Ford to invest $885 Million at Valencia to make new Kuga

[mackinaw]

Automotive News.

 

http://www.autonews.com/article/20171117/COPY01/311179950/ford-plans-885-million-outlay-to-build-key-crossover-in-spain

 

"Ford Motor will invest more than 750 million euros ($885 million) in its Spanish plant in the eastern region of Valencia to produce the new model of its Kuga crossover. The Valencia plant employs over 8,000 people and, in addition to the Kuga, makes the Mondeo and S-Max alongside the Tourneo and Transit commercial vans. Kuga production represents nearly half of the output of the Valencia plant. The Kuga is Ford's third top-selling nameplate in Europe behind the Fiesta and Focus. Ford has invested around 3 billion euros in the installations over the past six years, making Valencia one of the two largest assembly operations in Ford's global manufacturing system, alongside the Chongqing factory in China."

[Harley Lover]

It will be interesting to find out specifics of the investment as the news trickles out.

[bzcat]

The investment sounds like it is intended to add more volume to the Kuga line. So this means Ford is projecting higher volume for the next generation... probably means it will cancel the Grand C-Max in Europe and add 7 seat Kuga.

Edited November 17, 2017 by bzcat

[jpd80]

Yes, the way European markets are now embracing utilities over MPVs is now encouraging Ford to do more

with the next Kuga, a slightly bigger version of the current vehicle with third row option going to have more appeal.

 

This supersizing of the compact Focus and Kuga will no doubt, draw more customers from the mid sized brackets

but equally, allows the compact Fiesta and Ecosport room to grow slightly and better serve those customers too.

That realignment of product will be most effective in ROW markets but also some crossover to Nth America

where Escape grows to meet Equinox and Focus becomes bigger like Cruze and Corolla...not sure about Fiesta..