Navarra has a long-standing tradition in automotion. This sector represents a quarter of the region’s industrial GDP, which in turn accounts for 25% of the region’s entire GDP.
Carmaking in Navarra started in 1965 with the creation of a Spanish-British company – Authi – which later became Seat and then Volkswagen (VW) in 1984.
VW currently produces more than 300,000 cars of the Polo model per year, and employs 4,800 people directly.
The sector now has 112 companies representing revenues of 5.1 billion euros and direct jobs for 12,000 people, 4.3% of the region’s total employment. Exports from the automotive sector were 3.7 billion euros in 2016, i.e. 45% of total exports of goods from Navarra.
5.4% of component manufacturers for Spanish cars are located in Navarra. Most of them are working at full capacity.
The presence of Volkswagen Navarra has led to the development of a strong business fabric of component manufacturers, with almost 50 % at TIER2 level.
Some of the biggest companies in the sector are located in Navarra: Volkswagen, Faurecia, TRW Automotive, KYB, Delphi, Dana, Nucap, etc.
Why invest in this sector in Navarra?
The strategic location of Navarra on the two main logistic axes in Spain: North-South (Paris-Madrid) and East-West (Bilbao-Barcelona) allows easy access to Europe and the Spanish market.
Navarra is also strategically located to provide a service to several original equipment manufacturers (OEMs). For example, Tudela in the south of the region is just an hour’s drive car drive away from Opel (Figueruelas, near Zaragoza), Mercedes (Vitoria) and Volkswagen (Pamplona).
Navarra has a highly-skilled workforce to handle the present and future needs of the industry. The region’s education system offers good vocational and university programs for the automotive sector.
The flexibility and productivity of the labor force in Navarra is higher than in other Spanish regions and countries. Navarra is one of the most productive and competitive regions in Spain.
Specific infrastructures for the development of the sector.
- Naitec: A multidisciplinary technological center for industry in Navarra. Specialized in 4 areas: Electronics, Mechanics, Materials and Deposition of Materials. Its mission is to improve the competitiveness of companies through the development of R&D-based technology services and incentives for innovation.
- Circuit of Navarra: Located 55km south-west of Pamplona and well-connected to the transport network, it is the only motor racing circuit in north-western Spain.