Spain’s automotive supplier association (Sernauto) says it is “hungry” for a new government to be formed in Madrid as long-running political horse-trading raises the prospect of a further general election later this year.
The country’s politicians have long viewed Spain’s auto sector as a crucial cog in its economic plans and although some way behind the all-powerful tourism sector, it nonetheless contributes a significant 10% of the country’s GDP.
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Sernauto (Asociación Española de Proveedores de Automoción) has more than 1,000 members, but is looking for a political framework in which its voice can be heard both effectively at home and abroad, reserving praise for acting Spanish Industry Minister, Reyes Maroto.
“We are really hungry for a government – they are still negotiating,” Sernauto CEO, José Portilla told just-auto from the association’s headquarters in Madrid. “We still do not know whether we will have a government next week [and] we don’t discard new elections in November.
“Two years ago, we were almost one year without a government though the economic outcomes were going well. I have to say concerning Mrs Maroto, she has quite a good understanding of the sector and is showing a big compromise with the sector, both with OEMs as well as with component manufacturers.
“We do not have a government at this stage – we are wait [ing for] an extended budget. This means we are not able to tackle or have access to specific members of pockets of money, so we are really looking to have a government as soon as possible and have a normal budget.
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By GlobalData“The Minister has said there will be specific amounts for fostering competitiveness [and] to scrap [old] cars for transition [and] especially when we are facing the highest regulations in history for the sector. We are not asking for subsidies, we are asking for along term country strategy, like there is in France or Germany to tackle difficult aspects like the fostering of R&D.”
Other sectors where Madrid can potentially play a role notes the Sernauto chief, are energy alignment with the rest of Europe, the shift to new mobility and training to cope with the new skills needed. Spain’s historical regional rivalries, not just in the powerhouses of Madrid and Barcelona, but in the devolved territories also require a more federal approach when it comes to the sector.
“We are really hoping the government is in place as soon as possible,” added Portilla. “We want to style a national automotive agreement where Sernauto, Anfac [Spanish automotive association], the distribution [sector] and high members of the government would be working in specific working groups.”
A snapshot of the power exerted by Spain’s automotive sector can be gleaned by turnover last year rising 2.6% to EUR37.17bn (US$42bn) due in part to sustained export efforts.
Nonetheless, Sernauto, estimates 2019 will be a tougher year, with growth slowing as trade tensions filter through to the sector.
The European Union continues to be the main destination market for Spanish exports of components, with a market share of 72.5% of sales in 2018. Sales increased 1.05% compared to last year, standing at EUR5.3bn.
A longer intervew with Sernauto CEO, José Portilla is now available with a further part to come.
