Spain approves 3.75 billion euros bailout for automotive industry

The Spanish government has announced an aid package worth EUR 3.75 billion for the automotive industry, which is suffering badly from the corona crisis.

Seat plant in Martorell, Spain – (photo by Seat)

In particular, the aid package should focus on the promotion of electric cars, said Prime Minister Pedro Sánchez.

Details of the measures should be presented on Monday. The automotive industry is one of the most important economic sectors in Spain. It contributes around ten percent to gross domestic product (GDP) and secures around two million jobs.

Sánchez described the situation of the automotive industry as “critical” due to the extensive cessation of production and a sharp drop in sales during the corona crisis.

The VW Group brand Seat suffered a drop in deliveries of 65 percent in May. Sánchez emphasized that the aim of state aid is to support the automotive industry in the transition to “sustainable mobility”.

Author: Nabeel K

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