2nd October 2026
Barcelona NewsBusinessCatalonia NewsEconomy & EmploymentIndustryMadrid NewsMain News

Renault puts Spanish production expansion on hold in labour dispute

Renault’s Spanish division has announced that it is putting on hold plans to assign new vehicle production to its factories in Spain after failing to secure an agreement with unions, raising the possibility that future manufacturing could be moved to other countries.

The decision impacts three upcoming electric and hybrid models that had been scheduled for production from 2028 at a new platform in Palencia (Castilla y León), while existing plans to continue building two hybrid models at the Valladolid plant in the same region remain unchanged. Together, the two facilities employ around 6,000 workers.

In a statement, the French automaker said its proposal represented a final offer to unions, warning that without a deal it would scale back manufacturing capacity in Spain, refrain from assigning new models, and be unable to guarantee current employment levels.

The move deals a setback to Spain — Europe’s second-largest car producer — which has been working to draw fresh automotive investment through incentives such as public funding and relatively lower labour and energy costs compared with neighbouring countries.

Sergio García, the CCOO union leader at Renault, said he was taken aback by the company’s stance and insisted that unions remain willing to negotiate.

‘We have time. The positions are not so far away as they seem,’ he said.

García added that unions are pushing for better pay and improved working conditions, including measures to reduce factory temperatures, which can climb to 35C during the summer months.

Enjoying the news from Spain in English? Add us as a preferred news source in Google.

Subscribe to the Weekly Newsletter from Spain in English.

Subscription Supporter Banner

 

 

 

 

Click here to get your business activity or services listed on our DIRECTORY.

Click here for further details on how to ADVERTISE with us.

Recent Posts

Felipe VI and Letizia to visit Ceuta and Melilla in October following migration crisis

News Desk

Sánchez apologises to Macron over treaty rejection as leaders reaffirm Spain-France ties

News Desk

Spain orders investigation into alleged military abuse of migrants in Ceuta

News Desk

Cabinet approves two housing decrees after Madrid eviction, but faces uncertain vote in Congress

News Desk

Spain to cap household gas price rise at 15% as energy costs climb ahead of winter

News Desk

Evicted Madrid pensioner could return home under eight-year rent agreement

News Desk

Leave a Comment