Renault has confirmed that it will produce a small electric vehicle at its Valladolid plant in Spain from 2011, adding an ‘ecological’ vehicle the following year and a further model from 2013, securing the immediate future of the factory.
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The announcement was made by Renault Spain director Jean-Pierre Laurent at a news conference attended by Spanish prime minister Jose Luis Rodriguez Zapatero. Although Laurent did not confirm figures, Spain’s industry ministry said that the company would invest around EUR500m (US$730m) in the projects.
Renault employs around 10,000 people in four Spanish factories. Valladolid had been slated to close in 2012 but will now produce 100,000 vehicles per year in 2013, including 20,000 electric cars, said Spanish industry minister Miguel Sebastian.
He added: “This secures the future of the Valladolid plant for the next 10 years.” However Renault was more cautious, saying it would guarantee work at the plant for only another five years.
French news agency noted the announcement came at a time when several other large automakers in the country were cutting workforces due to the global economic slowdown, adding to Spain’s unemployment rate of 18%, the highest in the European Union.
Opel’s new owners Magna International want to slash about 1,300 jobs at the Corsa plant in Zaragoza in eastern Spain. Nissan and Ford have also announced job cuts in the country.
Prime minister Zapatero described Renault’s announcement as good news for the Spanish auto industry “for Valladolid, the region, and above all for workers. We have qualified workers and companies have confidence in Spain.”
Renault said it decided to produce the models at Valladolid after reaching an agreement with unions over working conditions.
Laurent said Renault’s chief operating officer Patrick Pelata set two conditions for assigning the production of new models to the plant: that the factory be “competitive” and that “Spain be a country with a global plan to support electric cars”.
Earlier this month France unveiled plans to invest EUR1.5bn (US$2.2bn) on infrastructure for the 2m electric and hybrid cars it wants on the road by 2020.
Spain has so far announced small amounts in aid to support electric cars but it is planning a wider plan for the entire sector.
In addition to two plants at Valladolid, the company has a factory in the nearby town of Palencia and a fourth factory in the southern city of Sevilla.
The auto manufacturing sector accounts for about six of Spain’s economic output and 15% of exports.
