Ford to hike output at Spanish plant by 40% this year

Article by Christian A., on February 10, 2015

Ford Motor is planning to hike production at its Valencia site in Spain by 40 percent to around 400,000 units this year. The Valencia plant is now in charge of building the Mondeo midsize car and the Galaxy and S-Max large minivans, after their former home, Ford’s Genk site in Belgium was closed in December as part of the carmaker’s plan to trim excessive capacity and return its European operations to profit.

Ford recently said in a statement that it has completed the final part of a EUR2.3-billion ($2.6 billion) expansion of its operations in Spain. This investment includes an initial EUR1.1 billion announced in 2011 and another EUR1.2 billion since 2013.

The US carmaker is boosting its output in Spain, which is currently making reforms – like easing the conditions for firing and hiring -- to restore economic stability. Ford chief executive Mark Fields and Spanish Prime Minister Mariano Rajoy have visited the Valencia site to mark the investment.

Fields remarked that the Valencia site is one of the most modern and flexible auto plants around the world. Rajoy, meanwhile, said the auto industry had played a key role in the recovery of the Spanish economy.

With that, the European Commission is expecting more of the country’s economic growth this year. Ford’s investment in Spain comes as the carmaker continues to trim its losses in Europe, even cutting the deficit in the fourth quarter of 2014 to just $443 million.

Sales also grew faster than the industry overall, jumping 7.3 percent. Fields told Bloomberg that Ford’s European business and its market share grew in 2014 Europe and they expect the auto industry to “grow a bit more this year."

Ford will commence production of the latest Galaxy and S-Max models later in 2015 and by the end of the year, the Valencia site will be building six models.

If you liked the article, share on:

Topics: ford, spain, production

Comments

Recommended

Czech carmaker is making fans of its CNG-powered (compressed natural gas) Skoda fall in love all over again by making the latest iteration of the Octavia G-TEC more powerful and...
by - September 24, 2018
Volkswagen’s hot hatch just got hotter for the 2019 model year with the introduction of a Rabbit Edition. The new 2019 VW Golf GTI Rabbit Edition is a special model...
by - September 24, 2018
If you’re planning to buy a new Porsche unit powered by a diesel engine, better do it as soon as possible. This is because the German sports car maker has...
by - September 24, 2018
If you are one of those lucky enough to place an order for a final production version of the Mercedes-AMG Project One, here is a good development: Mercedes-Benz’s high-performance arm...
by - September 21, 2018
After months of previewing the e-tron all-electric sports utility vehicle through prototypes wrapped in bright orange and black camouflage, Audi has finally unveiled the final production version of the SUV...
by - September 20, 2018