European auto sector calls for incentives to kickstart recovery

Brussels – The European Tyre and Rubber Manufacturers’ Association (ETRMA) is among a group of industry associations behind a new recovery plan for the EU automotive industry, which has been hard-hit by the Covid-19 crisis since early March.

In a 25-point action plan, the trade bodies – which also include European Automobile Manufacturers Association (ACEA), European Association of Automotive Suppliers (CLEPA) and umbrella trade group CECRA – called on EU and national decision makers to coordinate vehicle renewal schemes for all vehicle types and categories across the EU. 

The move, they argued, will boost private and business demand, support economic recovery and help 'rejuvenate' the European vehicle fleet.

Commenting on the action plan, ETRMA secretary general Fazilet Cinaralp said the trade associations aimed to contribute to a “Covid-19 recovery” policy.

“A successful restart [of economy] requires a supportive regulatory framework that protects public health, minimises the impact on the economy and ensures a transition to a circular, carbon-neutral economy,” Cinaralp noted.

Stating that it was 'cruicial' to bring the automotive chain back into motion, ACEA director general Eric-Mark Huitema called for “targeted measures" to trigger demand and investment. 

“Demand stimulus will boost the utilisation of our manufacturing capacity, safeguarding jobs and investments,” he added. 

Restarting the automotive sector will act as “an engine of overall economic recovery” due to significant employment impact and immediate knock-on effect on other sectors, stressed Sigrid de Vries, secretary general of CLEPA. 

The European automotive sector employs 13.people, accounting for 6.1% of all EU jobs. In addition, the industry generates a trade surplus of €84.4 billion for the EU, while bringing revenue of €440.4 billion for governments in major European markets.