VW to invest 785 million euros in Spanish plant over next 5 years

Article by Anita Panait, on January 24, 2013

Volkswagen will invest around EUR785 million ($1 billion) in a plant near Pamplona, Spain over the next five years. VW’s plant has a workforce of around 4,600 people, helping produce the Polo subcompact. The plant has the capacity to produce up to 300,000 cars a year, making it one of the group's biggest producers.

A big chunk of the EUR785-million investment will be spent to prepare installations for building the next generation of Polo as well as its future replacement, Volkswagen said in a statement. VW is the third carmaker in recent months to boost investment in Spain. In November 2012, Renault announced it would be hiring 1,300 new workers for its plants in Spain.

Ford also announced it would shut down its site in Belgium shift production to Spain. Nissan, on the other hand, recently announced that it was cancelling plans to expand production of a new model in Spain, following a failure to secure a deal with its union workers over new contract terms.

Nissan said the cancellation of its expansion plans means Spain would miss a chance to see 4,000 new jobs and a EUR130-million investment. The Spanish government has commended the fresh investments by VW, Nissan and Ford, saying they are the result of a labor market reform that makes Spain more competitive for businesses as well as cheaper for companies to hire and fire employees.

Topics: vw, investment, spain

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries