Spain, the new Detroit of automakers

And 2.4 million cars are assembled every yearSpain became the second largest car production country, behind Germany. Manufacturers were already banking on Spain to make their own hot models. Now they are sending theirs gigafactories project like Volkswagen near Valencia. Star through its e-208 and Corsa-e series assembled in Zaragoza, it confirms the region’s appeal to car groups.

Eldorado who seduced him Ford this winter. The manufacturer preferred its Valencia factory over Germany to build its future electric model. Forecasts from the company Inovev show that Spain will produce 1.5 million electric cars in 2030, ahead of Germany and France (800,000 units). Spain attracts investors through its grant and loan program up to 1.7 billion euros (through the PERTE system) for the production of BEVs and batteries.

Labor costs, production and taxes

More than that, Labor cost largely explains this interest. The working hour is 38.7 euros in France, compared to only 22.4 euros in Spain (according to INSEE). The second point should be counted productivity. Thanks to more modern factories, a Spanish worker could produce up to 13.4 cars per year (according to ACEA), half as many as in France. Finally, Taxation has a big role. The weight of the mandatory deduction stood (in 2017) at 33.9%, compared to 46.5% in France (Rexecode data).

Note that Spain is also sufficient for its many domestic suppliers of auto parts. There will be a thousand of them to answer requests from manufacturers.

Chery is betting on Spain

The context had already led Volkswagen establish its neighborhoods there through the creation of a Europe’s mobility hub. The Future Fast Froward project combines the electrification of the Pamplona production site, Martorell, and the construction of a battery factory in Valencia.

An attractive environment that now seduces Cherry. The Chinese group is reportedly close to concluding a deal to manufacture its models at the former Nissan factory (closed in 2021) in Barcelona. Already on the Spanish market, the brand would focus on the production of BEV models, but also hybrids and petrols. A combination of engines necessary to meet the still sluggish demand for electric vehicles in Europe, and especially in Spain and Italy.