Ford plans dollars 1bn Spanish plant

Ford is to spend more than dollars 1bn ( pounds 500m) on a new small engine range to be built in Valencia, Spain, mainly for its Fiesta and Escort models.

A new plant will produce up to 550,000 engines a year and should start production in 1995. The investment follows the launch last year of the medium- sized Zeta engine range, which is being made at Bridgend in South Wales. Ford plans to replace most of its European engine range by the mid-1990s.