Facing the sharp realities of climate change, the path to cleaner mobility increasingly centers on electric vehicles. This shift is viewed by some as a hopeful trend. Ford’s leadership announced a plan to convert its Almussafes plants to produce electric cars starting in 2026, signaling a major pivot for the company and the region. Yet the transition comes with trade-offs: a visible drop in activity at the Valencia plant and a broader squeeze in the provincial auto-supply chain, particularly in Foia de Castalla, where many suppliers rely on the automotive ecosystem. Even as plants adjust to new components and manufacturing needs, many expect activity to dip during this transition while investment pivots toward electric propulsion.
Ford’s executives have set ambitious sales targets for the coming years, aiming to move toward international markets with hundreds of thousands of plug-in vehicles. Within this plan, maintaining the Almussafes factory as a key production site is essential, but the exact output remains uncertain. The question with any big shift is not just how many units to build but how the entire supply chain will adapt to the new demand profile.
Today, the Almussafes site produces a substantial volume of internal combustion vehicles and sustains a large workforce. A forecasted reduction in labor by around 40 percent is anticipated as electric production requires a different balance of tasks. The transition also means the wind-down of certain models, such as the S-Max and Galaxy, during the changeover. The impact of these changes will ripple through the Foia de Castalla region, where about 70 automotive-related companies depend on the industry for work. Héctor Torrente, leading the Ibiae Entrepreneurs Association, notes that the entire process has generated significant uncertainty. He points out that manufacturers have repeatedly shown adaptability, but this shift raises many pressing questions about timing, capacity, and the paths forward for suppliers.
In the near term, signs of reduced activity are already appearing. A chief concern is the transitional period between traditional internal combustion engines and fully electric drivetrains. The announced halts or pauses in certain Valencia-area models next year will influence the demand for components and the broader supply chain. The question remains how rapidly demand will recover once a fully electric lineup becomes the norm.
less sales
Alfredo Martínez leads the trade and engineering division at Faperin, a company supplying a range of plastic interior and exterior automotive parts to multiple brands, including Ford, through intermediaries. He believes electrification will affect production throughput because electric vehicles currently sell in smaller numbers than combustion models. Prices for electric cars stay elevated, and charging infrastructure is still catching up, which discourages some buyers. This slowdown in sales translates into temporary adjustments in parts production that many automakers have relied on from external suppliers. The current outlook remains cautious.
Martínez also notes that, with weaker demand, there is temporary production of parts that some manufacturers have ordered from external partners. The mood across the sector is one of tempered expectations as the market navigates early-stage electrification.
Another local player in the supply chain is Borney, a company that historically produced metal tubes and exhaust components. With the rise of electric vehicles, the firm has reoriented its capabilities to fabricate a broader range of structures, from seating supports to battery housings. Director Juan Manuel Santonja explains that the company has diversified beyond exhaust systems to meet evolving market requirements. The future of Ford’s electrification remains uncertain, and local suppliers are watching closely to gauge how quickly they can align with new demands.
Sagunto gigafactory to introduce metals and plastics in the state
While questions remain about the Almussafes facility, there is a clear sense among suppliers that new opportunities are on the horizon, especially in the Sagunto area. The vast investment in Volkswagen’s battery factory there is often cited as a benchmark for potential growth in the regional supply chain. Automotive suppliers believe this initiative could unlock additional business, boosting local activity. Interestingly, 2026 is a shared milestone: a year when Ford expects to begin electric vehicle production as well, suggesting a synchronized evolution of regional manufacturing capabilities and demand patterns. These interwoven dynamics shape a broader outlook for the sector, proposing that the Sagunto venture could anchor a more robust regional ecosystem while Ford realigns its own production footprint.