Ford’s Electification Delays and Global Cuts Reach Almussafes
The delays in Ford’s electrification plans at Almussafes have triggered concerns in recent days. The company maintains that these steps fit into its broader strategy and seeks support from Perte for the second Electric and Connected Vehicle program, a project seen as a future guarantee. Valencia plant workers are feeling the strain, with anxiety mounting as the situation becomes clearer. Yet this challenge is not a new setback for the Valencian industry. It is the latest in a sequence of difficult decisions Ford has made worldwide as the pace of electric vehicle deployment slows.
Before delving deeper, it is clear these setbacks also strike at the heart of the company founded by Henry Ford more than a century ago. Last week, Ford decided to scale back production capacity for what would be the first lithium ferrophosphate LFP battery plant in Michigan, United States. The investment was trimmed from 3.2 billion euros to just over 1.82 billion. The planned capacity of 35 gigawatt hours was reduced to 20 GWh, a third of the original target. The reduced scope reflects a slower market uptake for electric vehicles and a need to reassess long term commitments in battery production.
These reductions are not isolated to one region. In October, Ford announced a plan to cut or postpone roughly 11 billion euros in spending for the electric division. Alongside this shift, a second battery facility in Kentucky faced postponement, signaling broader retrenchment in the companys investment in electrification across North America.
The moves were not limited to the United States. Ford faced a softer market for electric vehicles and, as a result, slowed plans for a battery gigafactory in Turkey. A project initially announced with Korean partners LG and Koç, aiming at a substantial output, faced delays. The proposed plants were expected to eventually target significant production volumes, though concrete timelines became murky amid the broader caution around EV rollout.
Cutbacks Affecting the Mustang Mach-E
The European and American electrification programs have both seen restrictive steps in recent weeks. One notable example is the Mustang Mach-E, Ford’s fully electric performance SUV that had been predicted to play a key role in Almussafes’ electrification strategy. The vehicle had experienced a period of strong production early in the year, but softer sales in the market led Ford to reduce output and rethink forecasts for this model.
Meanwhile, the eagerly awaited electric Explorer, a cornerstone of Ford’s European operations and linked to the Cologne facility in Germany, has not yet reached the market. Its launch was pushed to summer 2024 and has faced repeated delays, underscoring the challenges facing Ford as it navigates a complex transition to electrification. The overall pace of electrification has faced several missteps and schedule slips in the recent period.