The Spanish auto sector is on the verge of a living nightmare. Sales have dropped 50% this year alone and a further slump in sales is expected in 2009.
Spain first saw a huge “rescue plan” for the real estate sector, then for the banking system and now its the auto sector’s turn. The Spanish government unveils a plan for January that aims at reducing unemployment, increasing financing, improving competivity, and avoiding large auto makers from leaving the country.
The future definitely doesn’t look bright for the auto sector, GM production (in their factory in Zaragoza) fell by 73%. The Ford factory (in Valencia) saw a reduction of 50,5%. Suppliers to the auto industry are also feeling the crunch, tyre producer Michelin announces “urgent measures” and is meeting with Zapatero today to prepare for a plan to treat the current situation.