The Spanish subsidiary of Ford, which includes its factory in Almussafes (Valencia) and its commercial business, managed to close the 2020 financial year, in black numbers although with a sharp drop in profits.
Ford Spain registered a net profit of 6.14 million euros, 94% less than in 2019, after its income was cut by 20%, up to 6,655.7 million euros, according to the company accounts registered in the Commercial Registry.
A decrease caused by the effects of the pandemic, since the production of its assembly lines reached 235,344 vehicles, 32% less than the previous year. In the case of its specialized engine plant, with 247,928 units manufactured, it reduced its production by 23.5%.
The labor adjustment bill
In addition, the labor adjustments carried out during the year of the Covid supposed costs of almost 64 million euros for the Valencian plant. Ford undertook an Ere of extinction, which it had already announced before the pandemic broke out, which meant the departure of 350 professionals and the factory was completely stopped for several weeks, even before the state of alarm was decreed due to the appearance of the first infections between employees. The Valencian factory has not recovered production levels prior to Covid.
The vast majority of the cars that left the Valencian plant (96%) were destined for export. In fact, most of Ford Spain’s income came from sales to other companies in the Almussafes production group, with a total of 5,558 million euros. A figure that also decreased by 18.5%.
The Almussafes factory is precisely waiting for the Ford leadership to decide the European plant will assume the new electric models, a workload for which it competes with the German subsidiary of Saarlouis. A process for which after a long process of conversations, in addition to increasing working hours and the flexibility to produce on Saturdays.
Precisely, the Spanish subsidiary insists in its latest management report that the Valencian plant is at the forefront in competitiveness despite the pandemic. “The Almussafes factory remains one of the most important and efficient production facilities in the sector in Europe and as a specialist in high value and complex vehicles, manufacturing more models than any other Ford manufacturing plant in Europe,” he says.
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