As part of a social plan linked to the reorganization of its production in Europe, Ford announced on Friday the elimination of about 1,100 jobs at its factory in Valencia, in eastern Spain.
The group “will work constructively with the unions to reduce the impact” of this social plan “on employees, their families and the local community,” added this spokesperson.
The Spanish Minister of Industry, Reyes Maroto, expressed, in an interview with Cadena Ser radio, “her greatest concern” and stressed that “the public aid that the Government is allocating to carry out the entire transition to electric mobility is conditioned to maintaining employment.
3,800 job cuts by 2025
This social plan, presented to the unions on Friday morning, is in addition to the 3,800 job cuts in Europe already announced in mid-February by the US group, mainly in Germany (2,300) and the United Kingdom (1,300).
These 3,800 job cuts by 2025, representing around 10% of Ford’s current European workforce, will primarily affect product research and development (R&D) teams, not vehicle production.
The American manufacturer had justified this size in its workforce by its desire to set up a “more competitive cost structure” in Europe, where it is encountering difficulties. As part of this, it will reduce the number of models designed for Europe by focusing on its battery-powered models and highly profitable commercial vehicle sales.
The race to electric
The manufacturer, once one of the pillars of the European car industry, has seen its market share plummet in the last twenty years in Europe. It accounted for 4.6% of new car sales there in 2022, with 516,614 units sold.
Like the entire auto industry, Ford is immersed in the race towards electricity, a technology that requires heavy spending on research, complete modernization of factories and in which it plans to invest 50 billion dollars by 2026.
These various social plans come as fears of a relocation of auto industries to Europe have grown since Washington introduced large subsidies for electric vehicles made in the United States.
Source: BFM TV
