Ford Motor Co. (NYSE:F) has announced it will manufacture its next generation of electric vehicles at its factory in Valencia, Spain.
What Happened: According to a Wall Street Journal report, the announcement was made earlier today in a telephone conference call hosted by Stuart Rowley, head of Ford of Europe.
Ford has a 41,000-person workforce in Europe, including 6,000 at their Valencia facility and 4,600 at a plant in Saarlouis, Germany. Rowley stated the new focus on electric vehicles would result in a reduction in the number of employees at the two locations, although he did not offer specifics on how many people would be out of jobs.
“We will need to undertake significant restructuring at both plants,” Rowley said.
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Why It Happened: Ford’s announcement follows last week’s official plan published by the European Union that proposed a ban on new cars with combustion engines beginning in 2035.
However, this plan would need the approval of all 27 EU member nations for passage, and the German government has voiced its opposition to the proposed ban.
“We want to allow combustion engines even after 2035,” said Minister of Transport Volker Wissing in an interview with Motor1.com Italy, adding that Germany would welcome the continued sale of new combustion cars after 2035 "only if the cars can be powered exclusively with synthetic fuels."
Photo: 2021 Ford Mustang Mach-E
