Ford Secures Future of Valencia Plant with New Vehicle Model Allocation and Perte VEC II Commitment

Ford has made a commitment to keep the Almussafes factory in Valencia operational by assigning it a new passenger vehicle model. The decision was announced during a meeting with workers’ representatives and the European Works Council, as stated by UGT, the majority union at the plant.

The Almussafes factory had been producing only one manufacturing model, the Kuga, after stopping production of the Transit van on April 17. It is currently under a temporary employment regulation (ERTE) until May 19th. The assignment of a new model ensures the immediate future of the factory, which employs around 4,800 people.

Over the past six years, the Valencian plant has seen a significant decrease in production from almost 370,000 cars of five different models in 2018 to just under 212,000 cars last year. This drop of 42% was intensified by losing production of models such as Mondeo, S-Max and Galaxy. Despite being chosen to produce an electric vehicle platform starting in 2025 under Perte VEC II program Ford has been facing uncertainty regarding investments for electric vehicles at the plant.

The global management’s commitment to Almussafes comes at a time when the factory is operating under an extended temporary employment regulation file (ERTE) due to challenges with Kuga model production. The decision to assign a new vehicle model guarantees its viability for coming years and relieves both workforce and local automotive cluster.

The Valencian automotive industry represented by AVIA has welcomed news about new vehicle allocation and emphasized on clear dates and volumes are crucial for effective planning work of suppliers. Ford’s application for funding under Perte VEC II further signals a commitment to developing electric vehicles at Almussafes factory.