James Bryce
SPAIN’S motoring industry is set for an adrenalin boost after plans were unveiled to increase annual car production to three million.
The initiative will create 73,000 jobs, increase Spain’s overall exports by 4% and raise GDP by 1%, according to the association of Spanish car producers, Anfac.
Around 2.5 million cars are to be exported, while 500,000 will be sold within Spain.
It will also lower the average age of cars in Spain from 10 years to eight.
Spain’s car production in 2011 was 1.8 million.
It’s great to produce 3 million cars compared with 1.8 million in 2011, but where are the 2.5 million customers for the exported cars?? Unless productivity and quality improve, or prices are slashed, they will be left on the forecourts surely.
We seem to be brilliant at creating one sided equations. Raising production without equally raising demand doesn’t balance out.
We are seeing a similar trend here in the UK, with sales and production both up over the previous year: “http://www.whatsmycarworth.co.uk/news/automotive-manufacturing-up-on-2011”