Currently reading: Ford delays investment in Valencia plant set to produce future EVs

Decision means American firm is “unable to take advantage” of €106m relief funding from Spanish government

Ford has delayed planned investment in one of its biggest European factories, which is set to take centre stage in producing its next generation of electric vehicles.

The American firm cited a revised financial outlook for Europe in taking the decision yet reaffirmed its “commitment” to the site in Valencia, Spain – previously chosen over a rival facility in Saarlouis, Germany. Ford wouldn't go into further detail on this new outlook.

It comes just a few months after Ford announced the decision to invest in the Valencia site – alongside a $2 billion (£1.69bn) conversion of its plant in Cologne, Germany – as part of its plan to go EV-only in Europe from 2030, five years before the proposed ban on selling ICE vehicles in the EU. 

This investment would involve fitting the site with more automated assembly lines, which are a key part of EV manufacturing but require less human involvement. The Valencia site currently employs around 6000 workers, and Ford has warned that some jobs may go.

This latest decision comes with implications. Ford will miss out on an allocated €106 million (£89.4m) of post-Covid relief funding from the Spanish government.

Ford withdrew its application on Tuesday ahead of a deadline for potential changes, the relevant ministry told Automotive News Europe.

Ford kuga 2020 front quarter tracking

Ford has told Autocar that it now plans to work with Spanish authorities to pursue alternative funding for the plant, which is expected to commence production of new models based on the Volkswagen Group’s MEB platform from 2023.

Ford España doesn't anticipate any immediate job losses, although Ford confirmed the restructuring would result in staffing cuts. It's expected that some redundant staff will instead be retrained, given the ongoing skills shortage affecting the industry.

Ford also announced earlier this week that it would be dropping 3000 staff across Canada, India and the US.

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The Valencia facility currently produces cars including the Kuga SUV – the ninth best-seller in the UK thus far this year, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

Ford is targeting 600,000 annual EV sales by 2026. An electric version of its best-seller in the UK – the Puma crossover – is due in 2024, earmarked for production at a plant in Craiova, Romania. A medium-size electric crossover and a full-size electric SUV have also been confirmed for 2024, alongside four new electric vans in the Transit/Tourneo family.

Charlie Martin

Charlie Martin Autocar
Title: Editorial assistant, Autocar

As part of Autocar’s news desk, Charlie plays a key role in the title’s coverage of new car launches and industry events. He’s also a regular contributor to its social media channels, providing videos for Instagram, Tiktok, Facebook and Twitter.

Charlie joined Autocar in July 2022 after a nine-month stint as an apprentice with sister publication What Car?, during which he acquired his gold-standard NCTJ diploma with the Press Association.

Charlie is the proud owner of a Fiat Panda 100HP, which he swears to be the best car in the world. Until it breaks.

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