Ford ploughs €2.3 billion investment into Spanish plant

Ford ploughs €2.3 billion investment into Spanish plant Image

March 09, 2015

Motor insurance in Spain may be in somewhat greater demand in the years to come, thanks to a massive vote in confidence in the country's economy from US giant Ford. The manufacturer has confirmed the final part of its €2.3 billion (£2 billion) expansion of its Spanish operations, in what has been hailed as the biggest investment that the country's car industry has ever seen.

The news centres on Ford's Valencia plant, which will boost its output by 40% this year as a consequence, to about 400,000 units. It will also mean new models. The medium-sized Mondeo and larger Galaxy and S-Max people carriers had previously been produced at Ford's Genk plant in Belgium, which was closed in December as part of a cutting of excess capacity designed to restore the manufacturer's European arm to profit.

The company had announced an initial €1.1 billion investment in 2011, with an additional €1.2 billion having followed since 2013. The plant to the east of Valencia was visited by Spanish Prime Minister Mariano Rajoy, who declared that the auto industry had played a key role in the recovery of the Spanish economy.

Ford will be able to expand its model lines from four to six as a result of the investment, in addition to expanding exports to markets outside Europe, including the shipping across the Atlantic of Transit Connect compact vans.

On completion of the expansion work, the Valencia plant will have a capacity of 450,000 vehicles a year - news that is sure to be welcomed by many of those currently enquiring about a car insurance quote in Spain. It will also mean that Valencia joins the automaker's Chinese factory in Chongqing as one of its two largest global assembly operations.

Spanish residents have already seen the benefit of Ford's investments in the Valencia plant, employment numbers at the facility having risen from just under 5,000 in early 2013 to about 8,000 now. This has only added to the rude health of a Spanish car industry that created 26,800 jobs last year, according to ANFAC, the national car producers' association.

Such momentous developments may mean, all and all, that there has never been a better time for expats to request a quote for Spain motor insurance.

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