Spain may escape Europe-wide Ford cull

The US-based multi-national has warned of mass redundancies in 2019 across the continent, where it employs around 53,000 people – of whom about 8,000 are based in the factory in Almussafes (Valencia province) – in a bid to return to profit.

The plant in Bourgogne, France will close in August, leaving around 800 employees out of work, and the end of production of the C-Max and Grand C-Max at the factory in Saarlouis, Germany could affect about 1,600 workers.

Redundancies could also affect the UK, which only manufactures engines, although where design, technology and components centres are based, and it is possible that Ford will opt to pull out of its Ford Sollers joint venture in Russia.

As well as a reduction in structural costs and a 'sustainability plan' to return to profit, involving 'redesigning' factories to adapt them to manufacturing three types of vehicle – commercial, or vans; family saloons, and electric or hybrid versions of all models – the company intends to abandon its less-beneficial production lines, says chairman of Ford Europe, Steven Armstrong.

The European branches of Ford are hoped to producec a net profit margin of 6% after the cuts.

These decisions leave the production of the Galaxy and S-Max up in the air – two models that represent 10% of the Almussafes plant's workload – although thanks to an investment of €750 million, Almussafes will continue to manufacture the new Kuga (pictured), which makes up around 50% of its production.

Almussafes churns out some 400,000 new Fords a year, making it one of the largest and most profitable of the company's factories in Europe.

Secretary-General of the General Workers' Union (UGT) Ford section, Carlos Faubel, says the exact number of redundancies across Europe is not yet clear, but that so far, Spain has not been mentioned.

This is 'good news', but does not necessarily mean Almussafes is 'exempt', since 2019 is set to be 'rather complicated' for Ford all round, Faubel admits.

Negotiations between UGT-Ford and the company may be on the cards in the following months, and Faubel says the union is preparing its strategy as a precaution in case Almussafes' name comes up.

The union wants to steer any job cuts towards early retirement packages and voluntary redundancies if the Valencia plant is hit.

Ford Europe has started 'formal consultations' with its employee council and unions and says it is 'committed' to cooperating with 'those affected' in order to put its business strategy for the continent in place as soon as possible.

But no consultations have been alluded to – let along commenced – in Spain, leaving the 8,000 plant employees feeling quietly confident, or at least hopeful.

After the Ford Kuga's nearly 181,000 units per year – making up 47.5% of the Almussafes plant's production – the next-largest model at the Valencia province factory is the Ford Connect, with almost 110,000 churned out annually, representing just under 29% of its workload.

The Mondeo accounts for half this amount – 14.3%, or nearly 55,000 cars per year – whilst the possibly 'endangered' S-Max and Galaxy account for 21,500 and 13,400, or 5.7% and 3.5%, respectively.