The European car industry is being hit hard by the corona crisis. Now that countries are slowly recovering, a call is made to the EU and the Member States to get things back on track. Four major European trade associations are coming up with an action plan.
The sales figures show that the car industry will need a significant recovery to boost the financial figures again. The cautious hope is that people who now refrain from buying a new car will eventually do so. In that case it can also quickly recover. Nevertheless, the European trade organizations ACEA, CECRA, CLEPA and ETRMA are holding their hearts. They expect a huge noose for the car manufacturers and are therefore launching a list of 25 policy proposals for the EU and the Member States to lend a helping hand to the car industry.
According to the organizations, the necessity is bitter: the car industry is a very large part of the European economy and a ‘kickstart’ for this sector is therefore a good boost for the overall economy. As much as 11.3 percent of the industry in the EU is related to the car industry and it involves roughly 3.5 million jobs. So it is time for action, according to the four sector organizations. Among other things, they call for the opening of borders and the relaxation of border controls (some countries have strict border controls) for all goods related to the car industry. Car dealers and garages should be able to be reopened as soon as possible. The EU must make budget available for buy-back programs for old cars, ‘scrapping premiums’, as it were. This calls for subsidizing the purchase of a new car (even without returning an older car) and further stimulating green mobility.
The director of the European Association of Brand Dealers (CECRA), Bernard Lycke, further explains the policy proposals in an official statement: “To restart mobility and economic activities, it is essential that car dealers and garages reopen as soon as possible in the countries where they are still closed. Targeted purchase subsidies and scrapping schemes for all vehicle categories will not only accelerate recovery, but also make a positive contribution to CO2 neutrality and road safety. “