The European Automobile Manufacturers' Association (ACEA) released a statement on November 8 expressing its concerns regarding the fall in new car registrations in the European Union from 15.5 million in 2007 to about 12 million units in 2012. The association said that new car registrations are expected to have dropped by over 3 million between 2007 and the end of 2012, making 2012 the worst year since 1995.
"Vehicle sales will not recover to pre-crisis levels in the near-to-mid future, and so the industry needs to adjust for the overcapacity that exists," stated Ivan Hodac, secretary general of the European Automobile Manufacturers' Association (ACEA).
The ACEA statement said that the industry needs a supportive framework and strong industrial policy more than ever in order to keep jobs and production in Europe. The ACEA therefore welcomes the European Commission's recent Communication on Industrial Policy as well as CARS 2020, the action plan that it launched today, November 8, for a competitive and sustainable automotive industry in Europe.
The industrial policy and CARS 2020 put the focus on developing long-term policies and facilitating investments for the future. "This is necessary but not sufficient," explained Mr. Hodac. "Recent events show that the car industry in the EU is undergoing an important process of adaptation and restructuring right now. The EU should urgently use all the means at its disposal to mitigate the social and economic consequences of this process," he stated. In particular, it should explore ways to improve labor flexibility and support the affected workers and regions, the ACEA official added.