Automobile: Morocco, the new industrial El Dorado that is shaking Spain

– byPrince · 1 min read
Automobile: Morocco, the new industrial El Dorado that is shaking Spain

With a qualified and less expensive workforce, and tax incentives, Morocco has become the El Dorado for European manufacturers who are struggling to make their production profitable in Europe.

Before his departure from Stellantis a few months ago, Carlos Tavares predicted a complicated scenario for the Spanish automotive industry. The executive stated that Morocco represents a threat to the Spanish automotive sector. This is why he has transferred the production of some of his most important models, such as the 208 and probably the future C4, to his plant in Kenitra, Morocco. Stellantis has also set up an engine plant in Morocco. An investment that worries Spain, which does not produce engines for Stellantis.

The study on production costs, "Getting Under the Hood of Automotive Labor Cost per Vehicle" by Oliver Wyman, cited by El Español, reveals that Europe is the most expensive continent in the world in terms of production, particularly due to the high cost of labor. The report indicates that the labor cost per car in Spain is $955, far from the $3,300 in Germany, $600 in China or $110 per car in Morocco.