Auto sales in Spain dropped 2.6% year-on-year in May, according to automakers’ association Anfac.
The 2.6% drop comes after an increase of 11% in April, the first jump in months, mainly due to a calendar effect. Anfac said that last month 70,534 vehicles were sold, and the drop is believed to have been caused by waning sales to companies.
Last month sales to individuals were helped by a government subsidy scheme, therefore sales increased 14%, but could not offset the drop of 14% in fleet sales to companies.
In April GM’s workers in Spain accepted the company’s plan to freeze salaries for two years to increase competitiveness against other plants in Europe. GM’s plant near Zaragoza has 6,000 workers who accepted the company’s five-year collective agreement, which means employees won’t get a salary increase this year or in 2014. The automaker said that this strategy would help the facility be “part of the company’s investment plans and allotment of new models.”
Due to decreased labor costs and the Prime Minister Mariano Rajoy’s new legislation which makes it easier for companies to reorganize staff and cut wages, automakers such as Ford, Renault and PSA Peugeot Citroen are increasing production in Spain.