Spain underpins car sector bailout with green goals

(EurActiv, 15 Jun 2020) The Spanish government unveiled on Monday (15 June) a €3.75 billion aid package for the domestic auto industry, which includes a scrappage scheme with green strings, a bigger focus on electric charging points and funding for hydrogen power.

Coronavirus is expected to knock 15% off of Spain’s GDP by the end of the year, according to its national bank, so the government has moved quickly to prop up the sector with a bailout plan that also seeks to make vehicles cleaner in the process.

Although lacking home-grown firms – Seat was sold to Volkswagen in the late 1980s – Spain’s car industry makes up 10% of GDP and 19% of the country’s exports, supporting up to two million people in direct and indirect jobs. In Europe, only Germany produces more vehicles.

The virus outbreak’s impact on the global economy has already started to reveal itself. Last month, Japanese marque Nissan announced it would close a plant near Barcelona, costing the local area 3,000 jobs.

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EurActiv, 15 Jun 2020: Spain underpins car sector bailout with green goals