COVID-19: Automotive sector calls for vehicle renewal incentives to kickstart economic recovery

COVID-19 is having a major impact on the economy, with retail and manufacturing activity crippled without precedence and concerns mounting on consumer sentiment. The European automotive sector, which has been hit particularly badly, proposes a plan comprised of 25 key actions to ensure a strong restart of the sector and the economy at large.

Targeting decision makers at EU and national level, the action plan lists tangible recommendations to successfully exit from the corona crisis. It is issued by the four associations representing the full automotive supply chain: from equipment and tyre suppliers, to vehicle manufacturers, to dealers and workshops (ACEA, CECRA, CLEPA and ETRMA).

As part of the action plan, the sector calls for coordinated vehicle renewal schemes for all vehicle types and categories across the EU. “This will boost private and business demand, support economic recovery across the board as well as accelerate the rejuvenation of the vehicle fleet on Europe’s roads. Purchase and investment incentives should be based on similar criteria across Europe, drawing on both national and EU funding. Such schemes should be enhanced by scrapping premiums, and should take into account society’s climate ambitions and resource-efficiency objectives in concert with the economic impact,” ACEA says.