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Covid-19, automotive collapses: intervention is essential

With the lockdown, the automotive market has completely disappeared - The sector associations believe that a relaunch of the sector can stimulate the entire economic system and propose support actions

Covid-19, automotive collapses: intervention is essential

The health emergency practically wiped out the car, commercial and industrial vehicle market during the months of the lockdown. And it was only in the first ten days of May that orders fell sharply.

From the first estimates, the 2020 market will record drastic declines: for cars alone there is talk of about 500 fewer registrations than in 2019.

Furthermore, they have caused the immobilization of hundreds of thousands of vehicles which, if not sold in the coming months, risk slowing down the recovery of production activities even more. With the consequent occupational risks along the entire supply chain, which it represents 10% of the Italian GDP and employs over 1 million workers.

The automotive sector associations and the social partners suggest that the institutions take advantage of this dramatic socio-economic situation, to adopt measures capable of combining environmental and commercial needs, with industrial ones and the protection of workers in the supply chain.

And to provide, among other interventions, also support for the market through incentives for the scrapping and purchase of eco-compatible cars and commercial vehicles and for infrastructural development.

Without, however, losing sight of the European decarbonisation goals and improvement of air quality.

The resources to be allocated, in this moment of difficulty and a climate of distrust, would support the important investment in the purchase of a vehicle by citizens and businesses.

Not only would they boost the commercial network for the recovery of sales, but they would also allow manufacturers of vehicles, parts and components to restart production, being able to count on the relaunch of the national market.

We must face technological changes necessary for environmental sustainability, safeguarding employment in the sector and, at the same time, supporting the re-internalisation of production processes, which blocks delocalization paths. To this end, it is appropriate to continue the implementation of the work of the Automotive Table.

Meanwhile, the large European countries are adopting extraordinary measures to support the automotive sector. The hope is that Italy - as in the management of the Covid-19 crisis - will set an example in Europe.

Furthermore, taking into consideration that the automotive sector is the sector with the highest multiplier of employment and added value, it is necessary to immediately practice aimpressive incentive policy that allows the sector to relaunch production and the market, so as to be a driving force for the recovery of the entire national economic system.

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