Ford Plans to Invest in New Engine Plant in Spain
MADRID, Spain (AP) _ Ford Motor Co. said Tuesday it will invest nearly $774 million over the next five years to build a new engine factory in Valencia, Spain, and may expand an electronic components factory in Cadiz.
The car maker said it plans to begin manufacturing its new four-cylinder, 16-valve Sigma engine in May 1995. Ford hopes to reach full production of 550,000 Sigma units a year at its Valencia plant in 1997.
Ford designed the Sigma to gradually replace its smaller HCS engine line by 1998.
The Sigma engines, which have a capacity of up to 1.4 liters, will be made for small and midsized cars, including the Ford Fiesta and Escort models.
The new plant in Valencia will be built on land adjoining the engine factory Ford built in 1975 in Almusafes, in the eastern coastal region of Valencia.
With annual output of 556,000 units, the plant currently accounts for 31 percent of Ford’s engine production in Europe.
Ford also said it was considering investing about $77.4 million to expand its factory in Cadiz, Andalusia, which would create 150 new jobs in one of Spain’s most economically depressed areas.
Production at the Cadiz factory, which now makes electronic systems for cars, would be expanded to include Ford-designed electronic brake systems.