By Martin Banks - 4th November 2008
I am looking to the EU to help address such problems, specifically to produce less regulation and less waste of money in the form of subsidies
Czech deputy Petr Duchon on the impact of the financial crisis on his country's car industry
The global financial crisis has started to seriously hit the car industry in Europe, according to EU commission vice president Günter Verheugen.
Speaking on Tuesday, the German official said that, as a result, it is now important to create the right “framework conditions” to enable the industry to remain competitive.
Future objectives should be to ensure that environmental improvements, affordability and competitiveness reinforce each other, he added.
Verheugen, who is responsible for enterprise and industry, was addressing a conference of automotive experts at the permanent representation of Romania to the EU.
His comments were echoed by Petr Duchon, an EPP-ED deputy from the Czech Republic, who said it was predicted that the financial meltdown will lead to the loss of up to 10,000 jobs in his country’s car industry.
“I am looking to the EU to help address such problems, specifically to produce less regulation and less waste of money in the form of subsidies,” he said.
New member states are responsible for about 17 per cent of car production in the EU but the current financial problems has sparked fears about future prospects of the sector in these countries.
Ivan Hodac, secretary general of the European automobile manufacturers’ association, told the seminar, “The current economic crisis only enhances the need to take holistic measures to secure automotive manufacturing in the EU as well as making further progress in the fields of environment and safety.”
He called on the EU to “boost consumer confidence, stimulate the market and renew the EU car fleet”.
The association represents major car manufacturers such as BMW, Daimler and General Motors Europe.
Further comment came from Ioan Motoc, Romania’s ambassador to the EU, who said, “The car industry is a major engine of innovation and growth and consequently a strategic priority for our economies.
“The EU has to work towards a supportive framework to increase the strength of one of its key industries.”
Have your say...
Please enter your comments below.