Ford revises plan for Europe, Valencia plant

FORD said it is delaying production investments in Spain citing a “revised outlook for Europe” but says it remains committed to its Valencia, Spain, plant.

The manufacturer said it will not ask for a share of Spain’s EU pandemic relief funds to invest in the roll-out of electric vehicles by June 2025, but that it would work with authorities to identify other potential public funding of its operations as it moves to an all-electric passenger vehicle fleet in Europe by the end of the decade.

In June, Ford said it will build its next-generation EVs at its Valencia plant but has yet to provide further details on its revised European outlook.

The news comes the same week as the Blue Oval announced 3000 salaried and contract job cuts globally and the axing of 120 engineering and development positions in Australia.

Ford says it has no immediate plans to cull jobs at its Valencia plant but cautions there will be some restructuring of its workforce as electric cars require fewer labourers to assemble.

Both the UGT union and Spain’s Industry Ministry have downplayed the investment delay, nothing that it does not affect Ford’s plan to produce EVs in Spain. Ford chose the Spanish site over its Saarlouis plant in Germany which is now for sale to another manufacturer.

"The Spanish government maintains its commitment to support Ford in its current and future investments in Spain," the Industry Ministry said in a statement.

Ford had applied in May for Spain's EU pandemic relief funds and had been allocated €106 million ($A152.6m) in a first provisional allotment. Ford withdrew its application this week ahead of a deadline for potential changes, the Industry Ministry said.

Ford plans to launch seven battery electric vehicles in Europe by as early as 2024. The BEV range is expected to comprise a medium-sized SUV that will be produced at Ford’s Cologne plant in Germany this year – using Volkswagen MEB architecture at its core – and an electric version of the Puma small SUV that will be built at its Craiova facility in Romania.

Ford’s Romanian facility is also slated to produce a range of electrified light commercial models, including the Transit Courier and Tourneo Courier.

With Automotive News Europe.