Ford delays investment at the Almussafes plant in Valencia

The oval brand has delayed investment at the Almussafes plant in Valencia. The decision means the US company “cannot take advantage” of the €106 million government aid funds from the Spanish government. The manufacturer cited a revised financial outlook for Europe when making the decision, but reaffirmed its “commitment” to the Valencia plant, which had previously been chosen over a rival facility in Saarlouis, Germany.

This decision comes just a few months after Ford announced its decision to invest in Almussafes, together with a major investment at the Cologne plant in Germany. This is part of its plan to make the leap to full electrification from 2030, five years before the ban on internal combustion engine cars in the European Union.

This investment would involve equipping the plant with more automated assembly lines, which are a key part of electric vehicle manufacturing but require less human involvement. The Valencia plant currently employs around 6,000 workers.

Investment in Almussafes is delayed

The truth is that this manoeuvre could come with complications, as the oval brand could end up losing the €106 million allocation from the government’s post-Covid aid. As Automotive News Europe reported, “Ford withdrew its application on Tuesday ahead of the deadline for possible changes, the ministry said.”

In addition, the brand has indicated that “it now plans to work with the Spanish authorities to seek alternative financing for the plant, which is expected to begin production of new models based on the MEB platform of the Volkswagen Group from 2023.”

Ford Spain has not anticipated immediate job losses, although Ford confirmed that the restructuring could entail some cuts. The Valencia facility currently produces cars, including the Kuga SUV, the ninth best-seller so far this year, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

Ford aims for 600,000 electric vehicles per year by 2026. An electric version of the Ford Puma is planned for 2024, for production at a plant in Craiova, Romania. A mid-size electric crossover and a full-size electric SUV have also been confirmed for 2024, along with four new electric vans from the Transit/Tourneo family.