In the ongoing struggle against climate change, the path to cleaner mobility is clear: electric vehicles will shape the future. Yet the shift comes with tough socioeconomic consequences. Ford announced plans to electrify its Almussafes factory in Valencia and, on Friday, revealed it would lay off at least 1,144 workers and halt production of two models, the S-Max and Galaxy, starting this April. The impact will extend beyond the plant, affecting the broader sub-industry and trimming regional demand by about 10 percent, including in Alicante province.
The carmaker has framed this as an Employment Regulation Dossier, a deep restructuring of its European operations and a workforce resizing in Spain to align with a lower electric-vehicle footprint. The layoff figure of 1,144 workers represents nearly one in five jobs at the Almussafes site, which employs around 5,750 people. This plan signals a broader realignment as the company adapts to a changing powertrain mix and supply chain needs.
Unions warned that negotiations will be intricate given the scale of the redundancies. Reaching an agreement that secures 100 percent voluntary retirement or other exit measures will be challenging. The announcement also raises concerns for the automotive supplier sector in the province, particularly in the Foia de Castalla region, where roughly 70 metal and plastic firms operate for this sector.
Héctor Torrente, director of the Ibi and Foia Entrepreneurs Association (Ibiae), underscored that the impact could be less severe than feared if a smoother transition is managed. He noted that companies have already observed a softer workload in recent weeks as Ford accelerates stock clearance in anticipation of model discontinuations. Still, this development is expected to reduce activity by an estimated 5 to 10 percent from the outset, adding pressure on the regional economy.
What concerns industry observers most is the period of transition between combustion engines and electric powertrains. Torrente pointed to 2026 as a tentative horizon, but warned that specific timelines and demand for spare parts remain uncertain. He emphasized that local firms have a track record of adapting to shifts in the market and can adjust to new realities if supported by targeted measures.
Ford estimates 2,400 job losses at Almussafes due to electrification
Luis Rodríguez, president of the Alicante State Metal Entrepreneurs Federation (Fempa), described the news as deeply troubling for an industry already facing a sales downturn and component shortages. He also noted customer uncertainty about choosing equipment in the transition toward electric mobility, but added confidence that supplier firms already have the capacity to adjust as electrification deepens and production stabilizes.
Alfredo Martínez, who leads the trade and engineering team at the Ibense firm Faperin, which makes plastic components for Ford among others, shared a cautious outlook. He emphasized that it will take time for electric-vehicle sales to reach the same levels as internal combustion models and that the shift will require a gradual adjustment across the supply chain.
Another source of optimism for local suppliers is the Sagunto battery gigafactory planned for 2026, a project that could help re-anchor battery-related demand in the region as automakers pivot toward new energy architectures.
Maroto on aid and employment protection
Industry Secretary Reyes Maroto acknowledged the gravity of Ford’s ERE and stressed that public support for the transition to electrified mobility must protect employment. Government officials signaled readiness to engage with unions to minimize disruption if the plan proceeds, while regional authorities reaffirmed their intention to honor existing agreements between workers and the company. These positions reflect a broader policy aim to balance climate goals with regional job preservation during the shift to cleaner vehicles, and they highlight the interplay between industrial strategy and labor protection during the energy transition. (Attribution: Ibiae, Fempa, and regional authorities)