The government wants Portugal to be on the map of manufacturers who want to establish car factories in Europe. The Minister for Economic Affairs has ensured that conditions are being created and there are contacts with potential stakeholders.
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04/11/2026
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Portugal it wants to be on the road of car manufacturers and the government is creating conditions and maintaining contacts with potential stakeholders in creating a possible factory on national territory.
A Volkswagen AutoEurope in Palmela is an important hub for the economy of Portugal, being the largest automobile factory in the country – which also has Stellantis in Mangualde, for example.
With more than 98 percent of the vehicles produced here being exported abroad is an activity sector that makes a positive contribution to the portuguese trade balance.
While Europeans go through an adverse period and there are cases such as Volkswagen where the closing of factories is considered, the case is different with the Chinese builders. Some study establishing or expanding their production in Europe, in the context of heavy tariffs imposed on electric cars from China.
Portugal wants to be on the map and is creating conditions
In the podcast Conversa Capital, by RTP Antena 1/Jornal de Negócios, the Minister of Economics, Manuel Castro Almeida, was asked whether Portugal can be a hypothesis for the establishment of automobile production of manufacturers such as the Chinese. He replied: “Portugal wants to be on that map, is working towards this“.
Second the ruler there are contacts. However, he stressed: “I i wish I could announce a new car factory in Portugal, but I can't. What I can say is that that would be very welcome and that we are creating envisaging conditions for this to happen one day“.
Castro Almeida also confirmed the existence of “potential investors who have had fruitful dialogue with the Portuguese Public Administration”.
Geely and Ford formed a production joint venture in Spain, where Leapmotor cars will also be manufactured in partnership with Stellantis. It is speculated that BYD may also be considering establishing a new unit there, and a year ago Portugal was also mentioned as a hypothesis. The head of the Ministry of Economic Affairs in the Government of AD believes that no manufacturer was lost to the neighboring country.