Sources at Basque automotive cluster ACICAE yesterday declared that the local automotive industry expected to increase turnover this year by around 11.8 per cent over last year, described as the “worst in the industry’s history.” Cluster executives are hoping to see total turnover of €9,304 million, thanks largely to the general improvement in the economy, the elimination of accumulated stocks, traction from emerging markets and new orders.

According to figures released by the cluster, the automotive industry’s turnover this your would end up /with the expected increase) nearly one thousand million euros above 2009, which came in at €8,324 million. According to the ACICAE figures, 2009 was the worst in the Basque automotive industry’s history, with a 25.5 per cent fall in turnover and a 10 per cent reduction in employment levels at Basque factories, leaving the workforce at 33,352.

Like most other areas, the automotive industry was hit by the brake on consumption, the financing squeeze, and the build-up of vehicle stocks, which in turn led, among other things, to reductions in output, adjustments in production and lower investment levels

At present, the Basque automotive components industry has 300 firms and 500 five hundred factories, 135 of which are outside Spain. Altogether, firms in the industry provide work for 60,703 people in 28 countries.

ACICAE also noted that the Basque automotive industry comprised 36 multinationals, 30 local business groups, plus a whole range of family businesses and cooperatives. Close to 79 per cent of the industry’s sales were made outside Spain, exports going mostly to EU-27 countries (46.2 per cent), while 32.5 per cent of sales went further afield, outside Europe’s boundaries.