MADRID (AP) -- Spain and car manufacturer Renault signed a deal Tuesday under which the French company will make two new cars and an engine at its Valladolid plant, a welcome boost to the country's crisis-hit automobile sector.
Renault director in Spain Jean-Pierre Laurent said the company would begin making a small electrical car in 2011, an ecological engine the following year and a traditional-style car in 2012.
The agreement was announced at the plant by Laurent, Spanish Prime Minister Jose Luis Rodriguez Zapatero and Industry Minister Miguel Sebastian.
Sebastian said the accord involved some euro500 million ($735 million) in investment and will guarantee work for the factory for up to 10 years. The electrical car will be the first to be made in Spain.
Spain is Europe's third largest auto manufacturer, but the economic crisis has seen sales slump dramatically.
Renault employs some 9,400 workers in Spain.
