Ford, a multinational group, informed the UGT union this afternoon that the electrification program at the Almussafes plant has been postponed. The move follows a slower than expected growth in the electric vehicle market, a factor the union has highlighted to its members. The change represents a departure from the plan previously agreed, according to the union’s assessment. A company spokesperson confirmed that the leadership is reassessing the electrification timelines for Almussafes, while stressing that the overall project is still moving forward. The company had already sought European funding through the second stage of the Electric and Connected Vehicle program, a scheme that allows allocations to be used up to 2028. In addition, the government recently granted 37 million for the battery assembly facility at the Almussafes site, part of an investment package valued at 188 million.
UGT expressed concern that the delay could threaten production in Valencia and across the European network. The union is pressing for an increase in hybrid vehicle output to secure workloads and safeguard jobs as long as electrification remains unclear and workloads could be at risk, with current estimates suggesting around 200,000 cars per year in jeopardy.
The company reiterates commitment to the Almussafes electric program, even as other deadlines loom
A photo caption notes the visit of a former Minister of Industry and Trade to the Ford Almussafes plant. This visit is reported by Levante-EMV.
UGT stance on the new location and electrification timelines
The union emphasizes the need for a final timetable to be put in place for electrification. Without clarity, flexibility negotiations could stall, according to the majority union that controls the works council. A December meeting is planned, with the union insisting that the company provide clear, decisive moves despite the current volatility of the moment.
There is a willingness to continue collaboration provided the company presents a clear plan. If Ford remains committed to advancing toward an electrified future and stops the cycle of indecision, the UGT says it will be ready to propose concrete solutions that support workers and the business alike.
The first tranche of funds and the second VEC application
Ford reportedly waived 106 million euros from the first VEC program last year as part of its plan to electrify the Almussafes factory after delaying the rollout of electric vehicles. The corporate request for the second VEC allocation was formalized mid-August. Specifics of that application were not disclosed, but the package includes a battery line project that contributed to the 188 million euro investment and the 37 million euro grant for the battery assembly facility. The rationale behind situating such facilities adjacent to manufacturing sites is to minimize logistics costs; a typical vehicle often requires between 200 and 400 battery cells to form a complete battery pack.
The announced postponement compounds tensions for Ford’s Valencia workforce, which faced significant reductions in the past year and a half during a competitive bidding process with another European plant. An agreement with the union previously brought salary adjustments and a major workforce reduction under what was described as an ERE, affecting roughly a thousand workers this year. There are concerns that further cuts could follow if production volume does not improve. Reports suggest another ERE affecting about 1,000 people could occur in 2024.
The future of Ford Europe under debate
The UGT argues that the slower pace of electrification could have consequences beyond Spain, affecting Ford’s entire European presence. The union has warned that the situation may trigger mobilizations and demands for answers, especially as Ford holds an agreement with UGT in Valencia. Ford’s management has argued that the market and customer demand will determine volumes while costs are kept in check. Critics note that Ford has historically been cautious about introducing new, ambitious models, and the current trend suggests a cautious approach to the rapid rise of electric vehicles. With Europe’s plants facing strategic recalibration, some speculate that regional investments could slow as the shift toward electrification continues to evolve across the continent.