Autos Sector Gets Austerity Reprieve

Although the Spanish government is attempting to cure its mounting budgetary deficit through a hefty EUR15bn austerity plan (announced on May 12), it has adopted a different, rather unlikely, stance towards the auto industry. The Asociación (Nacional) de Fabricantes de Automóviles y Camiones (Anfac) reported in May that the government has earmarked an additional EUR370mn (US$458mn) towards the vehicle scrappage scheme -- known as Plan 2000E -- in an attempt to keep it running until the end of this year. If all goes according to plan, the government will yield a net income of nearly EUR800mn (US$991mn) as a result of the scheme between 2009 and 2010.

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