Spanish carmakers achieve record investment despite sharp profit drop

Vehicle manufacturers in Spain allocated 3,197 million euros to investments in 2025, up 24.7% from the previous year, according to ANFAC's annual report.

The companies' combined net profit fell 56.3% to 853.8 million euros. ANFAC director general José López-Tafall said the sector faces the greatest transformation in its history.

Revenue rose 3.8% to 80,315 million euros, while direct employment remained stable at 53,943 workers. Spain exceeded one million passenger car registrations and sales of electric and plug-in hybrid vehicles grew 96%.

ANFAC calls for lower electricity costs, faster return-to-work processes and the launch of the Auto+ Plan before the end of July. The association forecasts 1.2 million registrations in 2026.

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Volkswagen factory workers in Spain showing relief after job cuts were avoided.
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Volkswagen's 23,000 workers in Spain spared from job cuts for now

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Volkswagen's supervisory board rejected the company's most radical job-cut plan on Thursday, providing short-term relief to the group's Spanish plants.

The Council of Ministers has approved the regulatory bases for Plan Auto+ to subsidize purchases of electric and hybrid vehicles with up to 4,500 euros each.

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The dealers' association starts the Heavy Vehicle Auto Plan in a record year for the sector, with forecasts of 32,296 registrations in 2026.

Electric and hybrid vehicle sales in Chile grew 109 percent in the first four months of the year, driven by rising fuel prices linked to the conflict in Iran.

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The Clúster de la Industria de Automoción de Catalunya (CIAC) has announced its intention to go on the offensive to establish the region as an electromobility hub in southern Europe.

Stellantis has launched a labor adjustment at its Villaverde factory with an ERE for 175 workers and an ERTE for 89 more. The move comes as negotiations advance to transfer the plant to Chinese partner Leapmotor.

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The International Monetary Fund released its Article IV report on Spain on Friday. It warns of slower growth and inflation up to 4.8% in 2027 if the Iran war drags on.

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