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Spain’s unlikely boost to European vehicle production

Ian Henry examines the growth of vehicle production in Spain

The collapse of the Spanish economy and rising unemployment, especially amongst the young, have been widely reported as the some of the most symbolic examples of the economic turmoil which has engulfed much of Europe. Falling car sales have been one of the most obvious indicators of the country’s economic problems and in response, the government has sought to boost car sales with a serious of interventions - notably the five rounds of the PIVE (Programa de Incentivos al Vehículo Eficiente) scheme - effectively subsidising new car sales.

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