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Ford delays Spanish investments, citing 'revised outlook for Europe'

Published 08/24/2022, 08:29 AM
Updated 08/24/2022, 09:01 AM
© Reuters. FILE PHOTO: Ford cars are on sale at a dealership of Genser company in Moscow, Russia, February 14, 2017. REUTERS/Maxim Shemetov

By Joan Faus

BARCELONA (Reuters) -Ford said on Wednesday it is delaying its production investments in Spain, citing a "revised outlook for Europe" but said it remained committed to its plant in Valencia, where it announced plans in June to produce electric vehicles (EVs).

The U.S. carmaker said in a statement it will not ask for a share of Spain's EU pandemic relief funds to invest in the roll-out of EVs by June 2025, but said it will work with local authorities to identify other potential public funding as it moves to an all-electric fleet of passenger vehicles by 2030.

Ford did not give further details on its revised outlook for Europe. It said earlier this week it will cut a total of 3,000 salaried and contract jobs, mostly in North America and India.

No jobs will be cut at its plant in Valencia for now, a Ford Spain spokesperson said, although the carmaker has long said there will be some restructuring of its workforce as electric cars require fewer labour hours to assemble.

Both UGT union and Spain's Industry Ministry played down the investment delay, noting that it does not affect Ford's plan to produce EVs in Spain.

© Reuters. FILE PHOTO: Ford cars are on sale at a dealership of Genser company in Moscow, Russia, February 14, 2017. REUTERS/Maxim Shemetov

"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 euros in a first provisional allotment, but withdrew its application on Tuesday ahead of a deadline for potential changes, the Ministry said.

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