Brussels, 12 March 2009 – The European automobile manufacturers welcome
the € 3 billion in loans
The European automobile manufacturers welcome
the € 3 billion in loans freed today by the European Investment Bank
(EIB) to finance automotive projects, most of them concerning ‘green’
investments. As the Bank indicated, in total around € 7 billion will
become available in the first half of this year and its budget allows
maintaining similar levels of financing until 2012. “The arrangement with
the EIB underlines the importance of the automobile industry for
investments, R&D and employment in Europe as a whole”, says ACEA
secretary general Ivan Hodac.
The EIB loans will contribute to meeting environmental requirements but
are insufficient to confront the extraordinary economic circumstances.
There is an immediate need for access to financing in general. “At the
moment the financial markets are not functioning despite billions in
government aid to financial institutions”, adds Hodac. Both vehicle sales
and automotive manufacturing are largely dependent on credit and
financing because of the capital-intensive nature of the industry and the
relatively high purchasing price of the product.
The EU must tackle the automobile industry’s problems with utmost
priority. “Viable businesses are at stake and the EU risks doing too
little too late”, adds Hodac. “This is not a question of ‘bailing-out’
but of securing a healthy and fundamental industry.” Another step that
the EU has to take is avoiding additional costly vehicle legislation for
a number of years.
The European automobile industry is a competitive, € 550 billion turnover
industry with a strong commitment to manufacturing world-leading,
high-tech automobiles in Europe. The sector is particularly hard hit by
the economic recession as it suffers from the extraordinary credit crunch
as well as an unprecedented sharp drop in vehicle demand. Lower levels of
automotive manufacturing in Europe have a large spiraling effect on the
wider economy because of the thousands of small and medium sized
companies involved in the supply chain, vehicle sales and after-sales
services.
“The automotive industry is essential to the EU economy. It is the engine
of the manufacturing industries, one of the biggest employers in Europe,
the largest investor in innovation and R&D, and a formidable export
force”, said Hodac. The relative overcapacity in the industry, though
often cited, is not a reason for the troubles that auto manufacturers are
currently facing. “Overcapacity has and will continue to be addressed by
the automobile manufacturers as part of a long-term strategy to
strengthen their global competitiveness and ensure a high-skilled
workforce. The cause of the current crisis is the unprecedented credit
crunch and the rapid deterioration of all key automotive markets. The
European automobile industry is taking its responsibilities; now European
policy makers must follow.”
The ACEA members are BMW Group, DAF Trucks, Daimler, FIAT Group, Ford of
Europe, General Motors Europe, Jaguar Land Rover, MAN Nutzfahrzeuge,
Porsche, PSA Peugeot Citroën, Renault, Scania, Toyota Motor Europe,
Volkswagen and Volvo. They provide direct employment to more than 2.3
million people and indirectly support another 10 million jobs. Annually,
ACEA members invest €20 billion in R&D, or 4% of turnover.