The European automotive industry is facing an unprecedented crisis due to the corona virus, which could have major consequences for the sector. For instance, many factories are currently closed due to falling demand, supplier shortages and government measures. Trade associations ACEA is calling on the European Union to provide financial support to automotive companies, suppliers and dealers.
Eric-Mark Huitema, managing director at ACEA, talks about the worst crisis that has ever hit the automotive industry. "With all production grinding to a halt and the retail network effectively closed, the jobs of some 14 million Europeans are at stake. We are calling for strong and coordinated actions at national and European level to provide immediate liquidity support to automotive companies, their suppliers and dealers."
Engaging in dialogue
"We appreciate the measures already announced, which provide much-needed immediate support for both workers and companies. However, we must soon enter into dialogue with the President of the European Commission to sort two things out," said Huitema.
"First: taking concrete measures to prevent irreversible and fundamental damage to the sector with permanent loss of jobs, capacity, innovation and research capability. Secondly, Europe must prepare to stimulate the recovery of our sector, which will make an important contribution to an accelerated recovery of the European economy as a whole."
Production of spare parts
ACEA also cites the importance of maintaining the production and supply of spare parts, as well as vehicle service networks. For instance, vehicle maintenance is critical for vital logistics and emergency services such as ambulances, fire brigades and police. "The free flow of medicines, food, fuel, equipment and spare parts in the EU must be guaranteed in all circumstances," Huitema argues.
European Union has a total of 229 factories for the production and assembly of vehicles. These factories employ some 2.6 million Europeans. The automotive sector as a whole provides direct or indirect employment for 13.8 million Europeans, according to ACEA figures. Huitema stresses that the health of these workers and their families is of great importance to European car manufacturers.
Author: Wouter Hoeffnagel
