The Jaén Factory of Santana to Resume Vehicle Production with Chinese Partnership

Since 2011, the Santana automobile factory in Linares (Jaén) has remained closed. In its nearly 70-year history, it has produced Land Rover models under license, Suzuki and Iveco vehicles, and even military vehicles for the Spanish Army. Its history has been marked by management issues, and with the progressive loss of its industrial fabric, the region had sunk into economic depression.

Rumours of the resurrection of the Linares plant have been circulating since last September, when the President of the Junta de Andalucía, Juanma Moreno, and the Mayor of Linares, Auxi del Olmo, met with . Eight months later, shortly after the Shanghai Auto Show, it was confirmed that Santana Motors would return to the factory it founded in 1956, in partnership with Zhengzhou (ZZ) Nissan and Anhui Coronet, to build SUVs "that reflect Santana's tradition of quality and robustness," according to their statement.

The brand, traditionally linked to 4x4 models, has not yet confirmed what it will produce first, but the preview image suggests it will be a pick-up. This will also feature diesel and plug-in hybrid engines.

The Ministry of Economy, Finance and European Funds of the Junta de Andalucía states that the Santana project is part of the REaction Plan for Linares announced in January 2021. The regional government offers, through its Trade agency, 244 million euros in funds for industrial development, as well as fiscal, location, and implementation support. "It should be noted that Trade not only offers its incentives but also assists projects in seeking funding from other public sources, whether national or European."

The Santana Transport Science and Technology Park, as the Linares project is officially called, is expected to begin operations in 2026 with an initial investment of 10 million euros solely in equipment. In terms of employment, they expect to reach 170 jobs – 72 in the first phase – and achieve a production capacity of 20,000 units over the next three years. In addition to Santana Motors, other component companies, such as Desay SV, which will employ 300 people to manufacture vehicle multimedia systems, will be located in the Jaén industrial park. Thus, the Junta states that its priority is the "industrial reactivation in a territory that was once the automotive epicentre of Andalusia."

The Mayor of Linares, Auxi del Olmo, celebrated that "all the work we have been doing to revitalise this park is yielding very good results. Our commitment is to generate business activity that stimulates the economy and boosts job creation."

Santana itself states that they are "proud to join forces with our partners, thus driving the automotive industry and economic development in Linares."

Founded in 1956 as the agricultural machinery company Metalúrgica de Santa Ana, Santana began manufacturing Land Rover off-road vehicles under a British license in 1961 and also produced gearboxes for the Citroën factory in Vigo.

The Japanese company Suzuki entered the Linares company in 1985 with the intention of boosting it, purchasing up to 84% of the capital in 1993 and modernising the central factory and auxiliary companies, where models such as the Samurai, Vitara, and Jimny were manufactured.

However, the company's lack of productivity, with high absenteeism during the olive harvest season and where it cost more to manufacture a vehicle than at Suzuki's plants in Canada, as reported by Japanese executives, led the Japanese automotive multinational to file for bankruptcy in 1994.

The Junta de Andalucía assumed ownership and management of the factory, after injecting 99 million euros, to which were added another 48 million euros disbursed by the central government.

From then on, the financial drain caused by Santana Motor on public coffers continued to grow: in 2001, another 240 million euros were provided to finance 600 early retirements, followed by 42 million more provided by the Andalusian Development Institute (IFA) for a strategic plan, as well as successive capital increases and injections of incentives and subsidies, some of which were questioned by the EU Competition services.