Ford will transfer production of its C-Max MPV to Spain from Germany.
The new C-Max, which launches next year, will be built in Valencia.
Ford says the new C-Max will be built exclusively at the plant "for all European markets and potentially for markets outside Europe". The Ford-C-Max is currently built in Saarlouis, Germany.
However, Valencia will lose production of the Focus when the new generation car launches next year, as it will be built solely in Saarlouis. Ford Focus production was previously split between Saarlouis and Valencia.
Both the Ford C-Max and Focus have been previewed by the Ford Iosis Max concept car. You can see the Ford Iosis Max on video here
John Fleming, Ford of Europe CEO, said the production changes would maximise manufacturing capacity.
"Our objective is to return to sustainable profitability as soon as we can," said Fleming. "We've already shown that we will make the necessary decisions and do whatever is required to ensure that Ford of Europe emerges from the downturn as a leaner and stronger company, ready to take on the opportunities presented once the economic situation finally improves."
Last month, the European Commission approved 51.9 million Euros (£44.5 million) of Spanish state aid for Ford to restructure the Valencia plant, which also builds the Fiesta.
Ford told the Commission it plans to invest 490 million Euros (£420 million) at the plant.