If you are a sports car fan or if you are among those who prefer to feel nature around you, while driving, you may have already heard names such as Scirocco or EOS. Sharan or Alhambra may also sound familiar if you like to have “everyone on board”. Though these names are “stars” in the automotive world you may not know that they are manufactured in Volkswagen AutoEuropa the flagship of the automotive sector in Portugal and also, consistently, one of the Top 5 best Volkswagen plants around the world. Manufacturing approximatly 100.000 cars per year, overseas customers – namely from Germany and the US - account for 98% of total production.
Volkswagen AutoEuropa has, of course, great impact in the Portuguese economy delivering 2% of the total GDP, but the automotive sector in Portugal has 40 years of tradition, and goes beyond this example of excellence. With an annual turnover of around 4.8 billion euros, and delivering about 170.000 passenger cars, light and heavy commercial vehicles, per year, the auto sector – including car and component production - is a center pillar of the Portuguese economy. It represents 4% of the total GDP, mobilizes a workforce of about 40.000 people and is one of the main exporting Portuguese sectors.
The automotive industry in Portugal hosts 5 car manufacturers, namely, Volkswagen AutoEuropa, PSA, Mitsubishi, ISUZU and Salvador Caetano and about 200 automotive supplier companies. CaetanoBus, a Salvador Caetano group company, is, for instance, a world leader in bus manufacturing for airports and is expected to deliver in the near future the first full-electric bus.
Portuguese technical skills in this field, the highly competitive set up and running costs and our great logistic infrastructures have been a driving force in this sector. Specially, for the automotive components wich has grown 200% over the past 15 years. Most of its total production is sent to international markets such has Spain, Germany, France and the UK. Portuguese companies are supplying carmakers with batteries, glass, plastic moulds, interiors, tires, metal works, cables and harnesses, car seats and electronics.
Furthermore, Portugal’s commitment in the development of a sustainable automotive sector goes even beyond developing high quality vehicles and components. As a pioneer in the development and adoption of new energy models for sustainable mobility, Portugal is also implementing the MOBI.E program.