Ford faces significant job cuts at Almussafes amid push toward electrification
As the world pivots toward electric mobility to combat climate change, the shift brings broad economic repercussions that go beyond factory walls. Ford announced plans to electrify its Almussafes plant in Valencia, outlining a restructuring that includes the layoff of at least 1,144 workers and the suspension of production for the S-Max and Galaxy models starting this April. The implications extend beyond the facility itself, potentially triggering a ripple effect across the local sub-industry and reducing regional workload by about 10 percent, with Alicante province already feeling the impact.
The automaker has framed this as an Employment Regulation Dossier, signaling a deep reorganization of its European operations and a downsizing of Spain’s workforce in response to a forthcoming electric mobility era. The figure of 1,144 workers represents nearly one in five jobs at the Almussafes plant, which employs about 5,750 people. This move aligns with Ford’s broader strategy to adapt to a future where electric propulsion becomes more prevalent and parts sourcing and production processes shift accordingly.
Unions warned that negotiations will be complex given the scale of layoffs. They stressed that achieving 100 percent voluntary departures through retirement schemes and incentive leaves will be challenging. The news is likely to affect the surrounding automotive supplier sector, especially in the Foia de Castalla region, where roughly 70 metal and plastic companies service the local automotive ecosystem.
Héctor Torrente, director of the Ibi and Foia Entrepreneurs Association, emphasized that the impact might be less severe than feared if countermeasures are effectively implemented. He noted that companies have already experienced a lighter workload recently due to Ford accelerating the drawdown of stock parts in anticipation of model stoppages. Still, the outlook remains somber, with activity potentially dropping 5 to 10 percent from the outset.
The concern centers on the transition period between combustion and electric vehicles. Torrente pointed to uncertainties about timing, saying the 2026 horizon is not a fixed target and the precise path remains unclear. He added that demand for spare parts will be an important factor, and the region has a track record of adapting to shifting times through collaboration and resilience.
Ford estimates 2,400 job losses at Almussafes due to electrification
Luis Rodríguez, president of the Alicante State Metal Entrepreneurs Federation, described the development as deeply troubling for an industry already facing demand volatility and supplier challenges during the transition to electric mobility. He cautioned that sales declines and questions from customers about technology choices compound the pressure on the regional supply chain. At the same time, Rodríguez expressed confidence that the reduction in production at the Almussafes plant will be temporary, highlighting the industry’s broader shift toward electrification as a long-term trend.
Alfredo Martínez, who leads the trade and engineering department at Ibense firm Faperin, which produces plastic parts for various car brands including Ford, shared a cautious view. He expects it will take a substantial period before electric vehicle sales reach the level of internal combustion engine vehicles, underscoring the need for patience and strategic collaboration with suppliers during the transition.
Another source of cautious optimism for the supplier network is the promise of a Sagunto battery gigafactory slated for 2026, which could help stabilize demand for component parts and provide a regional anchor during the shift to electrification.
Maroto on employment safeguards during transition
Industry Secretary Reyes Maroto weighed in after the layoffs were announced, underscoring the government’s concern about maintaining employment during the move to electrified mobility. She noted that public assistance for the transition would depend on safeguarding jobs and indicated that support would be extended to unions to help minimize the impact should the measures be confirmed. Aitana Mas, a spokesperson for the Consell, echoed the commitment to uphold agreements between unions and companies while acknowledging the anxieties surrounding the ERE.
These developments highlight a broader regional challenge: balancing the pace of electrification with the health of local industries and employment. The coming months will test the ability of manufacturers, suppliers, and policymakers to align incentives, investments, and workforce retraining to ensure a smoother transition for workers and communities that have long relied on traditional automotive production.
In the broader context, the Almussafes situation serves as a case study in how large manufacturers manage the social and economic dimensions of energy and mobility transitions. It underscores the need for clear timelines, robust support for affected workers, and strategic partnerships across the supply chain to maintain regional vitality as smarter, cleaner vehicles become the standard.
Cited references and local industry perspectives remain essential to understanding the full impact of Ford’s plan on Almussafes and surrounding communities. (Cited: Ibiae, Fempa, and regional economic development stakeholders)