Ford chooses Valencia for its new electric car plant

Ford has announced it will build its next generation of electric vehicles in Europe at a plant in Valencia. This move is part of the company’s broader reorganization efforts.

The American automaker chose the site over a competing facility in Saarlouis, Germany. The company plans to have only electric cars on sale in Europe by 2030, which is earlier than the EU’s planned ban on the sale of new gasoline and diesel vehicles. There will be job losses as part of its transformation strategy, although the specific job cuts have not yet been detailed, a spokesperson told Reuters. Because electric cars rely more heavily on automated assembly lines, they require less human intervention. This means that factories that do not secure production orders for electric vehicles are at risk of closure when the EU ban on the sale of new petrol and diesel vehicles comes into effect in 2035. For example, 4,600 workers at the Saarlouis plant could lose their jobs. Even sites selected for electric vehicle assembly will see workforce reductions, such as the Valencia plant, which employs 6,000 people.

The company has several other factories in Europe, including one in Cologne, Germany, another in Turkey, and another in Romania. These have been chosen to produce electric vehicles. Starting next year, Ford will invest €1.5 billion in its Cologne plant to manufacture electric cars based on licensed Volkswagen technology. The Valencia plant will be responsible for producing all Ford vehicle models that utilize the company’s proprietary electric vehicle technology.

In the past, Ford has struggled to turn a profit in Europe due to intense competition among automakers. However, they have used electric vehicles as an opportunity to restructure their operations and create a leaner company. With a workforce of 50,000 in Europe, Ford has already eliminated 12,000 jobs. “To capitalize on electric vehicles in Europe,” said Stuart Rowley, president of Ford’s European division. However, the company’s global CEO noted that achieving such a transition will not be easy and will require difficult decisions. According to the Society of Motor Manufacturers and Traders (SMMT), electric vehicle sales in the UK have exploded in recent years, with more battery-powered cars registered in 2021 than in the previous five years combined. Electric car registrations have increased by more than 75 percent, from 108,000 in 2020 to 191,000 last year. They accounted for one in four cars sold last December, while Tesla’s Model 3 electric car was the second best-selling car in the country for the year.