Ford has picked Spain over Germany to produce electric vehicles (EVs) but has warned of “significant” job cuts ahead.
The US car maker said today EV production at its Valencia plant will begin later this decade, but it will imply redundancies both at the Spanish plant and at the marquee’s facility in western Germany.
The company cited the Valencia plant’s next-generation EV architecture as the main reason behind the choice.
Spanish union UGT said the decision was “great news,” but it would imply discussion on resizing.
Ford told Reuters workers at both plants had been notified about the restructuring, as EV manufacturing requires fewer manufacturing hours.
As part of its transition to EV, Ford plans to produce seven new electric car models in Europe, as well as a battery assembly site in Germany and a nickel manufacturing venture in Turkey.