Ford Retools Spanish Plant for Next-Gen Kuga SUV

Ford Motor Co. is investing more than €750 million ($885 million) to retool its massive manufacturing facility in Valencia, Spain, to build the next-generation Kuga midsize SUV.

The carmaker notes that about one-fourth of new passenger vehicles sold in Europe are SUVs. The Kuga, which is Ford’s third best-selling nameplate in Europe behind the Fiesta and Focus small cars, currently accounts for nearly half of Valencia’s output. European sales of the SUV are up 22% year-over-year through the first 10 months of 2017.

In addition to the Kuga, the Valencia plant is the sole source for Ford’s Tourneo and Transit commercial vans and also builds a range of Galaxy, Mondeo and S-Max models. About 90% of the vehicles assembled at the plant are exported to more than 75 countries worldwide, including the U.S.

With the Kuga program, Ford says its investment in Valencia has grown to about €3 billion ($3.5 billion) since 2011. Employing more than 8,000 people, the Spanish complex is Ford's second-largest site after its Chongqing factory in China. Ford has produced more than 12 million vehicles and 16 million engines in Valencia since opening the plant in 1976.