Spain’s PM Announces €3.75bn Rescue Plan to Boost Automotive Industry

Spain’s Prime Minister Pedro Sánchez has today announced a rescue plan for the “depressed” automotive industry, promising an injection of €3.75 billion.

THE investment will give the flailing industry a much-needed boost after two months of record lows as a result of the lockdown. Not only was the industry forced to close factories since mid-March, but a depressed demand for new cars resulted in historically low registrations in both April and May. So to encourage car purchases, Sánchez has promised aid for individuals to buy new cars, as well as financial incentives and breaks for companies. He promised help “for families with fewer resources, entrepreneurs and the self-employed to purchase new vehicles, especially electric ones”.

Sánchez also announced corporate tax breaks to encourage companies to renew car fleets and purchase more vehicles. In addition, he promised legal reforms, as well as funding for research and development, and vocational training, for the sector. Sánchez confirmed his commitment to “mitigate climate change” and said he aims to achieve the “zero emissions by 2050” target. Further details on the financial aid plan for the industry will be announced on Monday, he added.