Spain extends car subsidies this year and next

MADRID, Oct 24 (Reuters) - Spain will extend subsidies for car buyers this year and next, its industry minister said on Saturday, trying to sustain a bump in sales in September for one of the crisis-hit economy's key sectors.

The government will provide an additional 40 million euros to cover the purchase of 80,000 vehicles for the rest of the year, and seek parliamentary approval to renew its Plan 2000E next year.

The initial 200 million euros offered under Plan 2000E to support new car buyers struggling to counter credit restrictions and soaring unemployment is already close to running out after a strong take-up of the programme.

"With these two decisions, to extend and renew Plan 2000E, the government confirms its commitment to the strategic automobile industry," Industry Minister Miguel Sebastian told reporters.

Spain recently welcomed Renault's (RENA.PA) decision to extend the life of its Valladolid plant with three new models and has been fighting to keep as many jobs as possible at its Opel plant in Zaragoza following Magna's (MGa.TO) proposed takeover of the automaker.

"It's clear that if we want the sector to continue to rely on Spain, we need a dynamic market where cars can be sold. That's one of the objectives of Plan 2000E," Sebastian said. Spanish car sales jumped 18 percent in September after 17 straight months of falls in a sign that government subsidies for the purchase of new cars were having an effect.

Under Plan 2000E, car buyers get a 500-euro subsidy from the government, 500 euros from the respective regional government and another 1,000 euros from the manufacturer.

The programme is in addition to the government's 700-million euro Plan-Vive, which subsidises the acquisition of energy-efficient cars and replacement of old vehicles.

(Reporting by Tracy Rucinski; editing by Patrick Graham)