Nissan to Begin Manufacturing New Vehicle in Spain, After Reaching Wage Deal image

Nissan announced it will begin manufacturing a new vehicle model in the Barcelona plant as it reached deal on wage cuts with the labor unions.

Last week, the automaker managed to reach a deal with the labor unions in Spain, after months of tense negotiations, which could have made the automaker give up its expansion plans in the country. As the agreement was reached, Nissan will create 1,000 new jobs in Spain and will invest 130 million euro ($178 million).

In May, Nissan announced that the Avila plant in Spain will begin manufacturing a new truck line by the end of 2013. The model will complement the Cabstar light truck and will help the automaker in its constant expansion in the European Commercial Vehicle segment, where the company aims at doubling the market share and sales volume in the mid-term.

“Securing this new model for Avila gives even greater choice to European customers, safeguards employment and further demonstrates the competitiveness achieved by our teams as a result of the social and industrial agreement reached in May 2010,” said Frank Torres, Nissan Spanish Industrial Operation Vice-president.

Earlier this year, VW announced it will expand in Spain, being the fourth automaker to expand its business in the country, after Renault announced in November it is hiring 1,300 people at its plants in the country and after Ford said it is shutting down a plant in Belgium and transfer production to Spain.