The Renault factory in Valladolid will launch Spain’s first series of electric cars in 2011.

According to a government announcement today, Renault will start to manufacture the electric car on a massive scale in 2011 and will also design a new model to substitute its Modus. Renault has also agreed to develop an environmental friendly engine in 2012 and both the Spanish President, José Luis Zapatero, and the Industry Minister, Miguel Sebastían expressed satisfaction today. According to Sebastián, Renault’s announcement means that jobs at the plant in Valladolid will be safe for at least another ten years.

Zapatero said the announcement was proof that Spain is competitive, has a qualified workforce and that the big brands have confidence in the country and that today was a day for Spaniards to show self confidence.

The Spanish government has been active throughout negotiations with Renault and Sebastian announced that the plan presented today would cost 500 million euros over the next 4 years.

The majority of this investment will come from public money with 70 million going towards the manufacture of the new electric car and another 300 for the development of environmentally friendly parts for Renault models.

The Chairman of Renault Spain declared that Spain has had to compete with countries with much lower production costs and he expressed his gratitude to the Spanish trade unions who have agreed to a freeze on wages in exchange for no job losses. Renault employs over 9,000 workers in Spain in its three factories in Valladolid, Palencia and Sevilla.