Overview of Ford Almussafes Performance and Upcoming Electrification
Ford Almussafes is anticipated to finish 2022 with a healthier operational tone than the prior year. The GE2 platform award, which will enable all-electric vehicle production at the facility starting in 2026, is set to contribute a significant boost to productivity. Despite ongoing supply chain challenges requiring the continued implementation of the Temporary Employment Regulation File, also known as ERTE, the factory is projected to close the year with a total output of about 245,500 vehicles, a rise of roughly 45.7 percent from the previous year according to insiders familiar with the plant’s status. This forecast also surpasses the 2020 record of 235,400 units, though it sits above a trough of approximately 168,000 units observed earlier in the cycle. (Source: Plant leadership brief)
Even with pressures stemming from the Ukraine conflict, the Valencia plant’s performance remains notable. Industry observers note a meaningful uptick in the automotive sector, especially as estimates from industry association Anfac suggested a modest growth trajectory for the year, with anticipated totals nudging from the 2 million vehicles recorded in 2021 to around 2.2 million by year-end. (Source: Anfac quarterly report)
Within Spain, Valencia’s plant development appears poised to outpace the broader automotive sector, which has faced multiple production reductions in recent months. Other Valencian sites, and facilities at Vigo, Figueruelas, and Martorell have also weathered similar pressures. Ford’s own drop in productivity in 2021 was about 28.4 percent lower than 2020, while the national average decline was around 7.5 percent for the same period. (Source: industry performance data)
Kuga extracts data
The ongoing improvement at the plant centers around its flagship model, the Ford Kuga. More than six of every ten vehicles produced at Valencia in recent periods have been Kuga models. Its strong demand has helped ensure that the Kuga led the market as a top-selling plug-in hybrid in Spain during November. The production plan targets up to 153,600 units for Kuga variants, which translates to roughly 650 units per day according to current estimates. Minivan variants like Connect, S-Max, and Galaxy also contribute to output, with Connect production around 73,200 units and daily runs between 400 and 500 units. In total, these minivans contributed several thousand units toward the year’s tally, though their volumes are smaller relative to Kuga. (Source: internal production forecast)
Looking ahead, the company outlined a gradual shift in production in the early months of 2023. Kuga and the minibuses will continue to be produced as the plant navigates this transition. A portion of Connect output remains pending a confirmed start date, while the Mondeo-style production is slated to wrap up after the first quarter. The plan indicates that only Kuga and the minibuses will remain in continuous production while electric vehicle preparation accelerates for future rollouts. (Source: factory production plan)
Extension of ERTE
In light of the strategic shift toward electrification, talks on the future of ERTE at the Almussafes plant have begun with union representatives. The stance across the discussion points toward maintaining the current ERTE terms for a period while assessing the need for adjustments, given the anticipated reduction in demand for conventional internal combustion engine roles as electric vehicle production scales up. This framework could translate into approximately 2,400 job losses from the plant’s current workforce of around 6,000. (Source: union briefings)
As negotiations proceed, the plan foresees a possible extension of the ERTE with likely contours that preserve existing conditions through the near term, potentially extending these arrangements to the end of March. Plant officials and union leaders expect the dialogue to continue to shape workforce requirements as electrification progresses and production priorities evolve at Almussafes. (Source: industry settlement notes)