Days pass and the devastating extent of the damage caused in that day emerges more and more clearly Valencia from the storm, called DANA. The catastrophic climate event not only left behind huge economic losses, but tragically caused many victims.
A week later, the affected car dealers in Valencia are asking the government urgent interventions to mitigate the economic impacts suffered and to start a recovery and recovery process as soon as possible. An aspect that may seem somehow “repairable” but which, if you think about it, is a real blow to the sector, locally.
The storm hit approx 40 dealers distributed in various areas of the municipality of Valencia, with huge financial consequences to say the least. According to the Federation of Automotive Dealer Associations (Faconauto), the automotive sector has suffered overall damage of around 430 million euros. Furthermore, also considering the impact on the industrial vehicle sector, it is estimated that the total damage will rise to over 490 million euros. A figure close to half a billion euros for just one limited disaster is definitely a lot.
To deal with the crisis, the regional government led by Carlos Mazón allocated 200 million euros at the beginning of the week as direct support to damaged dealers. In addition, it has provided a fund of 864 million euros to support the replacement of 80,000 damaged cars and another 400 million to cover the loss of 10,000 commercial vehicles also in Valencia.
Faconauto underlined the need to implement these measures without delay, in order to allow the sector to re-establish its activities and guarantee work continuity to 16,000 active employees in the region.
Apart from this, the National Association of Motor Vehicle, Repair and Spare Parts Sellers (Ganvam) has also issued an official notification. The central government is asked to activate the lines of credit ICOs specifically for natural disasters, allowing dealers in and around Valencia to quickly access funds that can cover losses.
Topic: Car Market
