-emissions vehicles.

But EV sales in Europe have tailed off in the face of high up-front costs and sparse charging infrastructure.

In March, Ford rattled employees after the US parent withdrew a guarantee to offset losses at the German subsidiary, while at the same time as injecting 4.4 billion euros into the business.