Scandinavian automotive suppliers association, FKG, says it will take a possible maximum of a year for its members to extricate themselves from the current economic downturn as indicators across Northern Europe look increasingly optimistic.
Addressing 450 of his members at this year’s FKG Annual Suppliers Forum in Gothenburg this week, managing director, Fredrik Sidahl, pointed to a rising mood of confidence in Scandinavia as component manufacturers start to respond to greater OEM demands.
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“In Europe, we are going to get out of this locked-out position in six months, perhaps a year,” said Sidahl. “We call it the light in the tunnel, it is not fantastic, soaring upwards, but there is still optimism.
“We have had a very difficult period and we have learned about productivity [and] automisation, that is, producing with fewer people. A lot of positive butterflies [are] in our stomach – we have to dare to step into the unknown.
“There is an enormous amount to do – the market is out there – dare to do it.”
The FKG chief cited the UK as proof of Europe’s resilience coming out of the downturn, noting the British market had grown 8% last year, but also pointed to the latent potential of emerging markets.
“UK is fantastic – [it] is growing enormously,” said Sidahl. “8% growth last year – that is unique in Europe – in the world I would say.
“[Some] 1.85bn can afford to buy a car in the world and about 900m cars [are] driving around the globe, so somewhere 900m are missing.”
Sidhal’s upbeat mood was echoed in the cavernous hall of the Gothenburg Chalmers University of Technology, where the majority of FKG delegates in a show of hands, expressed optimism for their businesses, despite undoubted challenges in Southern Europe.
