Morocco automotive industry threatens Spanish factories jobs

The European Commission proposes mobilizing 2.725 million euros to support 400 laid-off workers in Galicia. In total, 671 workers from twenty automotive companies and equipment suppliers are eligible for the scheme.

On Bladi.net : Morocco: Europe’s automotive factory?

Job cuts affect notably Stellantis Spain, Akwel Vigo, BorgWarner, CTAG and several subcontractors based around Vigo. The funds must finance training, employment support and mobility assistance.

In its document, the European Commission links this crisis to weak European demand, supply chain disruptions and the shift of investments towards electric vehicles.

Brussels especially highlights a spectacular competitiveness gap: labor costs represent approximately 90 euros per vehicle in Morocco, compared to 850 euros in Spain. The kingdom and Turkey thus absorb a large part of new industrial capacity, while Spanish factories must multiply productivity gains to remain competitive.

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

European aid therefore does not finance companies, but the retraining of workers affected by this restructuring. The first measures are to start in September 2026