Stakes are high for European automotive recovery, ACEA figures show
The European Automobile Manufacturers’ Association (ACEA) has published its annual Pocket Guide spelling out the importance the automobile industry has in Europe and for its post-COVID-19 recovery.
ACEA’s annual Pocket Guide provides an overview of the EU auto industry, including the latest sector-specific data on employment, vehicle production and sales, road safety, R&D, the environment and trade flows. New data in the publication confirms that the automobile industry is a key pillar of the European economy and is vital to the wider post-COVID-19 recovery of the continent. Turnover generated by the auto industry represents over 7% of total EU GDP.
“Automobile manufacturers are unfortunately now facing very strong headwinds in the aftermath of the coronavirus crisis, which has hit our sector with an unprecedented force,” stated Eric-Mark Huitema, ACEA director general.
“In the interest of the economic health of the continent, we are calling on EU and national policy makers to urgently step up their political, economic and practical support to our industry,” Huitema said. “It is time to turn words into actions, and to find pragmatic solutions that will help us weather the storm.”
The European automobile industry is in tatters following vehicle manufacturer site closures during lockdown and reduced demand for vehicles on a global scale. Production losses account for more than 2.4 million motor vehicles so far. Looking ahead, car sales are expected to contract by a record-breaking 25% in 2020.
According to the 2020-2021 edition of the Automotive Industry Pocket Guide:
- The automotive ecosystem provides work to 14.6 million Europeans, representing 6.7% of total employment in the European Union.
- With 2.7 million people working on the manufacturing of vehicles at 226 factories in the EU, the auto industry accounts for 8.5% of total manufacturing jobs in the region.
- Almost 18 million vehicles were ‘made in Europe’ in 2019, representing 20% of global vehicle production.
- 5.6 million of these vehicles were exported around the world, generating a trade surplus of €74 billion for the EU last year.
- The auto industry is by far the biggest spender on R&D in the EU, investing an impressive €60.9 billion annually (+6.1% on the previous year), or 29% of the region’s total spending.
- Europe also leads the world when it comes to self-driving vehicles, responsible for a third of all global patent applications.
- There are 313 million vehicles in circulation on Europe’s roads today. Apart from ensuring that people and goods can move freely across the continent, these vehicles are a major source of government revenue, bringing in over €440.4 billion in taxes each year.
Huitema commented: “We stand committed to work with policy makers in Brussels and the EU member states to ensure that our sector can survive and recover – thereby protecting jobs, production and future investments.”