Car production falls again

There is not much good new at the moment on the economic front. Car production in Spain fell by 25.9% in October compared to the same month last year, with the overall year to date decline being around 7.1%. However, this is expected to reach 10% by the end of the year.

In the wake of the crises in the construction and property sectors and with unemployment now at 11.3%, both consumer spending and investment have diminished somewhat as the proverbial belts are being tightened.

The Government and officials from the nine regions that have automobile production plants have been meeting to try and find a way to ease the situation. Foreign car manufacturers operating in Spain, such as Nissan and General Motors, have already instigated plans to restructure their operations, a measure which could affect thousands of workers.

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