Spain plans to support Automobile Sector with 3.7 billion Euros package

Spain plans to support Automobile Sector with 3.7 billion Euros package

Spanish government is planning to offer help to ailing automobile sector with Euros 3.7 billion package, as per statement issued by Prime Minister Pedro Sanchez. The statement issued on Sunday has not given any further details about the package. Sanchez added that the package will help improve sales for the sector and there will be special focus on electric vehicles. Among European countries, Spain and Italy were the worst impacted by COVID-19 pandemic.

German government also announced a major package for automobile and aviation sector. Automobile companies were even struggling before the COVID-19 pandemic. As thousands of jobs will be at risk across Europe, governments are offering helps to different sectors after consulting finance experts and management of major business groups. German government offered major help to Lufthansa Group but the management informed that there could be nearly 26,000 positions redundant as the airline deals with the decline in demand due to COVID-19 crisis.

Automobile sector accounts for 10 percent of GDP in Spain. The country is also dependent on automobile sector for 20 percent of its exports. Considering the importance of automobile sector, many economists and auto sector experts were waiting for an announcement from the government.

As automobile dealerships across Europe are opening for business, many dealers have started offering deep discounts to attract customers.

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