Amid risk of stalling in EV race, Spain's rebooted aid scheme gets warm reception
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Loading... - Raul Sanchez
- 11 Apr 2023
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Spain only allocated 27% of its 2.9 billion euros in 2022
New scheme is more flexible
Spain is Europe's second-largest car producing nation
Programme led to tension between VW and the government
Volkswagen and Renault plan to request funds from a revamped Spanish government scheme aimed at encouraging electric vehicle (EV) production in the country, while Stellantis and newcomer AEHRA may do so, the carmakers told Reuters. Madrid will launch a new, more flexible version of the PERTE scheme around July, worth 2 billion euros ($2.2 billion) after last year's initial funding round flopped, with only 27% of an earmarked 2.9 billion euros allocated.
It hopes the programme, which draws on European Union pandemic support funds, will help Spain - Europe's second-largest car producer - stay in the EV race after losing out on investment to rivals in the region and further afield. With subsidies offered by the United States under the Inflation Reduction Act adding to competition from lower-cost countries in the EU's east, expanding EV capacity is seen as vital for Spain's industrial future.
"Spain tried the best it could with the first (PERTE) but we need to make sure that the second one is a lot better and more flexible," said Wayne Griffiths, chief executive of Volkswagen's (VOWG_p.DE) Spanish unit SEAT and chairman of the ANFAC Spanish vehicle manufacturing association. "We need to speed up. We can't afford to lose any more time."
VW will submit a new PERTE request, which could imply manufacturing additional EVs or assembling batteries in Spain, projects not covered by the funds it received last year. Read More…
