Spain Auto Industry

By: EconomyWatch   Date: 30 June 2010

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Latest news on Spain auto industry
According to reports of Anfac, a major car manufacturers association of Spain, in 2009 production of cars in Spain auto industry would be reduced by 25 percentage. This implies that levels of production in auto industry of Spain would come down to that of 1994. Spain automobile industry is in bad shape as of now as it has been hit hard by credit crunch. In 2008 sales of new cars in automobile industry of Spain had gone down by 28 percent. It has been hardest hit among five major car making companies of Europe. In 2008 only 1.16 million cars were sold in Spain.

Efforts to revive auto industry in Spain
Miguel Sebastian Gascon, industry minister of Spain, has suggested certain measures to revive Spain auto industry. He has said that it would be good for automobile companies of Spain to introduce bonuses for car owners for selling off their older cars. This, Gascon believes, would give rise to demand for new cars and that in turn could revive automobile industry of Spain.

Central government has put aside an amount of 800 million Euros for Spain auto industry. This amount is a part of an economic stimulus package worth 11 billion Euros. Ministers in Spain are in talks with their American counterparts. They are discussing about methods, which may be used to revive automobile industries of both Spain and United States of America.

Spain auto industry has put forward requests for financial aid worth 10 billion Euros as 68 thousand employees are about to lose their jobs. Almost 9 percent of aggregate population of Spain is employed, directly or indirectly, by Spain auto industry and 5 percent of Spain's total income comes from this industry.

Spanish national government is making every possible effort to help its ailing automobile industry. It is drawing up various plans to improve present scenario but has stated that it would have to operate within regulations that have been fixed by European Union regarding these matters. It is expected that, as a result of worldwide financial recession, 18 thousand people would be sacked at various automobile manufacturing factories of Spain. This is 25 percent of aggregate workforce in Spain auto industry. Loss of jobs in Spain auto industry could act as an impediment to automobile spare parts industry of Spain as well.


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