Coronavirus Causes Havoc on European Union Auto Biz

Coronavirus Causes Havoc on European Union Auto Biz

Coronavirus Brings EU Auto Biz to Grinding Halt

As many as 14 million jobs are at stake since entire manufacturing and retail network in European Union at a standstill

Coronavirus has caused havoc on the automotive industry across the world. Majority of the members of the European Automobile Manufacturers’ Association (ACEA) have already announced temporary closures of plants due to plunging demand, supply shortages as well as government measures. Additionally, the ACEA is also facing cases of corona infections and quarantines among their employees.

Across the European Union, vehicle manufacturers operate as many as 229 vehicle assembly and production plants. The facilities directly employ 2.6 million people in manufacturing, whereas the wider auto sector provides indirect and direct jobs for 13.8 million people in the EU. ACEA has called for coordinated actions at national and EU level to provide immediate liquidity support for automobile companies, along with suppliers and dealers.

Eric-Mark Huitema, ACEA Director General, has appreciated the policy measures that have already been announced that ensures immediate support for employees and companies alike. However, he has also called for Europe to stimulate the recovery of the auto sector, a key contributor to the accelerated recovery of the European economy at large.