This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Ganvam apuesta por pasar página a la crisis y potenciar la unión del sector en el marco del Comité de Diálogo

Review the taxation of the car or brake the illegal sale, between the challenges for 2014

Ganvam bets for making a fresh start to the crisis and improve the union of the sector in the frame of the Committee of Dialogue

Editorial Interempresas11/12/2013

The president of the National Association of Sellers of Vehicles to Engine (Ganvam), Juan Antonio Sánchez Torres, recognises that although the Committee of Dialogue does not cross his best moment, is necessary the union and the understanding of all his members to follow working in the positive diary of subjects, leaving to a side the differences that generate unnecessary clashes.

Sánchez Torres -that represents to 4.600 dealers/official services and 3.000 compraventas, among others collective- admitted that although they exist logical discrepancies between importing/manufacturers and his networks of distribution that hamper the so longed for ‘Letter to the Kings Magicians', always there is place for the claim reasoned from the understanding and on the base of common interests like the continuity of the plans of stimulus, the reform of the taxation of the car or the eradication of the sale and illegal repair of vehicles.

Juan Antonio Sánchez Torres, president of the National Association of Sellers of Vehicles to Engine (Ganvam), during the ‘Breakfast Engine and Presses'.

Of this form, the manager of Ganvam confirmed that the Committee of Dialogue, in which they participate the Ministries of Economy and Industry and the representative associations of the sector, will start the year with strength with a first meeting in January in which it will tackle , among others subjects, the need to continue with the plans of stimulus until the economic recovery move to the families and to the consumption.

Although for the sellers exist already “lights” in the macroeconomy that do to discern a prompt recovery, the true is that also there are “shadows” that draw a collective pessimism around some data more than alarming of unemployment (26%) and some high financial costs; what carried to the terrain of the automotive sector, translates in a market depressesed –with a forecast of 720.000 tourisms for 2013- and a park aged.

By this reason, for the association would be desirable to do beneficiarios also of these plans of incentives to the vehicles of occasion of until five years, retorting models like the extinct Plan Foresee or the most recent 2000And, in a moment in which the used has turned into the real solution of mobility of a lot of Spaniards, by his good relation guarantee/price. The sales of VO will sack this year with a rise of 6% and a total of 1.670.000 units.

Review of the taxation of the car

The reform of the taxation of the car is another of the priorities in which the sector works jointly with the Administration to achieve a taxation oriented to penalise the use of the car in place of the purchase, of agreement to the European criteria, what would go through to delete the anachronistic Tax of Registration of the that at present are exentos more than 50% of the vehicles.

This fiscal review contemplates also the reform of the Tax of Circulation and his adecuación to environingingmental criteria, as well as the elimination of the Tax of Transmissions Patrimoniales for dealers and compraventas. Besides, it pretends a discount of the taxation to the drivers with car of company and the desgravación in the income tax of the quotas of renting for individuals, what will favour the change of car each four years, braking the aging of the park and helping to fulfil with the aim of the DGT to recess to seven years or less his half antiquity for 2016.

The approval of a norm of state character to eradicate the pirate sale of vehicles in the public road is another of the historical claims of the sector. When forbidding on purpose this sale by part of pseudoprofesionales that pass off as individuals –speak of 10% of the sales in the private channel (some 160.000 annual units)- will finish with a black market that generates to the sector some losses of more than 300 million euros to the year.

Coto To the illegal workshops

But the travelling sale is not the only fraudulent practice by which the sector automotive sector has to aunar strengths of face to the new course. In fact, put coto to the illegal workshops –that represent at least 20% of the total repairs- will help to improve the accounts of results of the posventa and brake a disloyal competition that generates some losses of 1.000 millions to the year to the legally established sector.

Since it burst the crisis in 2007, the sales of trucks have retreated more than 55%, which supposes three millions less than new vehicles to repair that they are precisely those that greater income report to the workshops when being in guarantee and leave a greater half ticket. This explains that only in the last four years the repairs of vehicles have fallen in the order of 20% whereas the turnover has done it in more than 24%.

Juan Antonio Sánchez Torres, president of Ganvam.

Brake to other practices and uses

With seen to the new year also does necessary update determinate normative, that although have a perfectly legal base, prejudice the activity of the sector. Without going more far, the peritación and compensation in situ without VAT that carry out some insurers derives with frequency in situations of fraud and picaresque that aggravate the already of by himself difficult situation of the posventa.

Another pending subject is the effective liberalisation of the ITV's to give entrance to the dealers and workshops. Waiting for knowing the result of the allegations to the project of Royal decree, the networks of distribution are conscious that it will have to surpass the main escollo so that the real application of this normative see the light: the negotiation with the autonomous communities.

Greater leaderships for the big forgotten

Finally, the patronal alluded to the need to improve the demand of industrial vehicles that, in spite of dragging a descent of 73% from the start of the crisis, have been the eternal forgotten of the politics of automotive sector. The PIMA Air, recently exhausted, will give them a true break in 2014, but will be necessary to take advantage of this inertia with a new endowment to promote the sales and sanear this market ailed also of a strong aging of the park.

The motorcycles also deserve a quotation aside like solution mobility, especially of the more youngsters, duramente punished by the unemployment. Another of the challenges for 2014 is to achieve print a greater impulse to the plans of purchase for the market of the two wheels, that accumulates a shrinking of 70% in the last six years. The forecast is that these vehicles close the year with some sales of 115.000 units, in front of the 390.000 of 2007.

According to Juan Antonio Sánchez Torres, “in sight is that have problems that plant us to ones and others in the same side of the table. Ganvam is by the union, the understanding, the loyalty and the patience. We are forced to understand us and of course, have to and want to can speak of everything. In this way of the understanding and of the dialogue always will find us ”.