Iveco Consolidates Daily CV Output at Spanish Plant

MADRID – Iveco increases production of its Daily range of 3.5- to 7-ton commercial vehicles at its plant in Valladolid, Spain.

The investment will increase yearly output at the facility 125 miles (200 km) northwest of Madrid from 30,710 units to a minimum of 38,500 on two shifts. Production could rise to 45,000 with the addition of a third shift.

The Fiat-owned CV maker is spending €36.5 million ($48 million) to upgrade the facility 125 miles (200 km) northwest of Madrid, with €15 million ($19.7 million) to be invested over the next 12 months.

The project also is receiving subsidies of €2.9 million ($3.8 million) from the Castilla Leon regional government, where the factory is located, and €2.6 million ($3.4 million) from Spain’s central government. The subsidies are meant to protect the current 964 jobs at the plant.

Iveco is concentrating output of the current Daily range at Valladolid, which it shared until a few weeks ago with the truck maker’s plant in Suzzara, Italy. The investment is meant to more quickly adapt Suzzara operations to production of the next-generation Daily starting in second-half 2014. Sales will launch in 2015.

After current-generation Daily production is phased out at Valladolid, the facility will specialize in assembling chassis-cab versions of the new CVs. It also will assemble some special versions of current Daily models for export to Europe, the Middle East and Africa.

In addition, Valladolid will make components for the Sete Lagoa plant in Brazil, where the Daily range is built for the five South American countries comprising the Mercosur common market.

Iveco sources say 86% of new-generation Daily production will be exported, with 60% bound for the European Union and 26% to markets outside Europe.