Spain’s car production fell 2% to 1.79m vehicles in the first eight months of 2006, deepening a worrying decline in the output levels of Europe’s third-biggest car making country.


According to manufacturers’ federation Anfac, the country made 1.3m passenger cars in the year to the end of August, down 4.85% year on year. Exports fell 4.5%.


Spain is suffering as European car makers shift output to cheaper locations in Eastern Europe. Last year, output fell 300,000 units.


Anfac said commercial vehicle production rose 1.1% to the end of August, however, while SUV output soared 52% to 71,000 units.


For the month of August, production increased 15% to 84,492 units, boosted by an 11% jump in passenger car output.

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