Spain Approves Motorcycle Scrappage Scheme

Spain’s Council of Ministers has approved a scrappage scheme for the sector of the two-wheeled vehicles that will go from 225 to 750 euros if the buyer gives up his old motorcycle. This aid program is a vindication of the National Business Association of the Two Wheels Sector (ANESDOR), who thought that a sector which this year has sold about 81,000 motorcycles (50 percent less than the same period of 2008) should not be left outside.

The package, which according to Daily Motos is called MotoE, will be determined by a number of variables as long as the its sale price will not exceeding 9,500 euros, excluding VAT and registration taxes.

ANESDOR is appreciating the aid plan, similar to the car scrappage scheme, passed by the Council of Ministers, as it has been insisting on implementing it so the market does not freeze due to the buyers’ price expectations.

The plan assumes that, under certain conditions, the price of many of the models will have reduced costs to users from next Monday. Manufacturers and regional governments are expected to contribute as well, offering discounts of up to 750 euros for the bigger motorcycles.

“We are very pleased with the implementation of the plan," said Jose Maria Riano, General Secretary of ANESDOR.

"We ask for everybody’s help so that the message of the cost of two-wheeled vehicles is transmitted to the public. The fall we're experiencing this year is really critical and the only way to save the financial situation of this industry and to preserve most of the jobs generated by it is to revive consumption," added Riano.

Motorcycles with less than 250cc, and 5 years or older, can get between 175 and 525 euros. Motorcycles, bigger than 250cc, can get between 250 and 750 euros discount, as long as they are older than 7 years. The Spanish motorcycle scrappage scheme, which is similar to the Italian one, will run until June 2010.