Spain’s car production this year will match the 2.9m units made in 2007 as rising sales in key markets Germany and France offset falls elsewhere in Europe, a spokesman for manufacturers’ federation Anfac told just-auto.
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“Germany and France are our biggest export markets and sales are expected to rise strongly this year so this will help us stay in last year’s range,” David Barrientos said, adding that the German and French performance will counter slumping sales in the other top markets, the UK and Italy.
His comments contradict some local market observers who say output could fall slightly against last year’s levels. Barrientos said Anfac has no plans to revise the forecast later this year.
Anfac expects Spanish passenger and commercial vehicle sales to plunge 20% and 30% respectively in 2008. But, because Spain exports about 80% of production, plunging domestic sales are expected to have a minor impact.
Car output fell 15% in June year-on-year but this was due to a major transport strike which delayed assembly of 28,000 cars, Anfac said in a statement. It hopes the industry will make up the losses through production efficiencies.
Anfac reiterated that Spain must improve transport logistics while tackling sky-rocketing inflation. The country’s inflation rate is significantly higher than other EU countries, “further robbing our industry’s competitiveness,” it claimed.
Anfac’s forecasts came as Italian tyre manufacturer Pirelli said it would cut production capacity by 30% at its Manresa, Barcelona factory, dismissing 280 workers and adding gloom to an already battered auto parts industry.
Pirelli blamed plunging vehicle sales and soaring raw materials prices in Spain for the decision. The company also scrapped plans to build a new factory in Manresa, near Barcelona, prompting heavy criticism from government officials.
Pirelli said it would convert the factory, which employs 800, to make more ‘value-added’ tyres.
Spanish unions have threatened to oppose the move.
Ivan Castano Freeman
