Renault’s Palencia plant faces a shutdown in October as demand for its cars falls. Unai Sordo, secretary general of CCOO, says the threat extends beyond one factory: Spanish car plants, including Renault’s in Palencia and Valladolid, could stop production if Chinese electric vehicles keep entering the market at prices local companies can’t match.
Renault plans to pause work at Palencia from October 1 to 18 or 19. Regional press and industry sources report that the company blames weak European demand, not politics. Valladolid, where Renault builds the Captur and Symbioz, also stopped its lines on September 25. The company says it is adjusting to the market, and several Spanish and international outlets have reported the stoppages.
Renault has announced plans to invest around 600 million euros in Spain by 2030, showing a long-term commitment to the country despite short-term production adjustments.
Sordo says Europe can’t let Chinese imports wipe out local jobs and wants rules to curb unfair competition. If Chinese companies invest in Europe, he says, they shouldn’t limit their operations to simple assembly; they need to build the whole supply chain there. That, he argues, is necessary to sustain real industry and avoid a focus on quick profits. Renault says in its press statements that the pauses are needed to match output to demand and keep its Spanish plants competitive. Industry analysts support this assessment.
Spain has made progress in electric and hybrid car production, Sordo acknowledges, but he says that progress won’t last without new investment. The sector is shaky, and global supply chains are in disarray. Sordo calls it “the disaster of Trump in the world.” Local media report that Palencia has run only a single morning shift since late June. Orders are down, and jobs are at risk.
Sordo also blames Spain’s far-right for pushing up car prices and blocking trade. He points to “the friends of Trump in Spain” as a problem for the industry’s future.
Following a 2024 EU investigation, additional tariffs were imposed on Chinese battery electric vehicles (BEVs), on top of the standard 10% import duty. The measures have already shifted trade flows and prompted Chinese brands to consider manufacturing within the EU, information from independent industry analysis. In Spain, Chinese EVs can face a 10% customs duty and 21% VAT, with brand-specific anti-dumping or compensatory levies also possible, significantly raising final prices for consumers.
The dispute extends beyond Spain. Germany has also pushed the EU to raise tariffs on Chinese plug-in hybrids, as reported earlier. Pressure is growing across Europe’s car-making countries.
Spain’s car industry risks losing its place in the electric car race without stronger action to protect investment and fair competition. Sordo warns that Spanish factories could be left behind if leaders don’t step up.
