Ford sees ‘significant’ job cuts as it picks Spain for EV production

The Ford brand is seen on the North American Worldwide Auto Present in Detroit, Michigan, U.S., January 15, 2019. REUTERS/Brendan McDermid/File Picture

BARCELONA, June 22 (Reuters) – Ford Motor Co (F.N) mentioned on Wednesday it should begin producing electrical automobiles in Spain later this decade however that may suggest “vital” job cuts at its Spanish manufacturing facility and one other one in Germany amid its bold electrification push in Europe.

The U.S.-based carmaker mentioned in an announcement it had chosen its plant in Valencia as the popular website to assemble automobiles primarily based on a next-generation electrical automobile (EV) structure.

The opposite contender for the challenge was Ford’s plant in Saarlouis, Germany, which can proceed to supply its Focus passenger automobile solely by way of 2025, when automobile manufacturing will then cease, a spokesperson confirmed.

“We’re evaluating future website alternatives past that,” the spokesperson mentioned.

Workers in Valencia and Saarlouis have been informed that near-term restructuring will probably be required and that its measurement can be “vital”, a Ford spokesperson informed Reuters, with out elaborating.

Ford had earlier warned the shift to EV manufacturing would possible result in trimming its workforce as electrical vehicles require fewer labour hours to assemble.

Ford’s Valencia plant workforce is round 6,000 individuals whereas Saarlouis employs round 4,600.

Spanish union UGT referred to as the EV plant designation “nice information” because it ensures manufacturing for over a decade, whereas the plant had seen the output of earlier fashions lowered.

The UGT mentioned it anticipated EV manufacturing to start in 2025.

However the union mentioned in an announcement the EV push will suggest discussing with Ford how the workforce will probably be resized.

Ford in March introduced plans for seven new electrical fashions in Europe, a battery meeting website in Germany and a nickel cell manufacturing three way partnership in Turkey. learn extra

It mentioned in 2023 it will begin producing a brand new electrical passenger automobile at Germany’s Cologne plant, whereas an EV model of its Puma mannequin can be produced in Romania from 2024.

Germany’s Volkswagen (VOWG_p.DE) earlier this yr introduced it will begin EV manufacturing in Spain in 2025, and can open a battery manufacturing plant in Valencia.

Reporting by Joan Faus, further reporting by Ben Klayman, Inti Landauro and Tom Sims; modifying by Jason Neely and Jonathan Oatis

: .