Spanish car production will fall 7.7% to 2.78m units this year, as the industry continues to suffer from sagging European demand for its small and midsize models, component makers lobby group Sernauto said.


Meanwhile, Basque Country-based parts maker Maier confirmed that it would invest EUR10m to build a new components factory in Prostejov, Czech Republic.


Sernauto’s forecasts are slightly more optimistic that those previously released by vehicle manufacturers federation Anfac, which estimates that production will fall 10% to 2.7m vehicles. According to Sernauto, production will also slip 2% to 2.72m vehicles in 2006.


Sernauto echoed other industry observers’ concerns about the dire straits of the Spanish vehicle and components industries. Apart from slumping manufacturing rates, it said that parts suppliers are suffering from lower parts prices and higher steel, aluminium, plastic, resins and oil costs.


Seranauto said that Ford’s output this year will fall 17% to 372,000 units while Nissan will lead the pack with a 32.6% gain to 192,000 units. Best selling brands PSA Peugeot-Citroen and Renault will make 542,000 units and 445,000 units, down 9% and 14% respectively. Seat ouput will fall 5.6% to 393,00 units while Volkswagen‘s production will dip 9.7% to 210,000 units, the lobby group added. Ford’s Spanish unit could not immediately be reached for comment.

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Reflecting a growing trend in the components sector, Maier said it would expand outside Spain to move closer to the growing number of car-making customers establishing shop in Eastern Europe. The company intends to inaugurate the 6,500m2 plant in June 2006.


Ivan Castano