The Car Industry in Spain: 2005 Update




Spain is World's Number 3 Car Exporter

Spain is a large market for the importing of vehicles and the world's third largest car exporter, behind Japan and France. But in the three first months of 2005, there are signs of alarm. The stagnation or backward movement of the main markets for Spanish cars (Germany, France and Italy) has hit the Spanish factories, with production reduced by 15.2% and exports by 11%. Factories worst affected are Citroën, Vigo (-21.7%), Ford, Valencia (-18.1%), Seat, Barcelona (-18.1%) and Opel in Zaragoza (-16%). The Nissan factory in Zona Franca, Barcelona was the only one that had an improvement of the production, 21.6%, thanks to the launch of the Pathfinder.

The place of production of a car is not a determinant factor in the sale. In an industry mundializada, the multinationals do not incorporate the manufactured in Spain as business strategy. In the 2004, the cars sold in the country that you left of the 18 Spanish plants were a 30% of the total. But yes a local effect by the one exists that in the next area to a factory cars of that model are sold more.

To>> The buyers do not value the origin

The times in which everyone identified the 600 as a tourism manufactured in Barcelona they remain already very far away. The consumer does not include in the purchase motivations list the place of production, but the price and, to a lot of distance, the prestige and image of mark, the security, the benefits, the design and the consumption, according to a study of AC Nielsen. With respect to the intention of purchase, the marks preferred are Peugeot, Audi and Renault, you followed to more distance by Citroën and Seat. The reality is that from January to April, the five most sold marks were Renault, Citroën, Ford, Peugeot and Seat, that have a long tradition of best-seller.

Reduction in the number of cars made in Spain

The factories of outside cars of Spain removed a greater benefit of the increment of the market in the 2004 with an increase of the importings of 171.000 tourisms, equivalent al 19%. On the other hand, the sales of vehicles made in Spain descended a 7,4% and they passed to have a weight in the assembly of registrations of almost the 36% al 30%, according to the report on the sector of the transport edited by the service of studies of the Fira of Barcelona because of the Parlor of the Car. The president of the association of manufacturers (Anfac) and of Renault Spain, Juan Antonio Fernández Seville, assures that the oscillation of sales of the cars manufactured in the country is owed only al cycle of life of those models and al launch of some new. Nevertheless it admits a "local or regional effect" in the areas where they are installed the factories. "Everyone in Palencia and Valladolid -- indicates -- knows that the Megane and the Modus are produced in the factories that Renault has there". The same can tell itself of Ford in Valencia, Opel in Zaragoza, Citroën in Vigo, Peugeot in Madrid, and Seat and Nissan in Barcelona. In the case of Seat, Spain is the most important market with a 34% of the sales in the 2004.

C>> The most expensive car, a Nissan of 40.000 euro

Spain is a great low and average range cars factory. The specialization arrives al extreme to be become supplier unique world, as in the case of the Modus. Some of the best-seller they have the local seal, like the Citroën C3 (Madrid) and Xsara Picasso (Vigo), the Renault Megane (Palencia), the Ford Focus (Valencia), the Seat Ibiza (Martorell), the Opel Corsican and Meriva (Zaragoza) and the Volkswagen Pole (Pamplona). One of the news of the Parlor of the Car, the off-road vehicle of Nissan Pathfinder and its derived pick up Navara, will become the car of higher price (40.000 euro) and of "greater technological level" of them produced in Spain, as said with pride the delegated counselor, José Vicente of the Boys. The productive specialization of Spain in that range of vehicles can lead to him some problems by the growing competence situated in the other extreme of Europe and in other continents. An example is the replacement of the model one Volkswagen Lupo, manufactured in Germany, and Seat Arosa, produced in Martorell, by the Fox, a small car that comes from Brazil. Several multinationals have placed in motion projects to manufacture in Europe of the east small cars for take advantage of thus the smaller production costs. Renault manufactures in Romania the model one Logan, that wants to become a car popular in emerging countries and to obtain a pinch in the western markets. To Spain will come leave from June as scout in Europe western. In Barcelona will also be able to see the new car that will manufacture jointly Toyota, Peugeot and Citroën in the Czech Republic.

World Markets Automotive Productivity Index for Europe - Results for 2000 cont.

Actual Vehicles per Employee

                                                                              
  Manufacturer                            Produced  1997   1998   1999   2000 
               Plant          Country     in 2000                             
  Nissan       Sunderland   UK            327,701   98     105    94     101  
  Toyota       Burnaston    UK            171,338   58     72     81     86   
  Ford         Saarlouis    Germany       383,893   59     59     77     81   
  GM           Eisenach     Germany       145,200   77     76     82     81   
  Ford         Valencia     Spain         343,794   57     58     73     77   
  GM           Antwerp      Belgium       329,300   n/a    n/a    63     77   
  Renault      Valladolid   Spain         280,667   59     64     71     77   
  Volkswagen   Pamplona     Spain         376,164   77     76     60     77   
  Fiat         Melfi        Italy         364,882   70     73     70     76   
  Renault      Novo Mesto   Slovenia      122,919   n/a    n/a    n/a    73   
  Renault      Palencia     Spain         255,621   n/a    n/a    69     71   
  SEAT         Martorell    Spain         516,146   69     69     66     71   
  Renault      Flins        France        379,722   57     59     80     70   
  Renault      Douai        France        399,933   61     68     68     67   
  Renault      Maubeuge     France        245,648   n/a    56     63     67   
  PSA          Aulnay       France        401,370   51     58     62     64   
  GM           Zaragoza     Spain         373,600   67     67     69     62   
  GM           Bochum       Germany       350,000   n/a    n/a    n/a    62   
  Ford         Dagenham     UK            148,000   62     61     60     62   
  Fiat         Termini      Italy         153,265   n/a    n/a    n/a    61   
               Im.                                                            
  GM           Ellesmere    UK            169,200   n/a    n/a    n/a    60   
               Port                                                           
  PSA          Mulhouse     France        425,764   55     58     61     59   
  Fiat         Tychy        Poland        241,651   n/a    n/a    n/a    59   
  Fiat         Mirafiori    Italy         379,733   54     61     58     57   
  PSA          Vigo         Spain         437,162   35     52     52     56   
  Honda        Swindon      UK            74,017    62     64     83     55   
  PSA          Ryton        UK            187,797   n/a    n/a    n/a    55   
  Peugeot                                                                     
  Daimler      Rastatt      Germany       200,000   n/a    n/a    48     53   
  Chrysler                                                                    
  MG Rover     Longbridge   UK            178,557   34     31     n/a    52   
  (1)                                                                         
  GM           Luton        UK            112,900   39     43     47     49   
  Volkswagen   Wolfsburg    Germany       686,240   39     42     50     46   
  Volvo        Ghent        Belgium       122,200   n/a    n/a    n/a    45   
  Fiat (2)     Cassino      Italy         219,096   39     40     44     See  
                                                                         note 
  PSA          Poissy       France        282,985   36     45     43     44   
  Volvo (3)    Born         Netherlands   156,336   36     50     n/a    40   
  Volvo        Torslanda    Sweden        133,680   n/a    n/a    n/a    40   
  PSA          Madrid       Spain         166,272   n/a    n/a    n/a    40   
  Peugeot                                                                     
  PSA          Mangualde    Portugal      49,753    n/a    n/a    n/a    40   
  Peugeot                                                                     
  PSA          Rennes       France        245,860   n/a    41     39     35   
  GM           Russelsheim  Germany       189,400   n/a    n/a    n/a    34   
                                                                              
  Skoda        Mlada        Czech         264,592   33     35     32     34   
               Boleslav     Republic                                          
  PSA          Sochaux      France        250,861   25     31     31     34   
  Renault      Sandouville  France        194,831   36     41     40     32   
                                                                              
  Volkswagen   Emden        Germany       225,693   28     37     29     27   

Source: World Markets Research Centre (WMRC)