Volkswagen to invest €4.2 billion in Catalonia and Navarra factories over next 4 years

Barcelona (ACN).- The German car manufacturer has announced massive investment in two of its factories in Spain: its plant located in Martorell (Greater Barcelona) and its factory in Navarra. In particular, Volkswagen expressed its intention to invest €4.2 billion between 2015 and 2019 in what many newspapers have called "the largest industrial investment ever made in Spain". According to estimates made by the Catalan Minister for Business and Employment, Felip Puig, it is likely that more than half of the total investment will be concentrated on the plant in Martorell, which builds Seat cars as well as models from other brands of the Volkswagen group such as Audi. In a meeting with the Spanish Prime Minister Mariano Rajoy, Volkswagen Global Sales Vicep President, Javier García Sanz, stated that the two plants that will receive the multibillion investment are among "the best factories of the Group". The German carmaker also said that it plans to bring further models to the Catalan and Navarran factories, but did not specify which models exactly. Volkswagen said that this information will be announced at a later stage.

According to the company, the investment will not only guarantee the future of the two facilities, but will also bear a very positive impact on the Spanish ancillary industry, both in terms of activity and employment. Indeed, the German group will significantly increase the procurement of parts and components manufactured in Spain, it announced.

In 2014, the Volkswagen factories in Martorell and Navarra produced between them some 748,400 cars from several brands of the group, representing a 13.1 % increase compared to the previous year. Currently, one in three vehicles manufactured in Spain is made by Volkswagen.

"The Group reaffirms its commitment to its role as the Spanish economy's engine with the largest investment ever made in the history of our country," said the car manufacturer's Global Sales VP, Javier García Sanz, and thanked Rajoy for his support to the automotive sector.

After a lunch meeting with representatives of the industry at Barcelona's International Car Show, the Catalan Business Minister declared that the investment announced by the German multinational is "great news" and a "sign of confidence" in the Catalan economy. Moreover, it "combats the message that Catalonia does not attract foreign investment". Felip Puig also stressed that Volkswagen will announce in the coming months more investments on new models to be manufactured in the Seat plant in Martorell.

Currently, the German carmaker employs 22,000 people in Spain through its various brands, distributed over 12 working centres: Seat de Martorell, Volkswagen Navarra, Volkswagen-Audi España, Volkswagen Financial Services, Volkswagen Group Retail Spain, Porsche Ibérica, MAN Truck & Bus, MAN Finance, MAN Diesel & Turbo, Scania Ibérica, Scania Finance, Italdesign Giugiaro Barcelona and Audi Tooling Barcelona.

Last year, the Volkswagen Group's turnover in Spain totalled approximately €13.8 billion, which amounts to more than 1.3% of Spanish GDP. In 2014, the German carmaker sold 216,250 vehicles in Spain, of which over 200,000 were passenger cars. Thus, one in four new cars and SUVs registered in Spain in 2014 were manufactured by Volkswagen.