Ford sees ‘important’ job cuts because it picks Spain for EV manufacturing

The Ford emblem is seen on the North American Worldwide Auto Present in Detroit, Michigan, U.S., January 15, 2019. REUTERS/Brendan McDermid/File Picture

BARCELONA, June 22 (Reuters) – Ford Motor Co (F.N) stated on Wednesday it should begin producing electrical automobiles in Spain later this decade however that will indicate “important” job cuts at its Spanish manufacturing unit and one other one in Germany amid its bold electrification push in Europe.

The U.S.-based carmaker stated in an announcement it had chosen its plant in Valencia as the popular web site to assemble automobiles based mostly on a next-generation electrical automobile (EV) structure.

The opposite contender for the undertaking was Ford’s plant in Saarlouis, Germany, which is able to proceed to supply its Focus passenger automotive solely by 2025, when automotive manufacturing will then cease, a spokesperson confirmed.

“We’re evaluating future web site alternatives past that,” the spokesperson stated.

Workers in Valencia and Saarlouis have been informed that near-term restructuring will likely be required and that its measurement can be “important”, a Ford spokesperson informed Reuters, with out elaborating.

Ford had earlier warned the shift to EV manufacturing would doubtless result in trimming its workforce as electrical automobiles require fewer labour hours to assemble.

Ford’s Valencia plant workforce is round 6,000 folks whereas Saarlouis employs round 4,600.

Spanish union UGT referred to as the EV plant designation “nice information” because it ensures manufacturing for over a decade, whereas the plant had seen the output of earlier fashions diminished.

The UGT stated it anticipated EV manufacturing to start in 2025.

However the union stated in an announcement the EV push will indicate discussing with Ford how the workforce will likely be resized.

Ford in March introduced plans for seven new electrical fashions in Europe, a battery meeting web site in Germany and a nickel cell manufacturing three way partnership in Turkey. learn extra

It stated in 2023 it might begin producing a brand new electrical passenger automobile at Germany’s Cologne plant, whereas an EV model of its Puma mannequin can be produced in Romania from 2024.

Germany’s Volkswagen (VOWG_p.DE) earlier this yr introduced it might begin EV manufacturing in Spain in 2025, and can open a battery manufacturing plant in Valencia.

Reporting by Joan Faus, further reporting by Ben Klayman, Inti Landauro and Tom Sims; enhancing by Jason Neely and Jonathan Oatis

Our Requirements: The Thomson Reuters Belief Ideas.