Europe’s automakers are calling for immediate support from the European Union and member states after suffering a production loss that could render companies short of cash in just weeks.
EU-wide production losses amount to 1.2 million vehicles so far, with some 1.1 million workers affected, ACEA said. The wider sector provides jobs for 13.8 million people across the European Union, ACEA said.
Recently, the ACEA together with the European industry associations for suppliers, dealers and tire makers, wrote that “several companies could face cash shortages within a matter of weeks” and called on the EU to delay compliance of important regulatory targets as the crisis has presented unforeseen obstacles. “We believe therefore that some adjustment would need to be made to the timing of these laws,” the organisations said. “It is very likely that new car and trucks sales will have to take the biggest hit since 1945,” said Juergen Pieper, analyst at Bankhaus Metzler.
• Continental said about 30,000 employees, or half their local workforce, have been registered for state wage support and shorter working hours. In scrapping their outlook, the company followed a spectrum of firms across Europe who have said the outbreak makes it nearly impossible to predict revenue.
• Valeo are slashing investment and costs as well as putting staff on partial unemployment, including development engineers. “April will also be very difficult because populations will remain confined in many countries,” CEO Jacques Aschenbroich said. “We must be prepared for a very, very difficult next few months.”