European Auto Industry Faces Unprecedented Crisis Following Production Losses

European car manufacturers are asking for immediate support from the European Union and the Member States after suffering a loss of production which could make companies run out of cash in just a few weeks. The industry association ACEA demanded strong and coordinated action to help manufacturers, their suppliers, and resellers who are all facing a severe financial crisis. The effect of the coronavirus on the automotive industry is unprecedented, said ACEA executive director Eric-Mark Huitema in a statement. It is becoming increasingly clear that COVID-19 has led to the worst crisis that has ever affected the automotive sector. EU-wide production losses due to plant closings amount to 1.23 million vehicles to date, with some 1.11 million workers affected, not counting the supply chain, said ACEA. The wider sector provides jobs for 13.8 million people in the European Union, said ACEA.