"It will take time to equalize the cost of combustion engine cars with that of electric cars."

MadridFour years ago, 52 automotive companies—60% of them SMEs—in Spain joined forces under the Fast Forward (F3) umbrella. Spain and Catalonia were determined to work together to further promote electric vehicles and everything related to them. This meant not only securing their place among the population—so that they would replace combustion engine cars—but also boosting their production: from components to complete manufacturing. Europe was also investing heavily, making electric cars a key priority for European anti-pandemic funds linked to the Recovery Plan. In fact, the group's genesis lies in the ability to develop sufficiently mature projects that covered the entire value chain to secure maximum funding from this European windfall. In Spain's case, this funding has been channeled through a specific strategic project, known as PERTE.

The goal was – and is – "to transform current mobility towards electric mobility," in the words of Marc Riera, president of the group and, at the same time, vice president of purchasing for Seat and Cupra. Four years later, he celebrates his results: the F3 association has completed 60% of the 86 projects it proposed four years ago to turn the State into the hub of electromobility in Europe, as announced at a forum in Madrid this February.

"The assessment is very positive because everyone is committed," Riera says in a telephone conversation with ARA. He acknowledges that these past four years have been mostly about "paperwork," especially to meet all the requirements, but that now they have "begun the industrialization phase." "Have we achieved all the objectives? No. But it's already a reality," Riera states. In fact, the group has extended its completion date, originally planned for 2026, to 2027. "I'm convinced that we will achieve it and that we will lay the foundations for the future of electric vehicles [in Spain]," Riera says about Fast Forward. ~BK_S

"Like everything else in life, transforming an industry as important as the automotive industry isn't easy, and we need the maximum help and support from everyone who has something to say," reflects the president of F3. In fact, the February meeting coincided with the announcement of a new aid program from the Spanish government, the Auto+ Program, linked to the Spain Auto 2030 Plan, with direct subsidies for the purchase of an "electric and electrified, economical, and European vehicle." In the case of personal vehicles, the maximum subsidy can be up to 4,500 euros.

The fact is that lifelines like this have become a permanent demand from the sector. Riera considers it a "welcome" boost, but one that must be "continuous and not one-off." Does this mean that the industry will always depend on these subsidies? The executive is convinced that this is a "transitional" phase.

"We won't always need this aid for customers, but the transformation to electric cars is a leap, and it will take years to equalize the production cost [of the electric vehicle] with that of the combustion engine car and, therefore, the price [...] When the market volume is sufficient, the technology has advanced, and production costs are optimized, such as for batteries, we are convinced that the price of electric and combustion engine vehicles will be equal."

Same rules of the game

Likewise, for the sector, the issue is not only about helping buyers—that is, the general public—to access these types of vehicles, but also about supporting the industry itself so it can develop its projects. And here, a policy that Europe, and consequently Spain and Catalonia, should embrace, in the opinion of the automotive sector, is to incentivize "European products."

"The entry of Chinese manufacturers is a reality, not a risk," says Riera. The sector maintains that it is not afraid of competition, but "the playing field must be level." "This calls for supporting certain protectionist policies and, why not, offering advantages to the customer if the car or its components have been produced in Europe," says the president of the association.

In addition, the public face of this group believes that "stability" is paramount regarding the messages and actions of the various administrations, starting with the European Commission. The changes proposed by the EU executive regarding the phase-out of combustion engine cars are not good. "They complicate things," says Riera. He also emphasizes the need for all stakeholders to "move at the same pace," referring to the implementation of charging points in Spain and, therefore, the capacity of the Spanish electricity grid to handle this new demand. One of the things F3 is proud of is that they have "involved small and medium-sized enterprises," the executive points out. Currently, the group estimates that €10 billion has been mobilized through the projects developed so far. A significant portion of this money (€7 billion) comes from the Volkswagen Group, Seat, Cupra, and PowerCo. The remaining €3 billion comes from the other partners. One of the major programs is the manufacturing of the Volkswagen Group's new 100% electric urban vehicles, developed and produced in various factories across the state.