Auto Production surges in Spain

The National Automobile Manufacture Association (Anfac) has announced that the production at automotive plants in Spain surged 5.7 percent during the last month as compared to October 2008.

Output during the last month totaled 218,721 units along with private passenger vehicles stood at 184,119 units, up by 16.7 percent from October 2008.

However, production remained down by 14.5 percent year-to-date due to the fact that the local and European markets contracted sharply as the recession captured the markets all over the world in the year.

Around 186,918 vehicles, 85.4 percent of total production were sold abroad as demand in other European economies recovered. According to Anfac, the strong sales of private passenger vehicles were a product of efforts by administrations across Europe to encourage the auto business.

The automotive industry is one of the most affected sector by the recession in Spain, where retail sales and construction have declined sharply.

On the other hand, some of the foreign automakers with operations in Spain like General Motors and Nissan have already declared the plans to slash out thousands of their employees.

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