Severe weather in Morocco disrupted production at Volkswagen’s Autoeuropa plant in Palmela, Portugal, in January, leading to a 13% decrease in output, according to reports. The disruption stemmed from the closure of the port of Tangier in Morocco for two days due to storms, halting the flow of essential components.
The components, vital for the production of the Volkswagen T-Roc’s seats, are manufactured in Morocco and transported via ferry across the Strait of Gibraltar to Algeciras, Spain, before completing a 600-kilometer journey by road to Palmela. “They are arriving now,” a source at Autoeuropa told Jornal Económico, indicating the factory is now working to restore production levels.
The production slowdown at Autoeuropa contributed to a 7.8% decline in overall vehicle production in Portugal during January, totaling 21,746 units, data from the Associação Automóvel de Portugal (ACAP) revealed. However, Stellantis’s Mangualde plant experienced a 2.5% increase in production, reaching 7,498 vehicles, partially offsetting the decline.
The impact extended beyond passenger vehicles. ACAP data showed a significant drop in heavy vehicle production, falling by 52% to 190 units, while light commercial vehicle production increased by 5% to over 5,900 units. The European market remains the primary destination for Portuguese vehicle exports, accounting for 88% of the total.
Despite the January setback, Autoeuropa had a strong 2025, achieving its second-highest annual production figure with 240,400 vehicles, a 2% increase compared to the previous year. This figure remains below the record set in 2019, when 254,600 vehicles were produced in Palmela. Stellantis Mangualde also reported a record year, producing 91,662 units, a 7% increase over 2024.
Germany is the largest export market for Autoeuropa, receiving over 61,000 units (26% of the total) in 2025, followed by Italy (11%), France and Spain (7% each). For Stellantis Mangualde, France is the leading export destination (21%), followed by Spain (17%) and Italy (14%).
The disruption highlights the vulnerability of European automotive supply chains to weather events and logistical bottlenecks in North Africa. The Strait of Gibraltar, a critical maritime passage connecting the Mediterranean Sea and the Atlantic Ocean, is a key transit point for these components.
