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.
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⚠️ ULTIMATUM EN RENAULT ⚠️
— CCOO Castilla y León (@CCOOCyL) May 7, 2026
❌ La empresa suspende adjudicaciones.
❌ Amenaza con llevarse la producción fuera.
✅ CCOO planta cara: pedimos responsabilidad y un convenio justo para las plantillas.
¡El futuro de nuestras fábricas no se negocia bajo presión! 🛡️💼… pic.twitter.com/cXWSZriDTV
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