• Spain's news in English

Spain's car industry aims for export-led growth

AFP/The Local · 16 Oct 2013, 18:02

Published: 16 Oct 2013 18:02 GMT+02:00

Facebook Twitter Google+ reddit

Manufacturers plan to raise production from 2.2 million automobiles this year to 2.4 million next year, an increase of nine percent, said David Barrientos, spokesman for the National Association of Car and Truck Manufacturers (ANFAC).

Although Spain has no automobile maker of its own, it hosts 17 factories run by 10 foreign manufacturers.

As a result, Spain was the second-largest automobile producer in Europe after Germany in 2012.

The industry, which accounts for about 10 percent of Spain's total economic output, aims to boost output to three million vehicles in 2016.

Almost 90 percent of the cars made in Spain are destined for export.

"Domestic demand is beginning to pick up timidly, notably thanks to scrappage incentives," ANFAC president Rafael Prieto said at an industry forum in Madrid organized by ANFAC and consultants PricewaterhouseCoopers (PwC).

"But we have still got a long way to go," he cautioned.    

The car industry's sales slumped from 1.7 million in 2007 to 700,000 in 2012, said PwC Spain chief Carlos Mas. "But it managed to fight back by taking advantage of the dynamism of the foreign market," he added.

Story continues below…

The automobile sector employs some 250,000 people and is key to the Spanish labour market, stricken by an unemployment rate of 26.3 percent.

Unions have had to cede salary cuts and greater flexibility, however, to lure the production of new models to Spain.

General Motors' Opel and PSA Peugeot Citroen announced this month they would both build their next generation small people carriers in the same factory in Figueruelas, northeastern Spain, as part of the new strategic alliance between the US and French car makers.

AFP/The Local (news@thelocal.es)

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Two imams arrested in Ibiza resort over 'Isis support'
The men were arrested in the resort of Sant Antoni de Portmany. Photo: Jose A / Flickr

Two Moroccan imams at a mosque on the Spanish resort island of Ibiza were arrested Tuesday on suspicion of backing the Islamic State group and inciting jihad.

Balearic Islands choose to keep summertime forever
The islands will have longer evenings during winter. Photo: AFP

The Balearic Islands want to keep summertime when the rest of Spain turns the clocks back on Sunday.

  Brazilian had 'uncontrollable desire to kill': Spain police
Francois Patrick Nogueira Gouveia has been charged with murdering his uncle, his wife and their two children. Photo: Guardia Civil.

A Brazilian teenager accused of dismembering his uncle and aunt and killing their two young sons in a grisly crime that shocked Spain had an "uncontrollable desire to kill", police said on Monday.

Man rescued from bin after climbing in to find old clothes
Photo: Policía Local Murcia

Police were called after passersby reported hearing a man calling for help from within a rubbish bin in the Vistabella neighbourhood of Murcia, southern Spain.

Spain faces crucial week as conservatives re-take power
Mariano Rajoy hopes to form a government this week. Photo: AFP

Spain entered a crucial week as acting conservative PM Mariano Rajoy prepared to re-take power, ending ten rollercoaster months without government marked by hope and disillusion.

Eight very creepy Halloween costumes ideas from Spain
Photo: Pan's Labyrinth

Forget flamenco dancers and bullfighters, The Local counts down the freakiest alternative costume ideas to dress up in this Halloween.

Man attacked by racist thug in UK street for talking Spanish

Tomas Gil, 27, from Valencia in eastern Spain was talking to his girlfriend in their native language after a night out in the British seaside town of Poole when he was set upon by a racist thug.

Malaga: Police probe bizarre 'sex death' of homeless Brit
The man was found near Malaga airport. Photo: Dennis Howlett / Flickr

A British homeless man was found dead tied to a bench near Malaga airport with his trousers down and his genitals in a can of tuna.

Clock ticking as Spain races to avoid third elections
Third elections could now be avoided. Photo: AFP

Spain's Socialists voted on Sunday to allow the conservatives to take power, likely averting a third election for Spaniards tired of going to the polls.

Spain worries about tourism future
Photo: Josep Lago / AFP file picture

After basking in its best tourist summer season in 15 years, Spain now sees dark clouds on the horizon as popular destinations reach saturation point and holidaymakers are more thrifty, industry experts say.

Analysis & Opinion
Out of the dark: Five years on from Eta ceasefire
Sponsored Article
Last chance to vote absentee in the US elections
Spanish 'La Mafia' restaurants banned after Italian complaint
Spain's top court overturns bullfighting ban in Catalonia
Hunt launched for ten most wanted Brit fugitives hiding out in Spain
Napflix: Spaniards launch very boring TV channel for siestas
Madrid parish church faces fine over 'too noisy' bells
Celebrate expat life at Madrid’s THRIVE convention
Fury after kids told to bring their own loo roll to school
Disney announces plans for Don Quixote action movie
Activist tells 8-yr-old matador wannabe with cancer 'just die'
King to make last minute push to avoid third vote in Spain
Amazing photos of Catalonia's 'human tower' contest
What's on in Spain: October 2016
'No way, Jose! You'll never get your hands on our Rock'
Recipe: How to make a classic Spanish tortilla de patatas
Chorizo in paella? Go back to cooking school Jamie Oliver
Spain in eye of a perfect storm after 10 months without govt
Thousands share clips of life for 'Spain in a Day' film
Ten incredible Spain locations for Game of Thrones season 7
Analysis & Opinion
Why moving to Spain could be the best decision of your life
Seven reasons why autumn is the very best season in Spain
Spanish study finds four types of personality. Which are you?
New search underway for civil war grave of poet Lorca
jobs available