MADRID, Oct. 25 (Xinhua) -- Spain's cabinet meeting extended on Friday the Plan PIVE 3, which helps boost the automobile sector in Spain, local media reported on Friday.
The so-called Plan PIVE 4 will consist of 70 million euros (96.62 million U.S. dollars) of aid. The first Plan PIVE gave 75 million euros, the second 150 million euros and the third one 70 million euros.
Spain collected around 1 billion euros via taxes thanks to the Plan.
The Plan PIVE gives prospective buyers who own a car of 10 years or older 2,000 euros (1,000 the government, 1,000 the car dealership) to buy a more efficient and ecologic car. Now, the Plan will also give people with reduced mobility and large families 3,000 euros to buy vehicles adapted to their needs.
At the press conference following the cabinet meeting, Deputy Prime Minister Soraya Saenz de Santamaria said the Plan PIVE was a success as it helped create and preserve jobs, while assuring that people supported the plan because it had run out of money before expected.
The government expects the 70 million euros of the Plan PIVE 4 to last until the end of 2013.
Meanwhile, the Plan PIMA Aire was also extended to aid sales of motorcycles, moped, electric bicycles and vans. The Plan PIMA Aire gives prospective buyers who own a vehicle of 5 or 7 years old financial aid to buy an electric vehicle.
The Plan gives 600 euros to buy a motorcycle, 350 euros to buy a moped and 200 euros to buy an electric bicycle.
The automobile sector has been hit hard because of the economic crisis and the Plan PIVE has helped improve the situation of the sector. So far, around 220,000 car owners have benefited from the Plan PIVE.
The sector has always said that without the Plan PIVE they would not have sold as much as they did. They expect to build 2.2 million cars in 2013 and 2.4 million in 2014, when the economy is expected to continue growing after the slight GDP growth of the third quarter of 2013. (1 euro=1.38 U.S. dollars)