100,000 jobs could be lost in Spanish automotive industry

100,000 jobs could be lost in Spanish automotive industry due to registration tax hike

General Director of Seat, Mikel Palomera, warned on Tuesday, November 24, that thousands of jobs could be lost when the new registration tax comes into effect across Spain in January. In the New Year, 50% of cars on sale will have to pay the registration tax, which will make them 4.75% more expensive, thereby reducing demand, Palomera said.

Speaking at the VI professional conference Deia Automobile sector Bilbao Bizkaia, the CEO of Fiat Chrysler, Alberto de Aza explained that a tax increase, derived from the application of the WLTP, would be “a very strong blow”, which will translate into “a fall in demand” and will have “without any doubt, an impact in employment and, ultimately, in the economy”.

The WLTP procedure ( World Harmonized Light-duty Vehicle Test Procedure ) is a global standard for determining the levels of pollutants, CO2 emissions and fuel consumption of traditional cars, hybrids, and pure electric cars.

On Monday, Minister Maroto spoke of “offsetting the rise” but did not commit to the solution of raising the thresholds proposed by the sector by 20%.

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