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Článek

Concern in the motor industry

Publikováno: 10 October 2005

The Spanish motor industry has been threatened with restructuring for some time because of the unfavourable evolution of the market or the possibility of relocating production. These factors threaten employment stability and lead to pressure to reduce wage costs.

Download article in original language : ES0510201NES.DOC

The Spanish motor industry has been threatened with restructuring for some time because of the unfavourable evolution of the market or the possibility of relocating production. These factors threaten employment stability and lead to pressure to reduce wage costs.

At the end of the summer holidays of 2005, concern has once more returned to the motor industry (ES0404204N). In the first eight months of the year car production fell by 12.4%, affecting all the factories in Spain. This fall is attributed to the unstable evolution of the main European markets (Spain exports 85% of its production and the EU absorbs 90% of these exports), the increasing presence of Japanese and Korean firms in these markets, and the fact that several models produced in Spanish factories are at the end of their commercial cycle. This is the case of the 'Ford Ka' model that is assembled in Almussafes (Valencia), and the 'Opel Meriva' produced by General Motors in Figueruelas (Zaragoza).

The case of General Motors is illustrative of the behaviour in the industry. The factory in Figueruelas is pending the decision to be taken by the senior management of the multinational—probably by the end of this year—on where to locate the manufacture of the new 'Meriva' model, a small people carrier that will be launched to replace the current 'Meriva' in 2009. Two factories are competing for the manufacture of the new model: the one in Figueruelas, Spain and the one in Gliwice, Poland. The management of the Spanish General Motors factory has already sent its report for the selection process, with the support of the workers' committee and the trade unions. The reports sent by the two factories will be among the major factors taken into account by the multinational in their decision. According to the management of the company in Figueruelas, their factory has some advantages, including capacity, experience and sound engineering. The disadvantages include its geographic situation, as it is further from the main markets that are planned for this model, and the higher wage costs—almost triple those of Poland. The management of General Motors in Figueruelas have therefore warned that the future of the plant is at stake. Two models are currently manufactured in Figueruelas: the 'Corsa' and the 'Meriva'. The loss of the latter would be a hard blow for the employment and economy of the region. Many of the 7,500 jobs in the factory would be lost, and the local auxiliary industry would also be seriously affected (ES0402205F).

The case of Figueruelas is not exceptional. In September the Ministry of Industry (Ministerio de Industria) reached an agreement with the employers' organisations of car manufacturers (Asociación Española de Fabricantes de Automóviles y Camiones, ANFAC) and component manufacturers (Asociación Española de Fabricantes de Equipos y Componentes para Automoción, SERNAUTO), the Federation of Organisations of Innovation and Technology (Federación de Entidades de Innovación y Tecnología, FEDIT), and the trade unions MCA of the General Workers’ Confederation (Metal, Construcción y Afines de la Unión General de Trabajadores, MCA de UGT) and FM of the Trade Union Confederation of Workers’ Commissions (Federación Minerometalúrgica de Comisiones Obreras, FM de CCOO), to create two observatories for the motor sector, one for car manufacturers and one for component manufacturers. The aim of these industrial observatories is to optimise actions aimed at fostering competitiveness in the sector with regard to industrial and technological aspects. The strategic nature of the sector in Spain is obvious: the motor industry represents 5.8% of its gross domestic product.

This information is made available through the European Industrial Relations Observatory (EIRO), as a service to users of the EIROnline database. EIRO is a project of the European Foundation for the Improvement of Living and Working Conditions. However, this information has been neither edited nor approved by the Foundation, which means that it is not responsible for its content and accuracy. This is the responsibility of the EIRO national centre that originated/provided the information. For details see the "About this record" information in this record.

Eurofound doporučuje citovat tuto publikaci následujícím způsobem.

Eurofound (2005), Concern in the motor industry, article.

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