Volkswagen will manufacture its batteries in Sagunto. This is great news for Ford workers.

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Volkswagen has made the decision to install its plant for the battery manufacturing in Sagunto (Valencia). The decision not only affects the possible workers that the German group is going to employ to put the new manufacturing space into operation, but also the Ford plant in Almussafes.


The decision, which is not yet official but media outlets such as The Automotive Tribune taken for granted (at the time of writing this article we have no response from Volkswagen), it will be announced when Volkswagen registers its proposal in the Strategic Project for Economic Recovery and Transformation in the Electric and Connected Vehicle sector (Perte VEC)with which aid funds will be awarded for the development of these new cars and technologies related to them.

On the way to opt for this battery factory, Catalonia, Aragón and Extremadura have remained. Each one had its own attractions but, finally, it has been Sagunto the chosen city and in Ford Almussafes they also see it with good eyes.

Ford2015 Valencia Plant 09

More hope for Ford Almussafes

One of the main reasons Volkswagen argues for choosing Sagunto, where the Generalitat Valenciana has already classified the chosen space as industrial land, is its proximity to Almussafeswhere Ford employees are fighting to manufacture two new electric vehicles and that this production does not escape from Spain.

In a review of the situation of the Spanish industry, we already told that the Ford workers had assumed an important adjustment to continue opting for the manufacture of electric vehicles in Almussafes. In the agreement, to which Ford has yet to give the go-ahead, a freeze on salary and an increase in working hours were accepted.

Now, Volkswagen’s decision may be a boost to maintain the full activity of Almussafes, since both firms have a collaboration agreement for the development of electric and autonomous vehicles. In said agreement, signed at the end of 2018, Ford is allowed the use of the MEB platform of the Volkswagen Group for the manufacture of new electric models, and it was decided that Ford would manufacture two new commercial vehicles (a pick-up and a van with a maximum load capacity of one ton) under the name of the two firms. In addition, Volkswagen was in charge of an urban and electric van.

Synergies, keys in the Spanish electric car

Of course, Ford is not the only company that can welcome Volkswagen’s decision with optimism. The battery manufacturing plant will also supply Seat Martorell or the Volkswagen plant in Landaben (Navarra). In fact, this was one of the main reasons for keeping Aragón as one of the most interesting options to install this factory, creating a corridor for the electric car between Navarra, Aragón and Catalonia.

Although it has not yet been confirmed which companies will be part of the project that Volkswagen will present for the award of the Perte VEC, we do know that it is necessary that in it five companies involvedof which 40% must be SMEs, that one of them contributes knowledge of R+D+i and that At least two Autonomous Communities participate. In this way, it is hoped to create a value chain for the manufacture of electric vehicles.

1,000 million to decarbonize and digitize public transport: this is the first large grant for urban mobility of the Next Generation

From the publication in the BOE of the Perte VEC, it will be necessary to wait a month for the companies to present themselves and the confirmation of aid it is not expected until the third quarter of this year. In addition, these funds, which originate in Europe (Next Generation funds), force the new plants to be distributed throughout the regions with the lowest income per capita, which takes Madrid, Catalonia, Navarra or the Basque Country out of the equation and big cities like Valencia or Zaragoza.

They will therefore be 2,975 million euros available that will require the installation of industry in these less developed areas and in which collaboration between various companies and financing groups will be forced, with projects whose completion does not exceed September 30, 2025.

Volkswagen has made the decision to install its plant for the battery manufacturing in Sagunto (Valencia). The decision not only…

Volkswagen has made the decision to install its plant for the battery manufacturing in Sagunto (Valencia). The decision not only…

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