Automotive sector appeals to EU heads of state and government on coronavirus recovery plans
ACEA, CECRA and CLEPA – together representing the full automotive value chain in Europe – wrote a letter to the heads of state and government of the 27 EU member states, calling for urgent support for the automotive sector in the wake of the COVID-19 crisis.
The letter can be found here.
- Since the outbreak of coronavirus, most vehicle manufacturers had to completely shut down their development and production sites for several weeks or even months. This has resulted in production losses of more than 2.4 million motor vehicles so far and has impacted the jobs of 1.1 million employees. Many factories are now re-opening gradually, but at levels well below pre-crisis capacity.
- Almost all companies in the suppliers’ industry expect a loss of revenue of 20% or more this year, while more than half anticipate negative results. This will also have a knock-on effect on revenues from taxes and VAT in all member states. With most companies not expecting to leave the crisis behind before 2022, recovery will clearly take time.
- Most EU dealerships were also closed for many weeks, leading to sales collapsing to historic lows across all vehicle segments. Workshops in countries most affected by lockdown measures have also seen their activity decrease by up to 85%.