Indústria automóvel europeia assina código de conduta de apoio à retoma da produção

A CLEPA (associação europeia dos fabricantes para a indústria automóvel) e a ACEA (associação europeia dos construtores de automóveis) adotaram um “Código de Conduta Empresarial da Indústria Automóvel para a COVID-19” para apoiar um arranque rápido e sem problemas da indústria automóvel.

in AFIA, 21-05-2020


A AFIA, associada da CLEPA, saúda esta iniciativa tendo traduzido para português o código de conduta:

 

CÓDIGO DE CONDUTA

 

CODE OF CONDUCT

(versão original em inglês)

 

Head of European suppliers group outlines plan to confront coronavirus crisis

Thorsten Muschal, executive vice president sales and program management at Faurecia, was elected to lead the European suppliers association CLEPA in January. He was immediately tested by the auto industry’s biggest challenge in recent memory, the coronavirus pandemic. He spoke with Automotive News Europe News Editor Peter Sigal about how CLEPA members, which have expressed growing worries in recent surveys, can weather the crisis, and what the group’s future priorities are.

in Automotive News Europe, by Peter Sigal, 19-05-2020


What are you doing to help your members, large and small, survive right now?
What we are experiencing right now shows that a European voice and aligned behavior joined in a shared policy approach is more needed than ever. The big members, the Bosches, the ZFs, the Continentals — they all have put task forces in place to manage social systems and protect their people in different countries. They are looking for coordinated political and financing support. For smaller companies it’s more a question of survival.

How can the supply chain keep itself afloat, with factories shut and orders in limbo?
It’s key to make sure that everybody pays to keep the supply chain up and running so the smaller companies don’t fall into bankruptcy. The first thing we say is that nobody should take advantage of this situation. We have seen in a crisis that not everything is rational. We need to push this discipline. It’s a question of ethics.

What lessons could be learned?
In every crisis there is always an “after.” But this one is different. We have a lot to learn. We are all learning the lesson that globalization is a challenging topic, and we see how difficult it is to keep our supply chain working. We also need to think about how we start up again. The megatrends [such as electrification, autonomy and connectivity] will be back and we should not completely neglect our whole agenda.

Outside of the coronavirus pandemic, what is the most pressing issue for CLEPA and its members?
Let me start by looking at the extremely big picture. The auto industry is under a lot of pressure, and it’s facing its biggest transformation ever. It started several years ago with Dieselgate [Volkswagen Group’s diesel-emissions cheating scandal], and now we have digitalization, carbon neutrality and autonomous vehicles. We need to build Europe into an automotive industry powerhouse. To do that, to build on our strengths, we need to make Europe an attractive marketplace. So, we have to raise our voice and have an influence on politicians.

How do you improve Europe’s competitiveness?
It’s always a big bet when you invest in a new technology. Suppliers have to make decisions. Should you localize an R&D center in Spain, Portugal, Germany or France? Where can you find the right conditions and the right political framework? Europe is perfectly positioned globally. On the one side there’s the market in China, on the other is the U.S. market. If Europe shows up at the right time with the right, attractive market conditions, we can build on our leading position. We have a very strong, diverse supply industry that covers a lot of areas.

What sets Europe’s supply base apart?
Innovation is a key differentiator for Europe. We have all the ingredients. We have strong European customers, which are leading automakers, and we have the strongest supply base in the world. This is a position we need to defend and make even stronger. But we are undergoing a huge transformation.

The auto industry did not get what it wanted in the last round of EU emissions targets. How will you approach legislators in Brussels to make your voice heard?
We need to be realistic. The crisis and scandals that started four or five years ago were created by the auto industry. We have hurt our reputation. That’s a fact, whether you like it or not. A lot of policymakers are very critical of this. What we need to do is demonstrate the things we are doing to work toward decarbonization, to make cars safer and more customer friendly. There is a lot of work in front of us, especially with a new European Council. We need to provide the different commissions and with studies and facts, and then have an intensive exchange of views. It’s not only about the cars and the emissions they product. It’s also about the infrastructure and business models.

Can you convince legislators to look beyond tailpipe emissions to the whole CO2 picture?
Tailpipe emissions are certainly critical, and our supply base and automakers are working to improve them. However, we need to tackle emissions in a broader sense, including vehicle life cycle, the grid and infrastructure, and charging stations. We also need to gain end-consumer acceptance. People have questions that need answers: What kind of powertrain should I buy? What is the resale value of my car going to be? Where can I charge my car?

We are still awaiting EU certification for higher levels of autonomous vehicles, including so-called Level 3. Is that a problem for suppliers and automakers?
We see an ongoing trend for stronger and improved assistance systems, but the fully autonomous car remains a long-term vision. There are questions of legislation, liability, mixed traffic between autonomous and traditional cars, and also consumer behavior. Regarding legislation, it reinforces what we expect from policymakers: strong support for the industry to bring ideas into reality, with the proper legislation.

 

MEET THE BOSS

Name: Thorsten Muschal
Title: CLEPA President
Age: 52
Main challenge: Helping Europe’s suppliers navigate the coronavirus crisis and beyond.

 

“We need to make Europe an attractive marketplace. So, we have to raise our voice and have an influence on politicians,” CLEPA President Thorsten Muschal said.

 

 

CLEPA and ACEA Press Release: Automotive CEOs and European Commission discuss recovery plan that bolsters economy and Green Deal

COVID-19: Automotive CEOs and European Commission discuss recovery plan that bolsters economy and Green Deal

in CLEPA, 14-05-2020


CEOs from across the automotive value chain came together for a meeting with the European Commission to align on the priorities for a solid recovery plan for the automotive sector, with a view to stimulating the wider economy and bolstering the transformation to a carbon-neutral society.

CEOs of vehicle manufacturers and component suppliers, as well as their respective associations – the European Automobile Manufacturers’ Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) – held constructive discussions with Frans Timmermans, the Commission’s Executive Vice-President for the Green Deal, and Thierry Breton, Commissioner for Internal Market, during a conference call yesterday evening.

With extended factory closures across Europe, a loss in production of 2.4 million vehicles so far and car sales down by more than 95% in major EU markets last month, the whole sector is at risk of liquidity shortages and sees its performance threatened for some time to come. The situation in the automotive industry has a significant knock-on effect on other parts of the economy.

“The number one priority of the industry is to re-launch the market, thereby enabling production to resume at manufacturing sites across the EU,” stated ACEA Director General, Eric-Mark Huitema. “Given the near-total collapse in sales, it will be crucial to provide a strong market stimulus to enable vehicle makers to fully re-open production facilities and keep people in jobs.”

During the meeting, ACEA and CLEPA called on the European Commission to coordinate national fleet renewal schemes to ensure that the market conditions are harmonised across the continent, and to supplement these with the EU budget.

“As we work on putting the wheels back in motion, we must look for win-win solutions, addressing the pressing environmental, industrial and broader societal needs,” said Sigrid de Vries, CLEPA Secretary General. “The purpose of recovery measures should therefore be two-fold: to re-start the industry and to employ the full range of technology solutions that are available and needed for carbon-neutrality. Hand in hand with investments in renewable energy carriers and infrastructure, this will propel the Green Deal as well as safeguard employment and industrial activity in Europe.”

Although vehicle and component production is slowly starting to pick up again, there are huge discrepancies amongst member states. This is hampering the recovery of an industry that depends on supply chains spanning right across the European continent. The CEOs therefore re-iterated their plea for a coordinated re-start of activities and investments along the entire value chain.

 

***

NOTES FOR EDITORS

CEOs and other industry participants present at the meeting:

 

CLEPA

  • Faurecia; Patrick Koller, Chief Executive Officer
  • Robert Bosch; Volkmar Denner, Chairman of the Board of Management
  • ZF Friedrichshafen; Wolf-Henning Scheider, Chief Executive Officer
  • CLEPA; Thorsten Muschal, President (member of the board of Faurecia)

 

ACEA

  • BMW Group; Oliver Zipse, Chairman of the Board of Management
  • CNH Industrial; Suzanne Heywood, CEO
  • Daimler AG; Ola Källenius, Chairman of the Board of Management Daimler AG & Head of Mercedes-Benz Cars
  • Daimler Truck AG; Martin Daum, Chairman of the Board of Management
  • DAF; Harry Wolters, President
  • Ferrari; Michael Leiters, Chief Technology Officer
  • Fiat Chrysler Automobiles; Mike Manley, Chief Executive Officer and President ACEA
  • Honda Motor Europe; Ian Howells, Senior Vice President
  • IVECO; Gerrit Marx, President Commercial and Specialty Vehicles
  • Jaguar Land Rover; Ralf Speth, Chief Executive Officer
  • MAN Truck & Bus AG; Joachim Drees, CEO
  • Scania AB; Henrik Henriksson, President & CEO and Chairman ACEA Commercial Vehicle Board
  • Toyota Motor Europe; Didier Leroy, Chairman of the Board of Management
  • Volvo Car Group; Mårten Levenstam, Head of Product Strategy
  • Volkswagen Commercial Vehicles; Thomas Sedran, CEO and Chairman ACEA Light Commercial Vehicle General Managers’ Committee

About CLEPA

  • CLEPA represents over 3.000 companies and over 20 national associations and sector associations
  • Automotive parts and system suppliers provide state-of-the-art components and innovative technology solutions for safe, smart and sustainable mobility, investing over 25 billion euros yearly in research and development.
  • Automotive suppliers in Europe employ overall nearly five million people across the continent.
  • More information about CLEPA can be found on www,clepa.eu or https://twitter.com/CLEPA_eu.
  • Contact: Clara Guillén, Communications Manager, c.guillen@clepa.be, +32 2 743 91 20.

 

About ACEA

  • ACEA represents the 16 major Europe-based car, van, truck and bus manufacturers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Fiat Chrysler Automobiles, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, PSA Group, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
  • The ACEA commercial vehicle members are DAF Trucks, Daimler Trucks, Ford Trucks, IVECO, MAN Truck & Bus, Scania, Volkswagen Commercial Vehicles, and Volvo Group.
  • More information about ACEA can be found on www.acea.be or www.twitter.com/ACEA_eu.
  • Contact: Cara McLaughlin, Communications Director, cm@acea.be, +32 485 88 66 47.

 

Automotive industry restarts, but concerns on outlook deepen

COVID-19 is having a major impact on the economy, with an unprecedented halt in retail and manufacturing activity and concerns mounting on consumer sentiment. In April 2020, the Economic Sentiment Indicator in both the Eurozone and EU showed the strongest monthly decline since 1985, with both consumer and business confidence reaching lows last registered in March 2009.

in CLEPA, by Sigrid de Vries, 11-05-2020


This is the dramatic backdrop against which the European automotive industry is trying to ease out of lockdown, carefully ramping up its manufacturing activity. Restarting plants and logistical operations across the EU is a tedious and highly complex process, and ultimately relies on enough demand in the pipeline. It also relies on a functioning internal market, which is far from given today. Member states and regions are at very different stages in the corona crisis, and restart measures would benefit from a much deeper and broader Europe-wide coordination.

CLEPA regularly updates an overview of containment measures in Member States and whether automotive manufacturing and sales activity is resuming or set to restart. The overview includes latest announcements by OEMs on planned production restarts per country, and is part of the weekly COVID-19 news flash the association disseminates to its members.

Volatility of demand is considered the most critical issue for the automotive supply chain at the moment. A CLEPA survey of automotive system and component suppliers in Europe, gauging the impact of the COVID-19 crisis, shows 90% of respondents ranking uncertainty of what and how much to produce as their number one concern. Their future perspective depends very much on consumer sentiment and demand picking up substantially.

Future relies very much on demand picking up

The sector’s outlook has worsened considerably over the past weeks. Over 90% of businesses expect a drop in revenue in 2020 of at least 20%, up from 60% having this expectation in March. Over a third expect a reduction of more than 30%. Profitability will take an even harder hit, with more than half of respondents now expecting to make a loss before taxes. The perspective of a quick recovery worsened significantly as well. Three out of four businesses fear that it will take more than a year to recuperate, whereas four weeks ago the consensus tended towards 6-12 months. One third of respondents foresee a timeframe of two to three years.

CLEPA has urged EU and national governments this week to launch EU-coordinated vehicle renewal schemes to kickstart economic recovery and support the relaunch of the sector. Demand stimulus will help to increase the utilisation of manufacturing capacity and therefore safeguard jobs and investment capacity. The automotive sector will act as an engine of overall economic recovery thanks to the sector’s vast and interconnected ecosystem, significant employment impact and immediate knock-on effect on other sectors of the economy.

This call for action is part of the 25-point Joint Action Plan for a Successful Restart, published by CLEPA this week along with the three other European associations representing the full automotive value chain, from equipment and tyre suppliers, to vehicle manufacturers, to dealers and workshops. Together, the sector wants to contribute to a policy response to COVID-19 that ensures public health, minimises the impact on the economy and maintains focus on the overarching objectives of our time: the digital and carbon-neutral society.

25 points to minimise economic damage and keep focus on digital and carbon-neutral society

Europe needs a strong automotive ecosystem to push ahead with ambitious environmental, digital and road safety targets. Investment in people and R&D remain essential, and yet is under immediate pressure.

To cope with the crisis, a large share of businesses plan to cut investment and reduce their workforce and, according to the CLEPA survey, half of businesses intend to adjust investment and workforce already in the short-term. The remainder foresees such measures being taken in the next 6-12 months. Revision of manufacturing footprint is also considered.

Around five million Europeans work in automotive manufacturing, R&D and supporting operations. In total, the sector accounts for about 13.8 million jobs. With employment Commissioner Nicolas Schmit, first steps are being taken to build a dedicated skills pact for the automotive sector. The crisis is accelerating the transformation of the sector, and industry and policy makers must work together to sustain employment and make the workforce future proof.

To underpin Europe’s long-term competitiveness, the EU should also leverage all instruments at its disposal to support research and innovation. This includes the EU budgets for Horizon Europe, public procurement and financing tools from the EIB. Almost 40% of respondents in the CLEPA survey have already taken steps to cut R&D budgets, with 32% undecided and 30% at this stage having decided against. Supporting the innovative capacity of the sector will be crucial to relaunch from the crisis in a sustainable way. Automotive suppliers are among the largest private investors in R&D, contributing significantly to the competitiveness of the automotive sector in Europe.

 

CLEPA Secretary General

Outlook automotive suppliers worsens considerably, latest survey shows

A survey of automotive supplier companies in Europe to gauge the impact of the COVID-19 crisis shows that the sector’s outlook has worsened considerably over the past weeks.

in CLEPA, 08-05-2020


Over 90 percent of businesses expect a drop in revenue in 2020 of at least 20%, up from 60% in March. 35% percent expect a reduction of more than 30%. Profitability will take an even harder hit, with more than half of respondents now expecting to make a loss before taxes. The perspective of a quick recovery worsened significantly as well. Three out of four businesses fear that it will take more than a year to recuperate, whereas 4 weeks ago the consensus tended towards 6-12 months. One third of respondents counts with a timeframe of 2 to 3 years.

CLEPA, the European Association of Automotive Suppliers, surveyed its membership between April 27 to 30. The input was aggregated by consultancy firm McKinsey this week.

 

90% of respondents rank volatility of demand as the most critical issue for the automotive supply chain

Volatility of demand is considered the most critical issue for the automotive supply chain at the moment, with almost 90% of respondents ranking this topic their number one concern. Often, also, production restarts at very low levels. This makes fixed cost rocket compared to turnover. The further outlook depends very much on demand for vehicles and, hence, for automotive components picking up substantially. In this light, CLEPA together with the other European sector associations representing the automotive value chain, has urged governments to launch EU-coordinated vehicle renewal schemes to kickstart economic recovery and support the relaunch of the sector.

 

On health and safety 85% of respondents indicates to be well prepared and apply proactive risk mitigation measures

To cope with the crisis, a large share of businesses (84%) plan to cut investment and reduce workforce (78%). Almost 40% have already taken steps to cut R&D budgets, with 32% undecided and 30% at this stage decided against. Automotive suppliers are among the largest private investors in R&D, contributing significantly to the competitiveness of the automotive sector in Europe. Revision of manufacturing footprint is also considered.

Half of respondents plan to adjust investment and workforce already in the short-term. The remainder foresees such measures to be taken in the next 6-12 months. To date, the jobs of more than 1,1 million Europeans employed by vehicle manufacturers are affected by factory shutdowns. The wider automotive employment impact is even more critical: the general multiplier counts with 3 jobs in the immediate supply chain and another 3 for the value chain further down the line.

Health and safety on the work floor remains a matter of high priority both during and after the ramping-up of production. 85% of respondents indicates to be well prepared and apply proactive risk mitigation measures. Personal protective equipment (PPE) is seen as the main measure applied on the shop floor, with usage expected beyond the next three months. Distancing measures and decoupling of shifts are widely applied as well.

 

Setor automóvel europeu pede incentivos para reativar recuperação económica

Em comunicado conjunto, as quatro associações europeias da indústria automóvel (CLEPA, CECRA, ACEA e ETRMA) publicaram um plano de ação com 25 pontos para reiniciar a recuperação económica.

in Jornal das Oficinas, por Bruno Castanheira, 07-05-2020


A pandemia de Covid-19 está a ter grande impacto na economia, com uma paralisação sem precedentes das atividades de retalho e produção, gerando uma crescente preocupação no que diz respeito à confiança do consumidor.

O setor automóvel europeu, que foi particularmente afetado, propõe um plano composto por 25 ações essenciais para garantir um forte reinício da sua atividade, em particular, e da economia, em geral.

O plano de ação, destinado aos responsáveis pela tomada de decisões à escala nacional e no seio da UE, contém recomendações tangíveis para emergir com sucesso da crise imposta pelo novo coronavírus.

Foi produzido pelas quatro associações que representam a cadeia de fornecimento automóvel como um todo: de fornecedores de equipamentos e pneus a fabricantes, distribuidores e oficinas de veículos (ACEA, CECRA, CLEPA e ETRMA).

Juntas, querem contribuir para uma resposta política à Covid-19 que garanta saúde pública, minimize o impacto na economia e mantenha o foco nos objetivos gerais dos tempos atuais: sociedade digital e neutra em carbono.

Como parte do plano de ação, o setor exige planos de renovação dos veículos, para todos os seus tipos e categorias, coordenados em toda a UE. Tal impulsionará a procura privada e comercial, apoiará a recuperação económica geral e acelerará o rejuvenescimento da frota de veículos nas estradas europeias.

Os incentivos para compra e investimento devem basear-se em critérios semelhantes em toda a Europa, com base em financiamento nacional e da UE. Planos esses que devem ser aperfeiçoados com bónus pelo abate de veículos e que devem ter em consideração as ambições climáticas e as metas de eficiência de recursos da sociedade, juntamente com o impacto económico.

 

Automotive sector calls for vehicle renewal incentives to kickstart economic recovery

COVID-19 is having a major impact on the economy, with retail and manufacturing activity crippled without precedence and concerns mounting on consumer sentiment. The European automotive sector, which has been hit particularly badly, proposes a plan comprised of 25 key actions to ensure a strong restart of the sector and the economy at large.

in ACEA, CECRA, CLEPA, ETRMA, 05-05-2020


Targeting decision makers at EU and national level, the action plan lists tangible recommendations to successfully exit from the corona crisis. It is issued by the four associations representing the full automotive supply chain: from equipment and tyre suppliers, to vehicle manufacturers, to dealers and workshops (ACEA, CECRA, CLEPA and ETRMA). Together, they want to contribute to a policy response to C-19 that ensures public health, minimises the impact on the economy and maintains focus on the overarching objectives of our time: the digital and carbon-neutral society.

As part of the action plan, the sector calls for coordinated vehicle renewal schemes for all vehicle types and categories across the EU. This will boost private and business demand, support economic recovery across the board as well as accelerate the rejuvenation of the vehicle fleet on Europe’s roads. Purchase and investment incentives should be based on similar criteria across Europe, drawing on both national and EU funding. Such schemes should be enhanced by scrapping premiums, and should take into account society’s climate ambitions and resource-efficiency objectives in concert with the economic impact.

Eric-Mark Huitema, Director General of ACEA, the automobile manufacturers’ association stated: “It is now crucial to bring the entire automotive value chain back into motion. We need a coordinated relaunch of industrial and retail activity, with maintained liquidity for businesses. Targeted measures will need to be taken to trigger demand and investment. Demand stimulus will boost the utilisation of our manufacturing capacity, safeguarding jobs and investments.”

Bernard Lycke, Director General of CECRA, the association of automotive dealers and workshops says: “To relaunch mobility and economic activity, it will be essential that vehicle dealerships and motor vehicle workshops reopen as soon as possible in the countries where they are still closed. Targeted purchase incentives and scrappage schemes for all categories of vehicles will, in addition to spurring the recovery, make a positive contribution towards carbon neutrality and road safety.”

Sigrid de Vries, Secretary General of CLEPA, the association of the automotive suppliers’ industry in Europe says: “Restarting the automotive sector will act as an engine of overall economic recovery because of the significant employment impact and immediate knock-on effect on other sectors. Investment in people and R&D remains key as well. Europe needs a strong automotive ecosystem to stay competitive and push ahead with ambitious environmental, digital and road safety targets.”

Fazilet Cinaralp, Secretary General of ETRMA, the European Tyre & Rubber Manufacturers Association: “The automotive sector is committed to emerging from this crisis stronger than before. A successful restart 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. In close collaboration with the European Commission, we want to contribute to a policy response that brings about a successful COVID-19 recovery.”

 

Europe’s four auto sector associations publish 25-point action plan for successful restart

https://afia.pt/wp-content/uploads/2020/05/25-ACTIONS-for-a-successful-restart-of-the-EUs-automotive-sector.pdf

 

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.

in CLEPA, 20-04-2020


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 members 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.”

 

CLEPA and ACEA Press Release | Automotive industry signs joint Code of Business Conduct to support re-start of production

CLEPA (the European Automotive Suppliers’ Association) and ACEA (the European Automobile Manufacturers’ Association) have jointly adopted a ‘Code of Business Conduct in view of COVID-19’ to support a rapid and smooth restart of the automotive industry.

in CLEPA / ACEA, 15-04-2020


The automotive eco-system resembles an intricate clockwork and today’s unprecedented standstill of operations risks doing a lot of damage to an otherwise thriving, innovative and competitive industry. A successful exit from the corona crisis will require timely sharing of critical and appropriate information, making sure that all players in the value chain can plan and act as effectively as possible. The Code of Conduct therefore contains chapters on health and safety in the workplace, timely communication, contractual requirements and coordination of the restart.

“While the safety and wellbeing of our communities remains first priority, a well-coordinated and timely restart of the sector is of utmost importance to mitigate the impact of the COVID-19 crisis for society. The joint automotive industry code of conduct will make a real difference in this process,” said Sigrid de Vries, Secretary General of CLEPA.

“We are committed to emerge from the crisis even stronger, and all partners in the value chain have a shared responsibility in managing the industry re-launch in a sustainable way. The code of business conduct gives manufacturers and suppliers essential guidance on the approach needed to overcome the COVID-19 crisis,” said Eric-Mark Huitema, Director General of ACEA.

13.8 million Europeans work in the directly and indirectly auto industry. As a consequence of the crisis, more than 1.1 million automobile manufacturer employees are on temporary leave, with a multitude of colleagues affected in the supply chain as well as dealerships. The loss of revenue is estimated to run into double digit percentages and uncertainty remains high as to how quickly the sector can recover. Industry, in close coordination with public authorities is seeking to gradually restart manufacturing in the next few weeks.

As stipulated in the code, COVID-19 represents a global health, societal and economic challenge with severe potential impact on individuals, corporations and countries. The minimisation of risks for employees and the community at large should have always highest priority. Navigating the COVID-19 crisis together in a spirit of partnership, in compliance with the applicable competition laws, yields the best possible results towards protecting individuals and minimising economic damage.

 

CODE OF CONDUCT

 

CÓDIGO DE CONDUTA

(em português)


About CLEPA

  • CLEPA represents over 3.000 companies and over 20 national associations and sector associations
  • Automotive parts and system suppliers provide state-of-the-art components and innovative technology solutions for safe, smart and sustainable mobility, investing over 25 billion euros yearly in research and development.
  • Automotive suppliers in Europe employ overall nearly five million people across the continent.
  • More information about CLEPA can be found on www,clepa.eu or https://twitter.com/CLEPA_eu.

Contact: Clara Guillén, Communications Manager, c.guillen@clepa.be, +32 2 743 91 20.

 


About ACEA

  • ACEA represents the 16 major Europe-based car, van, truck and bus manufacturers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Fiat Chrysler Automobiles, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, PSA Group, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
  • The ACEA commercial vehicle members are DAF Trucks, Daimler Trucks, Ford Trucks, IVECO, MAN Truck & Bus, Scania, Volkswagen Commercial Vehicles, and Volvo Group.
  • More information about ACEA can be found on www.acea.be or www.twitter.com/ACEA_eu.

Contact: Cara McLaughlin, Communications Director, cm@acea.be, +32 485 88 66 47.

 

CLEPA | Restarting the automotive industry is simply impossible without close coordination and support

Within the space of only a couple of days, the automotive industry in Europe has come to an almost complete standstill and millions of people are at home to either work from there or, more often, bide their time until life returns to normal.

in CLEPA, by Sigrid de Vries, 03-04-2020


First priority for the industry is the health and safety of employees and society at large. The many initiatives to manufacture medical equipment and protective gear pay testament to that. In parallel, the sector is doing all it can to minimise the damage to an otherwise thriving and competitive industry. Driven by a strong wish of all players in the value chain and building also on the lessons from the severe crisis in 2008/9, the automotive industry is determined to overcome the situation in a strong fashion.

The situation is, however, unprecedented and the way ahead looks bumpy. A survey amongst CLEPA members between 20 and 24 March provides a clear view of the potential impact, even without having clarity on the duration of the crisis today. A majority of respondents expect a loss of sales by more than 40% during the next 3 months as well as a 25% reduction of revenues over the entire year. They expect an even larger impact on profitability. The biggest impact is expected in Europe, with a total of €58 billion of revenues considered at risk.

The most immediate need is to ensure liquidity. Automotive parts and components suppliers are faced with the same problem of many other sectors: the almost complete lockdown of operations leads to a collapse in revenue, while running costs still have to be paid. Capital is being used up and companies risk going bankrupt if they run out of liquidity.

The many government support measures announced, from relaxation of state aid rules, to tax breaks, investment guarantees, loans and other measures, are therefore all welcome and needed. Measures such as the reduction of working time with wage compensation, temporary unemployment schemes and other flexibilities in labour rules are also crucial.

Industry estimates that the demand for cash is likely to continue for some time to come, especially if consumer demand will not return to pre-crisis levels for a while. Therefore, once the pandemic ceases, the economy will need continued support in order to avoid a drawn-out depression like that of the 30s. Demand-side measures must be part of the picture too.

An equally manifest concern is the colossal job of getting the entire automotive manufacturing chain up and running again.

The orderly restarting of production across the entire automotive industry value chain is simply impossible without close coordination, both within industry and between industry and public authorities. A successful exit from the crisis will require timely sharing of critical and appropriate information, making sure that all players in the value chain can plan and act as effectively as possible. The automotive eco-system resembles an intricate clockwork of interdependent bits and pieces. Solidarity, partnership, and the need for a post-crisis mindset are words often heard within the sector these days.

Policy makers, too, can contribute by playing in concert, orchestrating measures in a timely and coordinated manner as much as possible.

Automotive suppliers call on the EU and member state governments to coordinate the lifting of restrictions. They urge to define common criteria on when the crisis measures can be reduced, to broker a timeline amongst member states for a smooth exit from the crisis, to coordinate on the conditions, measures and timeline for workplace safety, and to watch over the integrity of the Single Market, by letting goods and people move again as soon as possible, in a safe manner.

Europe should also recognise vehicle maintenance and delivery of spare parts as essential services and exempt these from restrictions. Services supporting passenger transport and logistics were already explicitly included in lists of essential services.

The automotive value chain is deep and long, with a wide ripple effect into other sectors of the economy. The sector plays an important role in the economy as a whole, and is in fact ‘system critical’, to use the policy jargon of today. This should be recognised and kept in mind when elaborating crisis-exit measures.

Interestingly, in the CLEPA Pulse Check survey, over 70% of respondents voiced confidence about the possibility of a recovery within one year. However, 94% are expecting lasting changes to their way of working, with 38% expecting an increase in regional sourcing and 37% expecting an increase in local production. These are major tell-tale signs of the fundamental impact the crisis may have.

Just a few weeks ago, in what now seems a different era, the Commission stressed the importance of critical value chains and technical sovereignty in the New Industrial Strategy for Europe. This has only gained dimension and importance. The crisis is sending shockwaves through society and the economy that we cannot yet fully comprehend today, but on which deeper reflection will soon have to start.

 

Sigrid de Vries

CLEPA Secretary General