Support measures

The European Automobile Manufacturers' Association (

) has urged the European Commission (EC) to employ a range of measures to support the car industry and prevent a prolonged period of recession.

Data from the ACEA shows that vehicle production fell by 28 per cent in the last quarter of 2008. This figure is around 10 per cent more than previously forecast and the association predicts that, in 2009, European vehicle production will decline by a further 15 per cent if the European Union (EU) does not take drastic action.

Ivan Hodac, secretary-general of the ACEA, said: ‘The EU has started filling a toolbox with potential instruments but too little of them have been actually put into use due to time-consuming procedures and a lack of guidance at EU level.’

According to the ACAE, the key issue that the EU needs to address is freeing up credit for companies amid the current financial crisis. The ACAE also wants further action to be taken to reduce costly regulation and to introduce fleet renewable incentives.