Europe’s car manufacturing industry is slipping deeper into recession and is increasingly dependent on export markets. Production of light vehicles across Europe has dropped back below 2007 levels, with Italy experiencing a particularly severe slump. The worsening crisis was the main topic of discussion at last week’s Spring Congress organised by the Association of European Vehicle Logistics (ECG), which represents companies that ship European cars across the continent.
Speakers revealed some shocking statistics. New car registrations in Italy have fallen to where they were back in 1978, Congress attendees heard. A third of all European car plants are running at just 20 percent capacity. If certain manufacturers are still in profit it was only thanks to strong orders outside Europe, particularly in China, where sales increased by over 10 million between 2008 and 2012.
“Many companies are struggling to survive,” said ECG President Costantino Baldissara. “This is an emergency situation.” Europe’s political class has a responsibility to pay attention to the real economy, he underlined. “Without a strong response there will be a lack of hope, no new jobs and no activity”.
A re-launch of the car scrapping incentives that successively stimulated demand in 2009 was the best solution, he said. “If we are worried about the economies of countries like Greece then we should also be worried about the automotive sector, which makes a larger contribution to the European economy than Greece.”
The automotive sector that ECG serves is one of Europe’s biggest economic drivers, employing around 12 million and contributing around 16 percent of European Union gross domestic product. ECG member companies transport finished vehicles by ship, railway, truck and river barge. Together they directly employ 70,000 and boast an aggregated turnover of Euro 22 billion.
On a positive note, the Spring Congress confirmed the continuing success of the ECG Academy for young logistics managers. Now in its eighth year, the academy has already produced around 140 alumni, most of whom continue to work for both logistics service providers and car manufacturers. Seventeen graduates received their final qualifications at the Congress; around ten are already signed up for the next course, which the association oversees on a not-for-profit basis. In addition to negotiating skills and other core competencies, as well as the valuable experience gained at on-site visits to ports and railheads, the academy provides its students with unparalleled networking opportunities.
Prior to the congress, ECG members elected a new board, which now comprises the following members: Maximilian Altmann (ARS Altmann); Peter Borrmann (STVA); Michael Bünning (BLG Automobile Logistics); Marcos Duato (Flota Suardiaz); Mats Eriksson (AB Skandiatransport); Ömer Gürsoy (Me-Par); Ray MacDowall (ECM Vehicle Delivery Service); Marek Nowicki (P.W. Wega A); Kirill Petrunkin (Autotechnoimport); Antoine Redier (GEFCO); Roberto Volpato (Eliambrosetti); and Konrad Zwirner (Hödlmayr International). The mandates of the ECG President and Vice-President Wolfgang Göbel have another year to run.
