Automotive Code of Conduct signed to restart production

In light of the Covid-19 pandemic, the automotive industry has ground to a halt. Players in the industry are looking to reopen production to stave off the economic devastation that would be caused by a prolonged shutdown.

This is why the ACEA (European Automobile Manufacturer’s Association) and the CLEPA (the European Automotive Supplier’s Association) have come up with and adopted a “Code of Business Conduct”.  The code of business conduct is aimed at providing a roadmap that will allow for the restart of the automotive industry.

A Return to Normalcy

When the pandemic is finally over, players in this industry will have to find ways to share information and data to ensure everyone in the industry can make appropriate plans and be able to act on these plans. The code of conduct, among other things, discusses how information will be shared, contractual agreements, health and safety as well as how the restart of the industry will be coordinated.

The Secretary General of CLEPA, Sigrid de Vries, concedes that even though the safety and wellbeing of the whole community are important, it is also important to ensure that there is a well-coordinated and timely jumpstart of the industry once the crisis ends. This, he says, will help minimise the impact of the pandemic on the society. He concludes by saying that the code of conduct signed will be of utmost importance once this process starts.

Director General of ACEA, Eric-Mark Huitema, on the other hand, says that the code of conduct is meant to ensure the industry emerges stronger after the crisis. He also says that everyone in the industry has a responsibility to ensure that the industry restarts in a sustainable way. The code of conduct signed, he says, will be important in providing the guidance all players need to overcome the effects of the Covid-19 crisis.

Impact on the Industry

The Covid-19 crisis currently affects over 13 million Europeans who work in the automotive industry directly and indirectly.  In addition, over 1 million people who work for automotive manufacturers are currently on leave, which affects everyone in the automotive supply chain. These include businesses that are supported by factory workers, car dealerships, and insurance brokers who specialise in selling motor trade insurance.

The losses that will be incurred because of this crisis are estimated to be very high, with the uncertainty hanging over when the industry will get back on its feet making things worse. The industry, therefore, has a vested interest in working with authorities to restart the industry gradually.

An Assessment of the Crisis

The signed code of conduct stipulates that the coronavirus pandemic presents a global health challenge that will cause economic and societal challenges that will affect countries, individuals, companies and businesses. The code of conduct also concedes that there should be steps taken to minimise risk to employees as well as their communities and this should take the highest priority when finding ways to reopen the industry.

The coronavirus will continue to impact businesses negatively for the foreseeable future. It is good to see that players in the automotive industry are looking for ways to reopen manufacturing and doing their part to minimise the economic impact of this crisis.

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