Ford commits to vehicle manufacturing in Valencia

Ford Motor Company and the UGT union on August 29 signed an agreement securing vehicle assembly in the company's Almussafes, Valencia, vehicle manufacturing plant until 2013.

Under the terms of the agreement, the company has confirmed its intention to introduce up to three new small and medium segment models into the plant and that the plant would be producing at least 350,000 vehicles per annum across three shifts. Ford will also be investing 425 million Euros at Almussafes in support of this initiative.

The Valencia UGT union has, in turn, committed to assist the company in achieving labor costs savings required to keep the plant cost competitive with the rest of the European vehicle manufacturing industry.

Ford of Europe president and CEO John Fleming praised the cooperation of the UGT union and the Almussafes workforce in reaching this agreement. In Valencia for the signing of the formal document, he said: "With the signing of this agreement today, I am pleased to be able to dispel any uncertainties about the future of the Valencia plant. I have always said it was one of our most efficient and flexible plants in Europe."

Gonzalo Pino, the representative of the main UGT union at the plant, also welcomed the agreement. "We are pleased that the company has shown faith in the Valencia workforce by committing itself to this program of investment and new model introductions," he said.