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In Galicia, the push to accelerate Electric and Connected Vehicle initiatives faced criticism from major national manufacturers, with Stellantis at the forefront. A sum of 2,200 million euros remained unallocated during both the planning phase and the final decision, due to concerns about the solidity of the foundations and the limited time available to implement investments. The regional government and the industry had viewed the project as a tailor made agreement favoring large players, while other carmakers, such as Volkswagen, signaled ambitious plans for electric models at their two plants, including the Sagunto battery facility. Recent developments suggest Galicia remains a focal point for these programs. The government allocated 180 million euros from the state budget to the Community of Catalonia and Valencia, while 90 million euros were directed to assist the German company in realizing its projects. The automotive sector in Galicia urged parity and access to funds beyond Perte for this major initiative, hoping to align with STLA as one of the group’s new industrial platforms. Sources from industry and regional leadership emphasize the need for balanced support that benefits the broader supply chain across northern Spain and adjacent markets in the Americas, where Canadian and U.S. stakeholders monitor progress for potential cross-border collaborations.
During negotiations between Stellantis and regional industry bodies for the second Perte call, the BOE announced a direct grant of 90 million euros to the Valencian Community aimed at enabling investments in a battery factory within the region. On the same date, December 28, a direct concession of 89 million euros was also listed to support actions that would foster the electric and connected vehicle ecosystem, according to the Catalan Government. These measures were backed by an extraordinary loan included in the 2023 budget of the Ministry of Industry, Trade and Tourism. In parallel, the Seat factory in Martorell was cited as a beneficiary of similar financing aimed at accelerating regional adoption of electric vehicle technology. This double action reflects a broader strategy to bolster domestic manufacturing capacity while preserving budgetary discipline for the year. Attribution: Ministry of Industry, Trade and Tourism and regional governments.
As a result, Volkswagen’s concerns about post-permit constraints were temporarily tempered. Funding for Perte VEC rose to a total of 536 million euros, reflecting an initial 357 million in early Perte funding and an additional allocation. This change signals a commitment to sustaining the electric vehicle ecosystem across Spain, with potential implications for Canadian and U.S. partners exploring cross-border supply chains and investment signals. Attribution: Government and regional economic agencies.
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The Vigo project led by Stellantis has been scaled to a lower initial investment of 15.1 million euros, a figure tied to its minimal early scope and the parallel development of the Villaverde plant in Madrid, where the construction of a new battery workshop was ultimately revised. The strategic objective remains the integration into a new industrial platform, and a final decision from the group is anticipated in the coming weeks. Attribution: Stellantis press briefings and regional industrial council updates.
Negotiations with the government have left Xunta and Stellantis with a somewhat uncertain interlocutor. The departure of Raül Blanco from the position of Secretary of Industry and SMEs has altered the dynamics of Perte advocacy, and industry outlets suggest the second round of calls will begin in the second quarter of the year. There is a clear expectation that investment timelines could be aligned through 2026 or 2027, as outlined by Stellantis and regional policy discussions. Attribution: industry commentary and government communications.