On Tuesday night, the government of Catalonia signed, but suspended, a declaration of independence from Spain.
Led by Catalan president Carles Puigdemont, the north-eastern region held an independence referendum that was highly controversial and marred by violence.
The final results, consistent with Catalan officers, became 90% in favour of sure ? Even though this has been contested. The vote become declared unconstitutional and illegal through Spain?S important government and denounced with the aid of the European Union.
One of Catalonia’s largest businesses is Seat. The Volkswagen Group brand has its headquarters and main factory in the town of Martorell, employing some 11,500 people, as well as other facilities in the Free Port in Barcelona. Seat achieved the best financial results in its history last year, with a turnover of €8.6bn (£7.7bn).
Martorell is the highest-volume production plant in Spain, producing around 2100 cars per day, with nearly 450,000 produced last year. These include Seat’s Ibiza, Leon andArona and the Audi Q3. The next-generation Audi A1 is scheduled to be built there from 2018.
Three trains per day filled with cars go from the factory to the port to be shipped abroad, destined for both within and outside of the EU. Seat exports 83% of the cars it makes, representing just shy of 3% of Spain’s total industrial exports, reaching more than 80 countries.
The method is saved slick by means of the blessings that EU membership presents Spain. The right of unfastened transit ensures that if a product is manufactured in the EU, it is able to be transported unrestrictedly throughout the bloc. It also guarantees that the VW Group splitting its manufacturing centers remains financially feasible because of a loss of import, export and customs price lists.
However, if Catalonia does proceed with its bid for sovereignty, EU officials have warned that it would no longer be a member state and would be cut off from the eurozone. Other EU member states have also voiced their disapproval, with the French government making clear that it would not recognise an independent Catalonia.
The head of the Bank of Spain, Luis María Linde, recently stated: "The exit from the euro is automatic; the exit from the European Union is implied.”
So, let’s say Catalonia makes a break for it and properly claims independence. Whether or not Spain’s central government decides to step in militarily, there would be serious repercussions for the region economically. CaixaBank and Banco Sabadell, among other large companies, have already announced that they will be moving their headquarters.
A Seat spokesman lately advised Autocar from Martorell: ?For now, it?S too early to make any evaluation as the situation is evolving each hour. We are carefully monitoring how the situation is gambling out.?
Seat?S largest markets are its home state of Spain, France, Germany and the UK, all of which are EU member states (for now).
The great case situation for ?The Barcelona brand? Could be for Puigdemont to backtrack. The worst case situation is a prolonged divorce that is far messier than Brexit may want to ever be, stalling Seat manufacturing due to the excessive charges ? Or even transient impossibility ? Of uploading uncooked materials and exporting automobiles to the EU.
And it wouldn’t just be Seat affected; Seat’s Gearbox del Prat facility in Barcelona also makes gearboxes for Audi, Skoda and VW, and of course there's the massive contribution that Seat makes to the VW Group's overall health.
The hope is that a solution can be determined that satisfies the democratic behest of the Catalan human beings without negatively affecting a colourful car enterprise that is experiencing a golden era in its records.
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