Spanish car factories have a problem that goes beyond pay. Absenteeism in Moroccan car plants is under three percent; in Spain, daily absence rates range from nine to ten percent. Spanish executives now see this as a direct threat to their factories.
The gap has practical consequences. It means more cars built and millions saved on payroll, strengthening industry leaders’ view that Morocco has become a serious production rival, not merely a cheap alternative.
Recent industry analyses put labor costs per car in Morocco at just $106, making the country one of the world’s most cost-effective locations for automotive manufacturing, information from Oliver Wyman.
Renault and Stellantis have both established a strong presence in Morocco. Renault runs two major plants: Somaca in Casablanca, which turns out about 100,000 vehicles a year, and a larger site in Tangier, already producing 300,000 units and still growing. Stellantis’ Kenitra plant, open since 2019, produces around 200,000 cars each year. Together, the three plants employ about 13,000 people.
Recent sector reports put Renault’s Moroccan output higher than before. The Tanger and SOMACA plants together are expected to produce between 394,000 and 413,000 vehicles in 2024-2025, about 17% of Renault’s global production. Stellantis’ Kenitra plant now makes over 70,000 small models and electric quadricycles a year, and is designed for a target of 535,000 vehicles. Several industry sources confirm the figures, which show Morocco’s growing place in the global car supply chain.
Spanish managers are particularly struck by how the workforce operates. Moroccan plant workers earn 500 to 600 euros a month, less than a third of Spanish workers’ pay. Wages are only part of the difference. Attendance rules are strict: workers who do not show up do not get paid. More than 100 euros of each worker’s pay depends on attendance. This policy, combined with weaker worker protections, keeps absenteeism low.
The Euro-Mediterranean Agreement of 2000 and specific rules of origin have helped integrate Morocco into European automotive supply chains. Vehicles made in Morocco can enter European production networks under this structure, which industry analysts cite as a basic driver of sustained growth and export orientation, information from an industry analysis.
Age matters too. Spanish factory teams are usually between 40 and 50 years old. In Morocco, most workers are in their twenties and thirties. The younger workforce brings more energy to the line and greater flexibility, widening the productivity gap.
Morocco also faces challenges. During Ramadan, European manufacturers have to adjust schedules and routines for workers who do not eat or drink during daylight. The effect on output, but, is small compared with Spain’s ongoing absenteeism problem.
Industry leaders have warned about this for years. Stellantis CEO Carlos Tavares has said Spain should worry more about competition from the south than from northern Europe. The figures support his point: Moroccan plants cost less to run and have more reliable daily staffing.
For Spanish factories, the message is clear. As automakers pursue every gain in efficiency, Morocco’s lower labor costs and near-full attendance are forcing a rethink of what makes a plant competitive. A younger workforce adds to that pressure. The same forces are already hitting Spain’s car sector, as a recent report shows, with electric vehicles shaking up old business models.
Morocco’s rise as a car-making hub reflects factory-floor discipline as well as lower costs. Spain, with its older workforce and stronger labor protections, is struggling to keep pace. If Spanish plants cannot address absenteeism and adapt to changing labor realities, the country could lose its edge in one of its biggest export industries.
