Goodbye to the traditional registration tax, the new Renove Plan … the ‘anti-crisis’ measures requested by dealers

The official dealer network lost 8,075 jobs last year, approximately 5% of the total, remaining in 153,425 workers. A complex situation that could worsen in 2021 if the Government does not take measures, according to Faconauto.

In fact, the Spanish concessionaire employers do not foresee the end of the crisis until the year 2022, when they foresee it will return to pre-COVID sales levels. The goal is to reach the 1.2 million vehicles registered, a figure similar to that of 2019.

With respect to 2021, the development of the sector will depend on “the rspeed with which vaccination occurs of the population and the normalization of its mobility “, affirms in its writing Faconauto, where it also includes a series of measures that it asks the Executive to cushion falling sales and curb layoffs at dealerships.

According to the V-CON survey, prepared by the MSI consultancy for the employers, 64% of the dealers expect today reduce your templates in 2021.

The measures that dealers are asking for to revive the automotive sector

Dealer 2

“To tackle short-term and long-term challenges, it is necessary for the Government to activate the 3,750 million euros that it committed linked to the Plan to Promote the Value Chain of the Automotive Industry “, said Gerardo Pérez, President of Faconauto. And what measures are proposed?

  • New Plan Renove. Of the five strategic axes included in the rescue plan, Faconauto considers it urgent to address the first, the renovation of the park, through the reactivation of the 200 million euros left over from the Renove Plan to launch a Renove 2021 that could also be accompanied by a scrapping plan without purchase.

A measure that, however, is not shared by manufacturers such as Volkswagen, which recently assured that “it is not the solution” to end the “hemorrhage” that the market suffers before the failure experienced by the last Plan Renove.

  • Goodbye to the traditional registration tax. Faconauto proposes the creation of a new environmental tax that is regional and state in nature and “that will tax the park according to its CO₂ emissions with an annual fee”.

That is, dealers advocate eliminate direct purchase tax, such as registration, and link them to the use and volume of vehicle emissions in order to encourage the scrapping of the oldest and most polluting.

  • Eliminate the road tax on electric cars. The employer proposes the maintenance of the road tax, but giving 100% discount on the vehicles with the ZERO label of the DGT and working for a later future in a change of this tax so that the air pollution of the vehicles is taxed based on their age .
  • Legal security and regulatory reforms in the sector. Faconauto warns that this point is vital because “the possibility of concessionaires continuing to invest to promote a profound transformation of the sector and enable the ecological and digital transition is being hampered.”
  • 500 million European euros in three years. The employer’s association intends to mobilize almost 500 million euros of European recovery funds (Next Generation EU) to create “an innovative concept of the concessionaire of the future that positions it as a key player in the electrification of the park and as a provider of new solutions mobility “.

Dealers in numbers

Car Dealership

All these proposals come together with the annual balance of the dealers in 2020, a year that closed with a turnover of 35,895 million euros, compared to 44,207 the previous year, which represents a fall of 19%.

By business area, the one that suffered the most was new vehicle, with a 19.8% drop in turnover, followed by after-sales (-18.8%), while the used vehicle business fell 14.7%.

With these figures, the average profitability of official dealer networks was 1,2% about your billing.

Some discouraging figures that they will need to weather in 2021. “The first half of this year will be very complicated, and our viability depends on reactivating demand and consumption,” concludes Faconauto.

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