The European commercial vehicle manufacturers have called upon the European Union and Member States to act now to prevent business failures in the industry as the economic recession creates unprecedented problems for CV manufacturers.
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“This is not a normal cycle; we are experiencing the sharpest downturn ever. Governments must act to prevent the failing of viable businesses, and they must do so in a coordinated way,” said Leif Östling, CEO of Scania and chairman of the ACEA commercial vehicle manufacturers board.
He was speaking today in Leipzig at the International Transport Forum, a three-day conference gathering transport ministers from the EU. The Forum coincides with the EU Competitiveness Council, today in Brussels, which will assess crisis measures to support Europe’s industrial base.
ACEA says the financial and economic crisis has triggered a sharp drop in transport activity and subsequent sharp decline in demand for commercial vehicles.
It says that the order intake for heavy trucks stalled at 10,000 in the first quarter of 2009, compared to 100,000 a year ago. Adapting to the crisis, manufacturers expect commercial vehicle production to at least halve this year, putting great pressure on employment levels both at vehicle manufacturers and their suppliers.
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By GlobalData“Progress towards sustainable mobility requires a thriving industry. In the current extraordinary economic and financial situation, however, the relative cost of the regulatory burden on our industry increases. This is an issue that must be addressed. The legislative framework should be carefully scrutinised,” said Östling.
“Furthermore, there are many infrastructural and construction projects planned for the future that could be launched right now.”
Referring to the European elections early next month, Östling added: “This is an issue that the new European Parliament should embrace as well.”
Governments must also act to restore the functioning of the financial system, said Östling. “The lack of credit is a particular problem in our industry. We have many customers that could show a valid business case for investing in new vehicles but are unable to finance these investments due to the overall lack of credit facilities.”
See also: BELGIUM: European CV sales down 42% in April
