CAR SALES PLUMMET

Sales in new cars plummeted 25.5% in November, compared to the same period in the previous year, as the Government´s cash for scrap scheme comes to an end, marking a worrying time for the industry and those who currently work in one of the countries biggest employment sectors.

According to figures from manufacturers' association ANFAC (Asociación Española de Fabricantes de Automóviles y Camiones) , November 2010 saw a total of 64,515 vehicles sold, which was the fifth month in a row that sales had dropped.

While total sales in the first 11 months of the year are up 5.9 percent to 913,073 units, this is due to strong sales during the beginning of the year before the government halted the subsidy scheme in June, after the budget set aside for the scheme ran dry.

ANFAC expects sales to total 950,000 units in 2010, which is comparable to the early 1990s, and considerably lower than their target sales of between 1.3 and 1.4 million units per annum.

The car manufacturing sector in Spain is the third-biggest in Europe and ranks eighth worldwide. The Spanish car manufacturer Seat, although owned by German company Volkswagen, built 2.2 million vehicles last year.