Adapting on our last news story, the cat is finally out the bag regarding Fords extravagant investments in new manufacturing plants. Alongside a slew of new vehicles for Europe, Ford is pumping a monolithic 2.3 billion euro’s into its Spanish base of operation. If that figure seems a little excessive to you, that’s because it is – in fact, this is said to be the single biggest investment in Spain’s auto industry to date.

Let’s look at why this is happening, is there a moral reason behind this decision or are Ford simply interested in putting more pressure on the European market?

You may not realise it but Spain’s unemployment figures are something in the region of a quarter of the overall population, a figure which the government is eager to close in on. By focusing on production in Valencia in Spain, Ford have managed to employ a marvellous 8,000 strong work force at the production plant. While admirable, there is a small catch and one that had obvious importance in Ford’s decision to move their production further south… cheaper wages.

By paying their employees less, it’s arguable that Ford is able to afford a larger workforce for the same capital payout they would have invested in their previous operations. There is a positive side to this as it is still a serious investment in the Spanish economy, one which the Spanish Prime Minister Mariano Rajoy was keen to celebrate upon his visit to the plant itself. Business Insider have also reported that the plant is also responsible for a significant increase in forecasts for Spanish economic growth through 2015.

Where do you sit in this story? Think Ford are just taking advantage of desperate workers by leaping on low salaries or is this a genius move that will pull thousands out of unemployment and boost a once ailing economy?

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