( CNN ) -- In Spain , out of economic pain and adversity , opportunity is emerging . The country is in a deep recession and unemployment sits at a painful 26 % . But there are signs of a comeback -- in the auto industry , at least . Ford , Renault and Volkswagen have all decided to expand production in Spain because of cheaper labor costs . Japanese automaker Nissan is also expanding , but it 's also doing something else quite radical : it 's hiring . Read more : Cornish pasties filling hunger for jobs . This month , Nissan Barcelona received $ 178 million dollars in investment to produce 80,000 cars . The deal will help create 1,000 direct and 3,000 indirect jobs . This agreement would not have been possible had it not been for Nissan 's negotiation of new working practices with Spanish trade unions . Read more : Diageo : Europe must be more competitive . Nissan struck an agreement with the unions , limiting wage increases and giving the company more flexibility with its temporary workforce . The difference , believe it or not , is quite substantial . According to the OECD , Spain 's labor costs have dropped almost 5 % percent from 2009 to 2012 . In that same period , France -- where labor costs are a contentious issue -- has seen its costs increase by 4.3 % . Germany 's , comparatively , have increased 1.9 % . Even Italy , where costs have risen 2.7 % , and the UK , up 2.2 % , have n't adapted to the tough economic times . Read more : Could emerging markets be Lindt 's new sweet spot ? Frank Torres , director general of Nissan Motor Iberica , told CNN lowering labor costs were an achievement for Nissan Barcelona and for Spain itself -- making it an increasingly competitive location for manufacturing and exporting cars . But labor market reforms are not enough to make Nissan Barcelona competitive on the global stage . Torres said the company needed to make logistical savings to stand out from other automakers and Nissan manufacturing hubs , it needed to make savings on the ground . That 's exactly what it did . It now has twenty key suppliers under their roof and a port less than five minutes away from their doorstep . It 's this logistical innovation that has enabled Nissan Barcelona to cut costs by as much as 30 % ; and for an industry that accounts for 10 % of Spain 's industry , this is a crucial part of Spain 's long haul to recovery .
Ford , Renault and Volkswagen expanding production in Spain because of cheaper labor costs . This month , Nissan Barcelona received $ 178 million in investment to produce 80,000 cars . According to the OECD , Spain 's labor costs have dropped almost 5 % percent from 2009 to 2012 .