Ford will postpone investment in electric vehicle production in Spain after adjusting its expectations for the European market
According to foreign media reports, Ford said it would postpone production investment in Spain after adjusting its expectations for the European market. However, it will remain committed to producing electric cars at its Valencia plant in Spain.
Like most carmakers, Ford is trying to shift to a broader electrification of cars. To remain competitive and take the lead in the new era of smart connected electric vehicles, the company plans to invest more than $50 billion in research and development of electrified models and power battery technologies from 2022 to 2026.
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Ford is "changing and reshaping its business" as it continues its transition to all-electric vehicles. In a letter to employees this week, Ford said it planned to cut 3000 jobs in the US, Canada and India as part of its restructuring plan to become more competitive in the electric car market.
A Ford spokesman said the jobs affected included 2000 salaried jobs and 1000 contract jobs, accounting for about 6 per cent of 31000 full-time salaried employees in the US and Canada.
In addition, the company said it had no plans to cut jobs at its Valencia production plant. The company has said it will do some restructuring of its employees because of the reduced man-hours required to assemble electric vehicles.
The job cuts come at a time when the company is trying to "address all aspects of cost issues to improve competitiveness and ensure full investment in growth".
