Spain auto sector transition plan

The Spanish government in June 2020 announced a EUR 3.75 billion package to aid the ailing auto sector and to support the production and sale of cleaner cars under the Plan to Boost the Value Chain of the Automotive Industry towards Sustainable and Connected Mobility. In addition to payments to consumers for giving up old cars and buying new, lower-emissions vehicles, the package also offers EUR 2.6 billion in low-interest loans and loan guarantees to car companies to modernise factories and upgrade fleets. As part of the package, the government also directed EUR 95 million to worker training programmes to adapt the existing workforce to new labour demands. The Spanish auto sector is estimated to account for around 10% of GDP and support 650 000 direct jobs and up to 2 million indirect jobs. As such, the government will implement a plan to retrain and update the qualifications of auto sector workers. In addition, the government will enact a campaign on accreditation of professional skills acquired through auto sector employment; a training plan for new technologies, digitisation and sustainable transport; and comprehensive training plans for management skills, digitalisation and innovation platforms in the auto sector. Following up on the introduction of the plan, in July 2021, the government announced approval of the Strategic Project for the Recovery and Economic Transformation (PERTE) of Electric and Connected Vehicles, which will mobilise EUR 24 billion of investment, including EUR 3.4 billion of public investment. 

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