Mercedes to invest 1.2 billion euros in Spain after deal with unions

Mercedes-Benz prepares to invest 1.2 billion euros in its Vitoria plant located in north-western Spain after workers backed a new labor agreement, unions UGT and CCOO said on Tuesday.

About 57% of the plant’s 5,000 workers voted in support of a deal that defines working conditions and pay raises until 2026, enabling Mercedes to invest in the production of new models and electric vehicles, the unions said.

Mercedes-Benz has not commented on this yet.

The company has said it expects to assemble 158,000 vehicles in Vitoria plant, its second largest van assembly plant, in 2022 and prepares to boost output in the coming years.

Founded in 1954, there are more than 5,000 employees working in Vitoria plant.