Ford Motor on Thursday said it is in talks with local Unions to temporary layoff almost 4,000 of its 6,200 workers at its Spanish assembly plant in Valencia because of sluggish European demand for new vehicles.
Ford Motor Co.’s Spanish division says it wants the workers to stay home for 39 days between January and October of next year.
The announcement comes after the Detroit based automaker on June announced a massive investment of 812 million euros, the largest investment in history in an automobile plant in Spain.
The investment “will lead to the creation of hundreds of jobs,” said Stephen Odell, chief executive officer of Ford Europe, at an event in Valencia accompanied by the Industry Minister Miguel Sebastian.
The presentation ceremony for the company’s plans was attended by the Head of Ford Spain, José Manuel Machado, and the regional minister, Vicente Rambla, the President of the regional Parliament, Juan Cotino, and major players from the business and industrial sector of the Valencia Region.
Back in 1973 the Ford Motor Company purchased 270 acres of orchard on the edge of Valencia. Exactly 1,000 days later, on 18 October 1976, the first Ford Fiesta rolled off the production line.
The car industry accounts for around 6 percent of Spain’s gross domestic product (GDP).
In Spain, the 4,978,300 unemployed amounted to a jobless rate of 21.5 percent, the highest since 1996 and up from 20.9 percent in the previous quarter.