Automakers in Spain announced they aim to boost their output capacity by nine percent in 2014, driving up exports to overcome sluggish demand at home.
Manufacturers plan to raise production from 2.2 million automobiles this year to 2.4 million next year, an increase of 9%, said David Barrientos, spokesman for the National Association of Car and Truck Manufacturers (ANFAC).
“Domestic demand is beginning to pick up timidly, notably thanks to scrappage incentives,” ANFAC president Rafael Prieto said at an industry forum in Madrid. “But we have still got a long way to go,” he cautioned.
Alongside Seat, a Spanish manufacturer wholly owned by the VW Group, the country also 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% of Spain’s total economic output, aims to boost output to three million vehicles in 2016. Almost 90% of the cars made in Spain are destined for export.
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.
) - Thursday, October 17th, 2013 - filed under Industry
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