Car sales in Spain plummeted by 28 percent last year, the worst slump on record, manufacturers said Monday. Automobile trade association ANFAC said 1.16 million vehicles were sold in 2008, down from 1.61 million the previous year.
Looking at monthly figures, the association also said sales flopped by 49.9 percent to 72,377 in December, compared to 144,441 sold in the same month of 2007.
Spain, one of Europe’s best-performing economies over the last decade, is in a sharp downturn because of the international financial crisis, which has exacerbated a collapse in its key construction industry. Automakers such as Ford, General Motors and Volkswagen have all announced job and production cuts in Spain in recent months. Not even the car hire industry in Spain will be able to stop this. Due to the financial crisis many car hire companies in Spain will also suffer severe problems in renewing their fleet of rental cars. Car hire in Spain still is a cheap option against the use of public transport in many travel destinations like Alicante, Malaga or Palma de Mallorca where there is a large offer of cheap car hire.
Source: Associated Press