Anfia, Federauto and Unrae launch their alarm cry. The associations say they are disappointed by the measures contained in the relaunch decree
The prediction of market decline
The coronavirus has hit the country’s economy hard (GDP at -9% in 2020 according to Bankitalia) including the auto industry. The sales fell 85.4% in March and 97.5% in April. “In the absence of targeted interventions, a closure of the 2020 auto market with 500,000 / 600,000 units less than the previous year will result in a loss of VAT of around 2.5 billion euros”, explains the note from the three associations. Each year the automotive supply chain generates € 75.14 billion in the Treasury and represents 6.2% of GDP.
Failure to renew the park in circulation
“The production levels of the entire supply chain in Italy – already falling from 20 months to the end of February 2020 – fell by 21.6% in the first quarter of the year, the period in which the vehicles produced decreased by 24% compared to January-March 2019 “the press release continues. Which then mentions the problem of unsold vehicles in the closing period, the so-called stock (over 200 thousand cars according to an estimate), and the climate of economic uncertainty and loss of purchasing power of consumers. “The slowdown in sales – which the bonus-malus mechanism in place is not enough to counter – will be responsible for a failure to renew the Italian road fleet, which, with reference to cars, at the end of 2019, for 32.5% it is still made up of cars before Euro 4 and, even more worrying, for 57% of cars with more than 10 years of seniority “.
“It is incomprehensible – continues the note – how in Italy nothing is done to safeguard the strategic nature and competitiveness of a sector such as the automotive sector, which exports over 50% of its products, appreciated all over the world for their innovative and quality, and which on several occasions has been shown to act as a driving force for the productive recovery of a large part of the manufacturing system and therefore of our economy, and we prefer to face a risk of deindustrialisation “. “We therefore reiterate that the implementation of an important campaign of incentives for scrapping old cars and commercial vehicles and the purchase of latest generation vehicles, and for infrastructure development, as well as the revision of taxation on cars for an adjustment at European level “.
Promotor: “Incentives like in 1997”
According to the Protomor Study Center, the most appropriate formula of incentives to follow would be the one used in 1997 which included a contribution for those who purchased a new car with the contextual scrapping of a car with more than 10 years of seniority, a contribution linked to the granting of a discount of equal amount by the seller of the new car. Promotor also recalls that the 1997 incentives resulted in a increase in registrations of 38.8%, did not cost the Treasury anything because the cost of providing the incentives was more than widely covered by the higher VAT revenue deriving from the cars registered more as a result of the incentives.
May 21, 2020 (change May 21, 2020 | 15:52)
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