Ford Plans Fourth Layoff Round at Almussafes Plant

Ford Proposes Fourth Layoff Round at Almussafes with 1,622 Job Cuts

The Ford plant in Almussafes (Valencia) faces its fourth collective dismissal procedure (ERE) since 2020. The company has proposed laying off 1,622 people. This announcement comes after management committed to producing new vehicles to guarantee the facility's viability. The contrast between the official narrative and employment reality is central to a debate mixing industrial policy, energy transition, and the future of internal combustion engines.

The Fourth ERE Since 2020

This is not a one-off adjustment. It marks the fourth time Ford has resorted to an ERE at Almussafes since 2020. The plant has endured years of uncertainty regarding which models it will manufacture and under what conditions. The announcement arrives amid declining sales of small cars and a shift toward SUVs, a segment where Ford struggles to find its footing. Meanwhile, management insists the factory has a future. The numbers suggest otherwise.

Official Narrative vs. Real Employment

The decision to produce new vehicles was presented as a guarantee for Almussafes' viability. Official messaging spoke of reindustrialization and long-term work. The layoff trinc this sequence—first investment announcements, then adjustments—which has drawn significant attention in subsequent analyses. Some argue that subsidies and public commitments serve to mask an orderly exit. Opponents counter that without these announcements, the closure would have been immediate. Regardless, the outcome remains the same: more than 1,600 people out of work.

The Problem Extends Beyond Ford

The Almussafes case is read as a symptom rather than an exception. Industry observers note that energy costs, port fees, transport, and environmental taxes now weigh heavier than wages. Automation advances while unskilled labor loses value. Added to this is Chinese competition: electric vehicles manufactured in Asia arrive with prices European industry cannot match. Some claim Ford loses money on every EV sold. The 2035 transition is perceived as a calendar imposed by Brussels that does not align with actual demand.

Cars That No Longer Sell

Ford ceased manufacturing the Mondeo, a car many considered excellent and reasonably priced. The Fiesta also disappeared. The Focus’s days are numbered. The pivot to SUVs has not compensated for these losses. A Kuga can exceed €35,000 without extras, a price many buyers consider excessive for what it offers. The market has split: those who can afford it buy a Tesla or a Chinese model; those who cannot stretch their existing car’s life. In between, European manufacturers watch their customer base shrink.

Union Silence

One of the most commented aspects is the lack of a strong response from unions. When the government shares political alignment with union leadership, protest dilutes. At least, that is the external interpretation. Worker representatives negotiate early retirements and incentivized departures, but the core issue—loss of industry—remains untouched. Some point out that the ERE terms, offering 20 days per year worked capped at 12 monthly salaries, push the company to shed senior employees first. Unions attempt to protect them. The math doesn't add up.

What Comes Next

The adjustment at Almussafes is not isolated. Other European plants for Ford and other brands face similar situations. The lingering question is whether this ERE is the last or the penultimate. Management has promised new models, but recent experience invites distrust. Spain's automotive industry faces structural problems: high costs, average productivity, and an electric transition advancing faster than demand. Almussafes is the visible first chapter. It will not be the last.