CLEPA PR: Automotive suppliers urge to support economic recovery with coordinated restart of production and early demand stimulus

The automotive system and component manufacturers in Europe are calling on governments to coordinate their restart strategies and stimulate demand in support of economic recovery.


Sigrid de Vries, Secretary General of CLEPA, the association of the automotive suppliers’ industry in Europe argues:


“Covid-19 has brought about a health crisis which, by now, has translated into an economic crisis and the automotive industry is hit particularly hard. The industry is currently organising to resume manufacturing and reconnect supply chains. Recovery is being held back by mitigation measures enacted unevenly by individual member states, liquidity shortages and subdued demand.


Economic recovery strategies must prioritise employment and innovation in Europe as much as underpin the transformation to carbon neutrality and digital society. We are grateful for measures enacted in member states and at the EU level, comprising flexible state aid rules, tax breaks, investment guarantees, loans and other measures. Now, governments must coordinate their plans, to allow the synchronised restart of production and logistics across borders in a safe, timely and smooth manner.


In addition, it will be essential to support the recovery with immediate, targeted measures to trigger demand, such as tax reductions or other purchase incentives as well as stimulus through public procurement.


Purchase incentives would help to bring back capacity utilisation quickly and therefore, safeguard jobs and investment capacity. Such measures will be specifically effective in the automotive industry, which can act as an engine of economic recovery thanks to its vast and complex supply chain, significant employment impact and immediate knock-on effect on other sectors of the economy.


The increased uptake of latest-state technologies will also push the decarbonisation and digitalisation of society as well as contribute positively to reducing casualties on the roads. To yield most effect, incentives should be based on similar criteria across Europe. Their scope should be broad, apply to all classes of vehicles, be technology neutral and differentiate progressively for those vehicles with the latest safety and environmental technologies.


In parallel, the EU should fully leverage all instruments at its disposal to support research and innovation. This includes the EU budget, public procurement and financial support from the EIB.”




    In: CLEPA News, Growth & Competitiveness, Safety
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