BRUSSELS—A group of European business organizations and trade bodies, including the European Tyre & Rubber Manufacturers' Association, has called for a "bold industrial recovery plan" to revive the region's automotive sector in the wake of the COVID-19 pandemic.
In a joint statement issued May 26, the associations stressed that the recovery blueprint should stimulate sales and revive production while supporting the industry toward a carbon-neutral future.
"Solutions have to be found through timely anticipation of change, an effective social dialogue at all levels, active labor market policies, up- and re-skilling, and support to redevelopment plans for automotive regions," the news release said.
The plan, according to the statement, should include coordinated measures for relaunching the industry and for avoiding further disruptions in supply chains.
In addition, the signatories called for financial support such as tax breaks and state aid to companies to help maintain their resilience.
The trade bodies also called for introducing and reinforcing temporary demand stimuli, such as vehicle renewal plans. Such measures, they added, should be eligible for latest technologies and be differentiated according to safety and environment performance.
"Demand stimulus is needed to restart the assembly lines and to preserve jobs," the statement added.
To support the sector in delivering on the digital and low-carbon transitions, the trade bodies also urged the European Commission to provide, among others, effective technology programs and investment support.
The European automotive sector employs 13.8 million people, accounting for 6.1 percent of all European Union jobs. In addition, the industry generates a trade surplus about $92.7 billion for the EU, while bringing revenue of around $484 billion for governments in major European markets.
Other signatories to the statement were industriAll Europe; engineering technology association Ceemet; the European Automobile Manufacturers' Association; the European Association of Automotive Suppliers (CLEPA) and the European federation of motor trade associations (CECRA).