Saving the automotive industry in Portugal

Consultants specialising in the automotive segment say the crisis in the car industry in Portugal is a reflection of its economic situation. Car sales dropped 40.9% last year.

MBM Mobile consultancy firm believes that a revival of the sector may be possible if there is “dialogue between private agents and the government” in order to implement measures to save car dealers from bankruptcy.

“Revenue from ISV (tax on new vehicles) has dropped drastically,” said João Corga from MBM Mobile, adding that the car industry’s economic model in Portugal is outdated.

In 2012, around 2,500 companies in the car sector closed down and 21,000 jobs were lost as a result of slumping sales, confirmed the Portuguese Automotive Association (ACAP).