Europe’s car industry is in need of immediate support from the European Union and its member states, as production losses could leave carmakers in need of money in just a few weeks time.
Industry association ACEA has asked for “strong and coordinate action” to help manufacturers, suppliers and dealers, all of which are facing “severe” financial difficulties, as reported by Autonews Europe.
“The effect of the coronavirus on the automobile industry is unprecedented,” stated ACEA exec Eric-Mark Huitema in an official statement. “It is becoming increasingly clear that COVID-19 has led to the worst crisis ever to impact the automotive sector.”
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The numbers are in and it appears that production losses due to factory shutdown across the EU amount to no fewer than 1.23 million vehicles so far, with roughly 1.11 million workers affected – and that’s not including the supply chain. The car industry currently provides jobs for 13.8 million people within the European Union.
Huitema also mentioned “grave consequences” for the industry going forward, more severe than what is currently being forecast.
“Firstly, to take concrete measures to avoid irreversible and fundamental damage to the sector with a permanent loss of jobs, capacity, innovation and research capability,” he said. “Secondly, we believe that Europe should prepare to stimulate the recovery of our sector, which will be a key contributor to the accelerated recovery of the European economy at large.”
ACEA also believes that “several companies could face (cash) shortages within a matter of weeks,” calling on the EU to delay compliance of important regulatory targets.
