The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture For Transport Equipment Manufacture Of Motor Vehicles, Trailers And Semi-Trailers 29.10 - Manufacture of motor vehicles
1,124 jobs Number of planned job losses
Announcement Date
9 March 2023
Employment effect (start)
3 April 2023
Foreseen end date
31 December 2023
Description
Ford Spain, the car manufacturer, has proposed to the company committee of its Almussafes assembly factory in Valencia its intention to cut 1,100 jobs, which would represent 18% of the total workforce. This lay-off process is expected to affect 960 employees in the vehicle plant and 140 in the engine plant.
The company justifies this decision mainly by the planned cessation of production of the S-Max and Galaxy models at the Valencia plant, which will take place in April this year, leaving only the production of the KUGA model. In addition, the company points out that this measure is in line with the transformation plan that aims to "resize" its workforce in Spain on the occasion of the revision of the vehicle range and the introduction of electric vehicles (carbon neutral economy). In this sense, the company is awaiting the arrival of the new electric vehicle platform, whose production from 2025 onwards was awarded last year. The arrival of electric vehicles at the Spanish factory will serve to ensure the workload at this centre, although, as previously announced by the company, this decision will be associated with a resizing of the workforce, due to the lower workload demanded by the production of electric models.
The company has expressed its willingness to work "constructively" with trade union representatives to reduce the impact of this decision on workers, their families and the local community. Trade Unions have expressed their surprise by the high number of workers affected by this lay-off process.
Previous restructuring events have been recorded in the ERM database for Ford. In 2023, Ford announced a global restructuring plan to cut 3800 jobs (Ford-2023-WO), and a related plan in Germany which cuts 2300 jobs (Ford-2023-DE).
Updated, 4/04/2023
The management of Ford España and UGT, the majority union at the Almussafes factory in Valencia, have reached a final agreement for a workforce lay-off plan (ERE) that will affect 1,124 workers at Ford España. In the Vehicles plant there will be 940-960 affected and in Engines 140-160, while in the central offices of Madrid only 16 employees will be affected. This ERE plan will be carried out between May 2 and December 31 2023. UGT has shown its satisfaction with the agreement, particularly with the agreed redundancy payments, which will redound in a 100% voluntary redundancy rate.
Eurofound (2023), Ford España, Internal restructuring in Spain, factsheet number 108636, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/108636.
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