Ford Motor Co. has announced that it will be cutting 1,100 jobs at its Valencia plant in eastern Spain. This is in addition to the 2,300 layoffs that were announced last month as part of the company's strategy to achieve a leaner and more competitive cost structure in Europe, according to a report by AP.
Ford Motor Company' logo is seen on the side of the building at the unveiling of their new electric F-150 Lightning outside of their headquarters in Dearborn, Michigan on May 19, 2021. - One day after winning an enthusiastic endorsement from President Joe Biden, Ford will officially preview the all-electric version of its best-selling F-150 truck on May 19, 2021.
Valencia Plant
Ford Spain has described this as a profound restructuring of its operations, with the workforce becoming surplus when the plant switches to making electric cars, as this requires less labor. The Valencia plant has been championed by Ford as its preferred site to assemble next-generation electric vehicles on the continent.
Currently, the Valencia plant is Ford's only facility in Spain and employs 5,400 people. The job cuts are mainly due to the discontinuation of production of the S-Max and Galaxy models in April 2023. Ford has not disclosed how many of the 1,100 jobs being cut will be permanent positions.
Ford has been restructuring its European operations since 2022, and last month, the automaker announced 2,300 layoffs largely in Germany and the United Kingdom as part of its strategy to focus on producing electric vehicles and sustainable mobility solutions.
Ford plans to launch its first European-built electric car later this year, as part of its strategy to offer an all-electric fleet in Europe by 2035.
Shift to EVs
This transition towards electric vehicles is driven by the need to reduce emissions that contribute to climate change. The shift to electric vehicles is a global trend, with governments introducing regulations and incentives to promote sustainable transportation.
However, the switch to electric vehicles is also leading to job losses, as electric cars require less labor than traditional combustion engine cars. This may be seen in the Valencia plant as it has been identified as Ford's preferred location to assemble "next-generation" electric vehicles in Europe.
In January, Ford opened a new solar power plant at the Valencia facility, as part of its efforts to become a carbon-neutral business. The automaker has pledged to be carbon neutral by 2050 and is investing $22 billion in electric vehicle development through 2025 to achieve this goal.
In related news, Ford is recalling 18 F-150 Lightning pickup trucks after learning that one truck caught fire due to a faulty battery. This follows the suspension of production and shipment due to battery problems found during the pickup's manufacturing process.
The South Korean battery supplier SK ON improperly manufactured the affected automobiles with battery cells at its production facility in Georgia, according to a report by The Verge.
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