Renault to invest €600m in five new Spain models

Renault said Thursday it will invest €600 million in Spain by 2030 to produce five new car models, including two electric vehicles that it said would be its first made in the country.

The French automaker said the investment combines its own funds with national and regional government aid. The five models will be assigned to Renault plants in Valladolid and Palencia in northern Spain, but the company did not give details on the models or production volumes.

Christian Stein, Renault Group's general manager for Spain, said the company was showing its commitment to its Spanish plants despite a difficult backdrop for the sector. Renault also has production sites in Madrid and Seville.

Spain is Europe's second-largest car producer and has sought to attract investment with public aid, relatively low labor costs and energy costs.

The announcement comes as Europe's car industry faces weak demand, excess production capacity and stronger competition from Chinese manufacturers. Renault cited industry data showing European car plants operating at an average of about 50% of capacity.

Chinese carmakers have been expanding in Europe, including through local production plans. Ford and China's Geely announced in July a joint venture at Ford's Valencia plant to produce four models for Europe, while Stellantis said in May it would partially hand over its Madrid assembly plant to Chinese partner Leapmotor.