During his visit to the Renault factory in Palencia, the Prime Minister Mariano Rajoy was informed of the industrial plan that the company intends to implement in Spain.
In a speech during his visit, Rajoy stressed that “we are celebrating some great news for the Spanish economy” that will lead to “extremely positive consequences for Palencia, Valladolid and Seville”.
Rajoy highlighted the creation of 1,300 jobs in Spain and “an increase of between 190,000 and 280,000 units to be manufactured annually at this plant in Palencia alone. We’re also talking about the manufacture of four new models in Palencia and a 30% increase in engine production in Valladolid and gearboxes in Seville”.
Rajoy said he believes that these positive consequences are not only limited to the generation of wealth at a local level because “all investment has knock-on effects throughout the economy and the Spanish equipment and component manufacturing industry, which posted revenue of 30 billion euros last year alone and is a sector with strong export activity”.
Rajoy insisted that Renault is demonstrating how Spain is a safe bet and “offers a privileged environment for all investment, for which there is a great need at this time, to generate a corresponding return”.
“The automotive industry is a pillar of the Spanish economy, one of our competitive strengths. It has been, is and will continue to be a strategic sector, with significant growth in the future”, said Mariano Rajoy. He also recalled that this industry “accounts for over 10% of Spain’s industrial GDP, is the leading national export sector with 22% of all Spanish exports” and employs some 250,000 people in Spain.
“In 2011, for the third consecutive year, Spain was the second-largest vehicle producer in Europe and we consistently remain among the top ten manufacturers worldwide. The vehicles manufactured here carry the “Made in Spain” label to almost 130 countries because nine out of ten vehicles that roll out of Spanish factories are headed for export”, said the Prime Minister.
He went on to express the Government’s support for a sector that he described as “cutting edge” and “capable of generating wealth and jobs even in these difficult circumstances”. “This commitment is a priority for my Government. That is what I said a month ago to the Global Chairman of Renault and to the local Chairman of the company in Spain and in June to various representatives of the European industry”, he said.
Rajoy stressed that the commitment to the automotive sector translates into active involvement by the Spanish authorities, with which wealth and jobs are being created in this sector. “It also leads to the positive culmination of a transformation in the automotive industry that has already begun to produce results, to support for the factories through the promotion of competitiveness plans, to incentives for electric vehicles and to the PIVE Plan”.
Thanks for reading Eurasia Review. For more of our reporting make sure to sign up for our free newsletter!