European automotive sector appeals for EC help
Organisations representing Europe’s car manufacturing sector and workers’ unions have published a joint “industrial recovery plan” and have called on the European Commission to act now, for fear of hundreds of thousands of job losses.
The statement said: “The economic and social impact of the covid-19 crisis on the automotive sector is particularly severe. Workers, although supported by short-time work arrangements, have seen their incomes reduced, and companies are facing cash drains as their revenues have disappeared. Currently, there is little visibility on what the future holds. If this situation persists, the sector risks a meltdown with large-scale bankruptcies and restructuring.
“During the financial crisis (2008-13), the automotive sector lost 440,000 jobs (in car production and the aftermarket). If no measures are taken, this number risks being dwarfed by the current recession which may be much deeper.”
Suggestions include coordinated measures to support the relaunch of the industry with harmonised guidance on health and safety measures, state aid, investment guarantees, tax breaks and loans.
“To save jobs and companies, it is important to act decisively to ensure the continuity of economic activity, to stave off bankruptcies and to prevent mass layoffs. The EU must maintain the ambition to keep the full automotive value chain inside the EU.”
The organisations are union IndustriAll Europe, Ceemet (European Tech and Industry Employers), ACEA (European Automobile Manufacturers Association), CLEPA (European Association of Automotive Suppliers), CECRA (Vehicle Dealers and Repairers) and ETRMA (European Tyre and Rubber Manufacturers Association).
