Ford is set to cut 1,100 jobs from its plant in Valencia, Spain, as it shuts down production of its once-popular models, the S-Max and Galaxy minivans. This move comes as part of the company's overhaul of its car production lineup in Europe, which will see it shift focus to SUVs and electric cars. The announcement was confirmed by a Ford spokesperson to Automotive News Europe.
The S-Max and Galaxy MPVs' end of production was announced last year, and is set to happen in April. Beyond the two minivans, the Valencia plant will continue to produce the Transit Connect compact van and the Kuga compact SUV. According to Ford's spokesperson, the company has pledged to work with its union partners to minimize the impact of the layoffs on its employees, their families, and the local community.
Gallery: Ford S-Max Hybrid and Galaxy Hybrid
Last year, Ford ceased production of the Mondeo midsize car at Valencia, which was also part of its restructuring plan. The move highlights the challenges facing traditional car manufacturers as they navigate the shift toward more sustainable and efficient models of transportation.
This isn't the first layoff from the Blue Oval. As confirmed last month, Ford will be cutting 3,800 jobs in Europe by 2025.
Ford's decision for the massive layoff reflects the company's adaptation to the evolving automotive industry, particularly in terms of the shift to electric vehicles. With the simplification of EV drivetrains, there is less engineering work required, which led to the elimination of 2,800 engineering positions. The remaining 1,000 jobs will be cut from administrative, marketing, sales, and distribution functions, as Ford streamlines its operations.
Layoffs From Other Companies:
The job cuts will have a significant impact in Germany, where 2,300 employees will be let go, followed by 1,300 in the UK, and 200 in other parts of Europe.
Martin Sander, General Manager of Ford Model e in Europe, explained the rationale of the job cuts to Automotive News, "There is significantly less work to be done on drivetrains moving out of combustion engines. We are moving into a world with less global platforms where less engineering work is necessary. This is why we have to make the adjustments."
Source: Automotive News Europe