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Ford plans $885 million outlay to build key crossover in Spain

Current Kuga production represents around half of the output at Ford's Valencia plant in Spain. Photo credit: Ford

MADRID -- 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, according to Automotive News Europe's car assembly plant map. 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.

"This significant investment underlines Ford's commitment to Spain as one of its most important manufacturing sites in Europe," the company said in a statement.

The investment in the Spanish plant continues a trend of auto production moving south or east in Europe, where wages tend to be lower.

Spain's car industry, including auto parts manufacturers, employs just under 300,000 people, according to official statistics. It accounts for around 7 percent of the country's economic output, according to the vehicle manufacturing association Anfac.

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