Ford’s Almussafes layoffs tied to electrification plans spark regional worry
As the push toward cleaner energy accelerates, the move to electric mobility brings both opportunity and disruption. Ford plans to electrify its Almussafes plant in Valencia, a shift that will reduce the local workforce by a minimum of 1,144 positions and discontinue two models, the S-Max and Galaxy, starting in April. The impact reaches beyond the plant itself, with a projected drop in nearby workload of about 10 percent in neighboring areas such as Alicante province. This assessment comes from discussions within the local industrial community.
Behind this decision is Ford’s use of the Employment Regulation Dossier, known in Spain as the ERE, as part of a broad European restructuring effort aimed at aligning the workforce with a future powered largely by electric vehicles. With around 5,750 employees at Almussafes, the 1,144 job cuts represent roughly one in five positions. The plan is framed as a necessary step to reposition the plant within a changing auto industry landscape, cited by industry unions in statements about the process.
Unions warn that negotiations will be challenging given the scale of layoffs and the difficulty of securing agreements that maximize voluntary retirements and incentivized leaves. The effects are expected to ripple through the regional supplier network, particularly in the Foia de Castalla region, where roughly 70 metal and plastic firms support the auto industry. The broader ecosystem could face tighter margins and slower activity as Ford accelerates stock clearance in preparation for a halt in production. The situation underscores the fragility of a region deeply linked to manufacturing and automotive support services.
Héctor Torrente, director of the Ibi and Foia Entrepreneurs Association, notes that the consequences may be milder than initially feared but still meaningful. He points to potential parts shortages and a retreat in demand as Ford moves to deplete inventories in advance of the transition. He estimates that activity could fall by five to ten percent from the outset, emphasizing the unsettled nature of the shift. Torrente also highlights the transition period between combustion engines and electric vehicles as a critical factor in the near term. The timeline around 2026 remains unclear, and questions about future parts demand persist. Local companies have repeatedly demonstrated resilience and adaptability in the face of changing times, a trend that could shape how the region navigates this disruption.
The Almussafes operation sits at the heart of a broader regional debate about how quickly electrification should proceed and what it means for jobs and suppliers. The discussions reveal a tension between environmental goals and regional economic stability, especially for communities with deep ties to manufacturing and automotive support services. The regional economy is watching closely how this transition unfolds and what it means for the broader industrial base asking whether new opportunities will emerge as older capacity winds down.
Forecasts and reactions from industry figures
Luis Rodríguez, president of the Alicante State Metal Entrepreneurs Federation, described the development as troubling for an industry already contending with a sales dip and questions about the transition to electric mobility. He suggested the shift might be temporary as supply chains adjust, but the near-term impact will be felt by many suppliers who rely on a steady flow of components. The assessment comes from statements issued by industry associations representing equipment and machinery firms within the region.
Alfredo Martínez, head of the trade and engineering division at Ibense firm Faperin, noted that the long runway for electric vehicle sales to catch up with those of internal combustion engines complicates planning for component manufacturers who depend on multiple OEMs to sustain output. His cautious stance mirrors a common sentiment among suppliers who must balance investment with uncertain demand in the transition period.
There is also a thread of optimism tied to a forthcoming Sagunto battery gigafactory slated for 2026, seen by suppliers as a potential catalyst for renewed local manufacturing activity. The project is viewed as a possible driver of new demand for parts and services that can help bolter the regional supply chain through the electrification phase.
Industry and government voices weighed in after the layoffs were announced. A government spokesperson emphasized concern about the ERE and reiterated that public support for the transition to electrified mobility should hinge on preserving employment. The government signaled a commitment to collaborate with unions to minimize impact if the measures proceed. A regional official stressed the need to honor existing agreements while navigating the restructuring, highlighting the broader aim of maintaining stability for workers and communities. The discussions reflect a coordinated approach to managing disruption while pursuing the opportunities that electrification can offer.
The overarching question remains how quickly the region can adjust to electrification while preserving its industrial base. Analysts and business leaders agree that ongoing collaboration among manufacturers, suppliers, and public authorities will be essential to cushion the impact and position the region for opportunities in a more electrified mobility landscape. The discourse continues to center on the balance between pursuing environmental goals and sustaining regional economic vitality, with the focus on safeguarding livelihoods while encouraging resilience and adaptation across the sector.