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Automobiles or the two faces of Spain’s economy

deercreekfoundation November 10, 2025
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Barcelona had a SEAT. Valencia, Ford. In Vigo it was a Citroën and in Zaragoza it was an Opel. part of The economic awakening of the Spanish Autonomous State in the 20th century took place thanks to the automobile industry. Not only did they create thousands of direct jobs, but ancillary industries created hundreds of thousands more, making Spain a global giant in the parts industry. Cranks, windows, seats…European roads were filled with “Made in Spain” auto parts.

But the sector is undergoing forced consolidation (General Motors briefly went bankrupt, for example, and its factory in Zaragoza is now owned by Stellantis, as is its factory in Vigo), reaching the limits of electric motors and dangerously losing jobs (10% so far this decade). Spain has done well in terms of finding other niche markets, but it must continue to fight for industries that clearly represent a unique niche.

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