Ford EV Production In Spain Could Get Boost Via New Program

March 29, 2023 10:02 am

Back in 2021, the European Union announced that an investment of 4.3 billion euros ($5.1 billion USD) would be going to Spain in an effort to boost EV production in that country, an important factor as the entity pushes for a zero-emissions vehicle mandate. Then, last year, Ford announced that it would be converting the Valencia Assembly plant in that same country to build all-electric vehicles, though it later decided to delay that investment amid poor economic conditions, prompting it to lay off around 1,100 employees. Regardless, Ford EV production remains on track and could potentially utilize at least one American platform for those future vehicles, and now, a newly revised program could also give Ford EV production in Spain an even bigger boost, according to Reuters.

According to this report, the Spanish government is planning to launch two tenders as part of a new aid program called PERTE this July, which will provide 2 billion euros ($2.16 billion) of funding for electric vehicle and battery production in that country. Those funds were available last year but weren’t ever allocated to companies, but the intentions are to make those decisions as soon as this week.

Previously, Spain planned on dishing out these tenders at different times – one in June destined for makers of battery cells, and another in September to support electric vehicle production. As one might imagine, multiple companies are reportedly interested in applying for these funds, including Ford, Volkswagen, and Renault.

Unlike previous terms, these remaining PERTE funds will reportedly involve a less stringent application process that will allow companies 40 or 60 months to bring their manufacturing operations online, with simpler selection criteria and fewer restrictions. This was a sticking point under the old program, which required joint bids between multiple companies, along with a shorter timeline in which those funds were required to be used.

We’ll have more on Ford EV production in Spain soon, so be sure and subscribe to Ford Authority for around-the-clock Ford news coverage.

By Brett Foote

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.