Ford Spain Gears for Kuga, Transit Connect Production

MADRID – Ford Spain halts Fiesta output at its Almussafes plant to prepare for assembly of the C-segment Kuga SUV and Transit Connect compact van.

The auto maker believes concentrating production of the two models in a single factory will produce savings and serve one of the most important segments in the European market.

Kuga builds will begin in the fall, followed later in the year by the Transit Connect. Ford says it may hire employees for a third shift if the European economy recovers by then.

Ford last year announced it was spending €582 million ($733 million) on Transit Connect production and €230 million ($290 million ) to build the Kuga at the Almussafes plant. The auto maker has invested €1.112 billion ($1.4 billion) in its Spanish operations since 2009.

The Almussafes facility also manufactures the C-Max small MPV and EcoBoost 2.0L engine. They are built exclusively for the European market, as will the Kuga and Transit Connect. The Kuga is built and sold as the ’13 Escape in the U.S.

Fiesta production will be concentrated in the Ford plant in Cologne, Germany, where the model has been produced since 1979.