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Automotive Manufacturing

Aragon, a leader in the automotive industry in the midst of transformation

Aragon’s automotive industry remains a key pillar for the Spanish and European economy, standing out as a benchmark for competitiveness, innovation and sustainability.

This is the main conclusion reached in one of the debates held at the “Invest in Aragón” event organized by Capital Radio and the Government of Aragón on November 10 at the Zaragoza Chamber of Commerce, where industry experts discussed the advances, challenges and opportunities for this dynamic sector, which is undergoing an unprecedented transformation, driven by electrification and new mobility solutions.

Participants in the meeting included Mar Paños, General Director of Industrial Promotion and Innovation of the Government of Aragon; Elena Latorre, General Director of MANN+HUMMEL Ibérica; and David Romeral, manager of the Automotive and Mobility Cluster of Aragon (CAAR).

Aragon, a strategic center for the Automotive Industry

Aragon is recognized as one of the main automotive hubs in Spain, with the presence of one of the major manufacturers: Stellantis, as well as more than 300 component supplier companies that also supply other global brands. Eighty percent of the vehicles manufactured in Spain are produced within 350 km of Zaragoza, and 90% of the country’s automotive components industry is located in Aragon. This concentration of companies, distinguished by their high competitiveness and innovation, makes the region an international benchmark in the automotive industry.

In addition, Aragon benefits from its strategic location, situated in a key logistical corridor for the sector, which makes the region a first-rate transportation hub for the automotive industry, facilitating distribution at both national and European level.

Industry transformation and challenges

The industry is currently facing a profound transformation, driven by the transition to electric vehicles and new mobility solutions. Aragonese companies are investing heavily in research and development to adapt to these changes, with Stellantis leading the production in Spain of three fully electric models at its Zaragoza plant.

In this context, innovation in production processes is essential to maintain global competitiveness. The integration of new technologies, cost reduction and improved sustainability are some of the focuses of work that will enable companies to remain a benchmark in the global market.

The challenge of training and talent retention

One of the biggest challenges facing the automotive industry in Aragon is the shortage of qualified talent, especially in technical areas such as mechatronics and mold making. To address this need, the Government of Aragon is driving several key initiatives:

  • The development of a Talent Plan to train, attract, retain, and in some cases repatriate, qualified professionals in all sectors.
  • The creation of training and retraining programs for workers, adapted to new technologies and industry demands.
  • Collaboration with universities and vocational training centers to align educational programs with market needs.
  • The organization of awareness days aimed at showing young people the opportunities offered by the industrial sector in general, and changing the perception of modern manufacturing.

Challenges and opportunities for the future

Experts agree that, in order to consolidate Aragon’s leadership in the automotive industry, it is necessary to:

  • Promote the region’s strengths and competitiveness, attracting both investors and highly qualified talent, both nationally and internationally.
  • Reduce bureaucratic barriers and simplify administrative processes to encourage business growth and investment.
  • Increase investment in education and training programs to ensure a steady supply of skilled workers who can contribute to the future of the sector.
  • Improve the perception of the industry among young people, highlighting the professional opportunities offered by the sector, as well as its innovative and sustainable nature.
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Automotive Sin categoría

Magna will invest 15 million euros and create 50 new jobs backed by aid for R&D from the Government of Aragon

Magna Automotive expands its production in Aragon boosting their line of electric vehicles
Aragon consolidates its commitment to R&D subsidizing 28 new business projects that promoted an investment of 60 million euros

Magna Automotive will invest 15 million euros in its Pedrola plant over the next two years, which will be allocated mainly to new production lines for components for electric vehicles and the improvement of current processes, supported by aid for R&D in mobility of the Department of Economy, Planning and Employment of the Government of Aragon. With these projects under development and other products in the launch phase, the company expects to generate 50 new jobs.

Magna Automotive has been awarded a total of nearly 1.2 million euros through the two calls for R&D grants aimed at the automotive sector launched to date by the Department of Economy. The last of them, published last year, has made it possible to support one of Magna’s experimental development projects and ten other business proposals linked to sustainable mobility, in addition to four business initiatives in the pharmaceutical sector and 13 in the circular economy. These 28 subsidized business R&D projects in 2021 have made it possible to promote an investment of 60 million euros in Aragon.

In 2019, the Department of Economy had convened for the first time this type of R&D aid aimed exclusively at the development of the electric vehicle, subsidizing another nine different projects that have generated an investment of 53.9 million euros in Aragon. In that first call, Magna received a grant to create a hot stamping battery tray for electric vehicles.

The company has thanked the Government of Aragon for its support in their current and future plans which reinforces the commitment to the territory, people and industry as an economic engine for development.

Producing in Aragon since 2016

The Magna group is one of the main suppliers in the automotive sector, being a leading company in the use of technology and offering advanced solutions to facilitate mobility. Globally, the company has more than 161,000 employees and an organizational structure designed to innovate and adapt with agility. Magna’s 60 years of experience are supported by a unique systems approach for design, engineering and manufacturing that encompasses most vehicle components. Their global network includes 340 manufacturing operations and 89 sales, engineering and product development centers in 28 countries. The company is committed to a business model based on long-term sustainability and integrates Corporate Social responsibility policies into its processes.

After managing its implementation in our Autonomous Community with the support of Aragón Exterior / Invest in Aragon, this Magna division has been operating in Pedrola since 2016. At this time, the plant is focused on the manufacture of components for vehicle bodywork with a high level of automation and has a workforce of more than 300 people. The company expects to reach a turnover of close to 75 million euros in 2022 due to the specialization in hot stamping processes, laser cutting and assembly of parts through resistance welding and MIG/MAG. Components are served to the main automobile manufacturers, not only in Spain but also in several European countries.

As a complement to its productive work and to give greater impetus to its innovation and development activities, the company has been working for several years with the University of Zaragoza and has its own Collaboration Chair. The commitment to local talent and internal development has allowed the company to consolidate a high-level production and technical team through specific qualification programs.

Source: Aragonhoy