Ford has decided to delay the planned investments for its vehicle production center in Spain. After updating its forecasts for the European market in light of the new economic context in which we find ourselves, Ford will delay these investments aimed at manufacturing 100% electric vehicles.
Very turbulent times are on the horizon for the automotive industry in Europe. And it is that, to the current challenges with which the sector must deal, we must add the economic perspectives in the short and medium term. Inflation, rising prices of raw materials and, ultimately, the prevailing uncertainty, have made car brands have to get down to work and update their strategic plans. Ford has decided to put on the belt and, faced with a more than likely complicated scenario, it will delay some important investments. Specifically, some investments destined for Spain.
Ford has decided to delay Spanish investments for the manufacture of electric vehicles. Pointing to the “revised perspective for Europe”, the blue oval company will delay for a certain time the start-up of the investments that will allow the manufacture of electric cars in its production center located in Almussafes, Valencia.
Ford’s commitment to its plant in Valencia
This is a hard blow for the Spanish automotive industry. However, Ford makes it clear that it remains committed to its plant in Valencia. A factory in which two 100% electric vehicles will be manufactured. These investments, which were officially announced last June, are very important since they come to guarantee the future of the facilities.
Ford has made the decision to waive part of the PERTE funds for the automobile. Some funds that were originally going to be used for the modernization of the facilities in Valencia and adapt them to the manufacture of these new battery electric vehicles. By renouncing this source of financing, Ford will work with local authorities to find other options.. Therefore, and as long as another way of financing the investments is found, these electric vehicle manufacturing plans will be delayed. It is not entirely clear for how long and if it will affect the models that are on the agenda.
The brand has not gone into detail about its revised outlook for Europe. However, we must start from the basis that just a few days ago it became known that Ford intended to carry out 3,000 layoffs worldwide. Most of the affected employees are located in North America and India.
Ford’s electrification process in Europe
Ford continues in its process of transition to electric car in Europe. A transition process in which Spain, and more specifically the Valencia factory, is called to play a leading role. A spokesman for the Spanish subsidiary of the brand has indicated that at the moment there are no plans to eliminate jobs in the production center. Despite this, it is not ruled out that some type of restructuring will be carried out in the future.
From the Ministry of Industry, Commerce and Tourism, the commitment of the Government of Spain to support Ford in the manufacture of electric vehicles has been pointed out: «The Spanish Government maintains its commitment to support Ford in its current and future investments in Spain» .
Font: Bloomberg