Ford is delaying its production investments in Spain, citing a "revised outlook for Europe." It will remain committed to its plant in Valencia on the eastern coast.
On Wednesday, Ford said it will not ask for a some of Spain's EU pandemic relief funds to invest in its rollout of EVs by June 2025, and also said it will work with the authorities to identify other potential public funding as it moves to an all-electric fleet of passenger vehicles in Europe by 2030.
The news comes shortly after an announcement in June saying Ford will build its next-generation electric vehicles in Valencia.
Ford did not give further details on its revised outlook for Europe. Ford will have to cut about 3,000 salaried and contract jobs, mostly in North America and India.
Pending further announcements, no jobs will be cut at its plant in Valencia. Because electric cars require a longer assembly time, however, Ford maintains its chorus that there will be some restructuring of its workforce.
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.
"The Spanish government maintains its commitment to support Ford in its current and future investments in Spain," the Industry Ministry said in a statement.
Last May, Ford applied for Spain's EU pandemic relief funds and had been allocated 106 million euros in a first provisional allotment. On Tuesday, though, Ford withdrew its application ahead of a deadline for potential changes, the Ministry said.
The company picked the Valencia plant over its factory in Saarloius, Germany, for its latest EV investment. In June, the manufacturer said it has no plans to replace production of the Focus compact car at Saarlouis in 2025. Instead, the automaker said it will seek "alternative opportunities" for the Saarlouis factory, including selling it to another automaker.
Ford plans to launch seven full-electric vehicles in Europe including three new full-electric passenger cars and four new electric vans.
The first new EV will be a midsize crossover that will go into production at Ford's factory in Cologne, Germany, before December 31st. It will use Volkswagen Group's MEB electric platform that underpins the VW ID.4 (among other VW Group models).
Ford will build an electric version of the Puma crossover in Craiova, Romania, along with Transit Courier and Tourneo Courier electric vans.