Spain’s car production surged 9% in 2013 image

As automakers including PSA Peugeot Citroen, Renault, Opel, Nissan and Seat benefited from increased demand, Spanish car production grew 9 % to 2.16 million units last year.

The auto industry has benefited from new labor laws that helped attract foreign investment, a government-backed subsidy scheme in Spain and demand growth in markets such as the United States, Turkey and North Africa. Also, output is expected to keep growing in 2014, according to the country’s carmakers’ association, Anfac.

Anfac said about 87 % of the cars produced in the country were sold abroad, resulting in an automobile trade surplus of 15 billion euros ($20.4 billion) in the January-to-November period. Spain has 17 car plants producing 39 different models.

However, while car manufacturing and tourism are the main drivers of a tentative recovery from a five-year slump, the car industry’s impact on job creation has remained limited. Close to 6 million Spaniards are out of work and high unemployment – currently at 26% – is expected to persist for years.

Via Automotive News Europe