Morocco automotive boom threatens Spanish factories cost advantage

The labor cost represents approximately €90 per vehicle produced in Morocco, compared to €850 in Spain. This advantage allows the kingdom to absorb a significant portion of new industrial capacity, particularly those linked to electric vehicles and electronic equipment, according to the European Commission.

On Bladi.net : Morocco’s Automotive Industry Surges, Challenging Spain’s Dominance

The gap is also considerable with Turkey, where labor costs reach approximately €350 per vehicle. Facing Morocco, Spain must therefore rely on productivity, specialization and logistics to retain its automotive investments.

The situation is particularly difficult in the Vigo region. Weak European demand, supply chain disruptions and the transfer of investments toward electric platforms have led to layoffs at Stellantis and several of its subcontractors, including Akwel Vigo and CTAG.

In total, 671 employees are affected by job cuts recorded in twenty companies in Galicia. Brussels proposes mobilizing €2.72 million to support 400 of them toward new training or return to employment.

On Bladi.net : Automobile: how Morocco is shaking up Spanish factories

This is not necessarily a direct transfer of each Spanish factory to Morocco. But the European assessment is clear: when automotive groups choose where to install their new production lines, the kingdom now has an advantage that is difficult to overcome.