The Almussafes factory will manufacture the new Ford electric cars and ensure their survival.
Ford’s early moves in Spain faced a tough moment during the first oil shock of 1973, which risked curtailing the multinational plan based in Almussafes. Yet leadership from Ford Motor Company and the Spanish headquarters pushed through shareholder hesitations, launching an expanded Valencia operation in 1974 to produce a compact European model: the Ford Fiesta. The Fiesta quickly became a staple in Ford’s lineup, and the Valencia site grew into a broader production hub. Since March 1976, more than a dozen models rolled off the lines at the plant, including the Escort, the Hunter, the Ka, the Focus, Mazda2, the C-Max family, the Galaxy, the Mondeo, and the Kuga. These milestones helped cement Valencia as a major Ford manufacturing footprint.
One crucial factor behind the Valencia plant’s long-term success has been labor flexibility—the capacity to adjust shifts and assembly lines to produce several models simultaneously. This adaptability enabled the plant to manufacture up to five distinct vehicle versions at certain periods. In 2007, a majority union led by UGT reached a historic social stability agreement with Ford, safeguarding the plant’s future workload as Ford reassessed its European plant network. The agreement helped secure continued production in Almussafes during a period when some European sites were being dismantled, including operations in the United Kingdom and Brussels, and set the stage for a substantial capital investment.
Between 2011 and 2018, Ford invested roughly 3 billion euros to modernize the Valencia facility. The upgrades focused on updating production lines for the Kuga and adding a new engine plant, with a clear emphasis on exporting larger-displacement engines to North America. These improvements reinforced the plant’s role in Ford’s wider European strategy and underscored the importance of maintaining a robust manufacturing base in Spain. The modernization also aimed to bolster capacity for future electrification, aligning with Ford’s global transition toward electrified vehicles.
electrification process
Looking forward, Valencia’s union leadership has negotiated flexibility measures that are slated to take effect in 2025. These measures are tied to demand for new electric vehicles and the cadence of production as the company shifts toward electrification. The question of employment during this transition remains central. In the early 1990s, Almussafes directly employed about 10,500 workers, but adjustments—including a reduction in night shifts and several workforce cuts—reduced headcount to around 6,000. Output levels have also shifted, from more than 400,000 cars annually to roughly 162,000 in 2021, influenced by national economic conditions, microchip shortages, and pandemic-related shutdowns.
Future employment at Valencia will hinge on demand for electric models. Currently, the Kuga, available in hybrid and plug-in hybrid variants, accounts for more than half of Valencia’s production. Ford halted Mondeo production for the European market from the Valencia plant in late March, with some shifts redirected toward North American production and, later, to Europe in 2023. The Galaxy and S-Max are slated to run until March 2024; after that, the plant is expected to focus primarily on the Kuga. Engine families, including EcoBoost units of 2.0 and 2.3 liters, power the plant’s operations, with hybrids such as the PEHV configuration in the Kuga continuing to be a core component. The future of electric vehicle output will be a key determinant of direct employment at Almussafes.
providers
As head of the AVIA automotive cluster, Monica Cheerful notes that the association spans roughly 120 companies across the regional ecosystem, from metal mechanics and plastics to engineering, services, logistics, packaging, and consultancy. She emphasizes that Ford’s continued presence at Almussafes benefits the broader Valencian industry and strengthens the cluster’s overall activity. The AVIA network reported a collective turnover of more than 11.8 billion euros, representing around 11.24% of the Valencia Community’s total business turnover, and the cluster directly employs about 24,500 people. These figures reflect AVIA’s strategic plan for 2021–2024 and highlight the scale of regional manufacturing tied to Ford. Major suppliers located near Almussafes include Gestamp, Faurecia, Grupo Antolín, Autotrim, Magna, and Lear, all of whom are positioned to handle the next wave of electric vehicle demand and the associated workload increase.
The broader industry view remains positive, with the Valencia plant regarded as a critical driver of local economic activity. Ford’s operations are seen as a catalyst for development in the automotive supply chain, supporting both direct manufacturing jobs and the numerous related roles throughout the region. The path ahead for Almussafes will depend on market demand for electrified vehicles, supply chain stability, and the company’s ongoing investment in modernized production capabilities. The narrative of Valencia’s plant illustrates how a legacy manufacturing site can adapt to a rapidly changing automotive landscape, maintaining relevance through strategic flexibility, capital investment, and collaborative regional leadership. (AVIA, 2024)