Spanish Auto Industry Exec Bullish on 2016 Recovery

MADRID – For Mario Armero, executive vice president of ANFAC, the main Spanish association of automakers, 2016 will be a year of recovery for the industry with an estimated 1.2 million vehicles sold, 10% over projected 2015 levels.

Armero, speaking during an economics workshop organized by the International University Menendez Pelayo and the Spanish Association of Economic Journalists, says factors in his optimistic forecast include falling oil prices, an increase in money available for auto financing after the latest fiscal reforms, and low interest rates set by the European Central Bank.

Car demand already has been improving steadily in Spain during the past 22 months and 1.2 million sales in 2016 would be close to the average 1.5 million deliveries from 1999 through 2007, he says.

Spain has the world’s 14^th-largest economy. As its eighth-largest auto assembler, politicians and industry leaders must set a goal of 20% of gross domestic product for the industry, Armero says, adding the country has an excellent opportunity to increase its international share of production from the current 3.4% to 4% by 2020.

But to reach that goal, Spain must address unfinished business such as logistics, he says.

“In Spain, politicians have always been worried for people mobility, but not for goods transport.”

Armero also calls for elimination of the “anachronistic” registration tax of about 21% on new-car purchases. The tax initially was introduced to compensate for the difference between the defunct 30% luxury tax and the lower value-added tax launched when Spain joined the European Economic Community.