Spanish government extends financial aid to automotive industry

The Spanish government extended on Thursday the plan that provides financial aid to the automotive industry, the Plan PIVE 8, which was passed at the cabinet meeting.

The Plan PIVE 8 has a budget of 225 million euros (255 U.S. dollars) for 2015 and consists of giving prospective buyers 1,500 euros, half from the state and half from the car dealer, to buy a new and more ecologic car in exchange for a 10-year old or older car.

The former Plan PIVE gave prospective buyers 2,000 euros, however the Plan PIVE 8 that was passed on Thursday has reduced this amount to 1,500 euros.

The amount assigned to those suffering from disabilities and reduced mobility or those being part of a large family remains unchanged at 3,000 euros.

The extension of the plan had already been announced in Barcelona last week by Spain's Prime Minister Mariano Rajoy on the occasion of the opening of the New International Motor Show.

According to Spain's Deputy Prime Minister Soraya Saenz de Santamaria, the main goal of the Plan PIVE is to renew Spain's fleet, which is one of the oldest in Europe, replacing the oldest vehicles with more efficient and ecologic ones. This will also help reduce fuel imports, she said.

Saenz de Santamaria highlighted that Plan PIVE helped boost demand in the sector, of which sales have been rising for 19 consecutive months.