# Ford delays Spanish investments, citing ‘revised outlook for Europe’
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Ford Delays Production Investments in Spain Amid Revised
Meta Description: Ford announces delay in Spain production investments due to Europe's revised outlook, committing to Valencia plant for EV production.
URL: https://financedigest.com/ford-delays-spanish-investments-citing-revised-outlook-for-europehtml

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By Joan Faus

BARCELONA (Reuters) -Ford said on Wednesday it is delaying its production investments in Spain, citing a “revised outlook for Europe” but said it remained committed to its plant in Valencia, where it announced plans in June to produce electric vehicles (EVs).

The U.S. carmaker said in a statement it will not ask for a share of Spain’s EU [pandemic relief funds to invest](https://www.financedigest.com/3-investing-lessons-you-can-learn-from-still-evolving-pandemic.html "3 Investing lessons you can learn from still-evolving pandemic") in the roll-out of EVs by June 2025, but said it will work with local authorities to identify other potential public funding as it moves to an all-electric fleet of passenger vehicles by 2030.

[Ford did not give further details on its revised outlook](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop") for Europe. It said earlier this week it will [cut a total of 3,000 salaried and contract jobs](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding"), mostly in North America and India.

No jobs will be cut at its plant in Valencia for now, a Ford Spain spokesperson said, although the carmaker has long said there will be some restructuring of its workforce as [electric cars](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") require fewer labour hours to assemble.

Both UGT union and Spain’s [Industry Ministry played down the investment delay](https://www.financedigest.com/german-industry-calls-for-delay-to-global-minimum-tax-bdi.html "German industry calls for delay to global minimum tax – BDI"), noting that it does not affect Ford’s plan to produce EVs in Spain.

The Spanish government maintains its commitment to support Ford in its current and [future investments](https://www.financedigest.com/investing-in-the-city-thats-investing-in-itself-welcome-to-the-liverpool-of-the-future.html "INVESTING IN THE CITY THAT’S INVESTING IN ITSELF – WELCOME TO THE LIVERPOOL OF THE FUTURE!  ") in Spain,” the Industry Ministry said in a statement.

Ford had applied in May for Spain’s EU pandemic relief funds and had been allocated 106 [million euros](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") in a first provisional allotment, but withdrew its application on Tuesday ahead of a deadline for potential changes, the Ministry said.

(Reporting by Joan Faus and Jan C. Schwartz, editing by Inti Landauro and Bernadette Baum)


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