Spain gives aid to car industry

Spain announces a 4.1 billion euro assistance plan to aid the car industry.

The Spanish socialist government said Friday that it would provide aid to the suffering car industry by allowing auto makers to put off paying their social security contributions in 2009 as part of measures to help the sector cope with crumblings sales.

The aid plan for the motor industry contemplates a 4.1 billion euro assistance plan. The plan includes support to develop the production of hybrid and electric vehicles as well as credit aid to help boost new car sales by providing low-interest rate loans to car consumers.

Over 300,000 people are employed in the car industry. Most manufacturers are foreign companies such as Ford and General Motors.

Car sales in Spain plummeted by 28 percent last year, the worst slump on record.  Predictions for this year estimate that car sales will continue to fall even further in light of tighter credit and rising unemployment in the country.

Image by gonzopowers under Creative Commons.