Spain plans to shore up car industry - 50,000 jobs threatened

Spain MapMadrid - Spanish Prime Minister Jose Luis Rodriguez Zapatero on Tuesday announced measures to shore up the country's car industry, the slowdown of which is endangering an estimated 50,000 jobs.

The government is preparing a 2009-2010 plan to revive an economy hit by the global crisis. The plan includes measures to help the "important" car industry, Zapatero said.

"We will make efforts up to where we can legally," said Zapatero. But Spain could not act "outside the lines marked by the European Union," and would wait until the European Commission presented its plans for the car industry on Wednesday, the premier said.

Industry Minister Miguel Sebastian meanwhile met with regional authorities to discuss an "integral plan" for the car sector.

The ongoing decline in car production could kill 18,000 jobs in car factories, a quarter of all Spanish car factory jobs, the daily El Pais reported.

The problems of the car industry were also expected to affect the car sales and spare parts sectors. Altogether, more than 50,000 car industry jobs are threatened.

Spain produced about 200,000 cars in October, a quarter less than in October 2007, the car makers' association Anfac said.

Production was expected to drop by 10 per cent or about 300,000 cars during the entire year.

The car industry contributes 8.4 per cent of Spain's gross domestic product and 26 per cent of exports. (dpa)

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