Published on : Feb 06, 2015
Ford Motor has plans of giving a major boost to the output in the Valencia facility in Spain. This would mean a hike in production by almost 40% which as a result will lead to a total production of 400000 units a year. This also includes the addition of the latest models. From its earlier facility in Genk, situated in Belgium, Ford has enhanced the manufacturing of the S-Max large minivans, Mondeo midsize car, and Galaxy.
Genk was shut down in December last year in order to decrease the excess capacity, thereby restoring the European business’s profitability. On Thursday, Ford mentioned in a statement that it had successfully completed the main part of the expansion project worth US$2.6 billion in Spain, which the company called its largest investment project in the automotive industry. The project included an initial investment of 1.1 billion Euros in 2011, which was followed by an additional investment worth 1.2 billion Euros in 2013.
At present, Ford is increasing its levels of production at the facility in Spain alongside the country undertaking reforms for restoring economic stability, which also includes relaxation of rules for hiring and firing. According to the CEO of Ford, the Valencia plant is the most flexible automobile facility amongst all of Ford’s plants established worldwide, and it is also a rather modern type of a facility. The economic growth has also been restored because of effective labor and financial reforms. As a matter of fact, the automotive industry has played a major role in bringing back the economy of Spain back on the track of economic growth and prosperity.