Cases of restructuring in the car industry: - Commission statement

Type: News   Reference: 87937   Duration: 00:05:04  Lieu: Strasbourg, France - European Parliament
End production: 20/11/2012   First transmission: 20/11/2012
In reaction to recent turmoil in car industry in Europe, Commissioner for Employment, Social Affairs and Inclusion László Andor addressed MEP's today in Strasbourg. The French government has bailed out Peugeot Citroen with a $9.1 billion loan, and in Belgium and the UK, manufacturer Ford also announced factory closures. In 2011, Commission approved €4.3m from European Globalisation Fund set to help 778 former car workers in Germany. The previous year, Commission had approved an application from Spain for assistance under the European Globalisation adjustment Fund (EGF). €2.8m EU globalisation fund were set to help 1,429 Spanish car workers. Background : The European automotive industry is one of the biggest industries in Europe with more than €700 billion in turnover and a multiplier effect on the entire economy via links with other sectors (steel, chemical and textile). There are some 180 vehicle plants across the EU. The industry provides over 12 million direct and indirect jobs .Due to the current macro-economic situation, automotive sales in EU markets have declined this year : a 6.8% decline for the first half of 2012 for passenger cars and a 10.8% decline for commercial vehicles compared to already low sales levels of 2011. Current forecasts indicate almost 8% year-on-year decline in the EU passenger car market with sales amounting to 12.1 million units, representing the fifth consecutive year of decline. Recovery of growth is expected only in 2014/2015 and a return to pre-crisis levels is not expected in the next 4-5 years — in certain markets only by the end of the decade.

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TIME DESCRIPTION DURATION
00:00:00 TITLE : Cases of restructuring in the car industry: - Commission statement 00:00:05
00:00:05 EXTERIOR SHOT of the European Parliament, Strasbourg 00:00:05
00:00:10 SOUNDBITE (English) Laszlo ANDOR, Commissioner for Employment, Social Affairs and Inclusion "The situation is particularly worrying in the automotive sector, were important restructuring operations have been announced in the last month and the risk are tangible than more similar announcement can be made in the next period. The latest announcements concern PSA and Ford. PSA announced its intention to close the plant in Aulnay sous Bois and to restructure the plant in Rennes. Ford announced its intention to close its plan in Genk, Belgium, as well as the plant in South Hampton and Dagenham, in the United Kingdom. The total amount including indirect job losses in the supply chain could be as much as 22 000 job losses. More over, announcement were also made by General Motors, Volvo and, in the supply chain, by Faurecia." 00:00:58
00:01:08 SOUNDBITE (English) Laszlo ANDOR, Commissioner for Employment, Social Affairs and Inclusion "The commission will make all possible efforts to minimise the negative social effect of restructuring, which is the core of the Commission message today. For that purpose the Commission will encourage the use of the European Social Fund, for workers retraining and reskilling in the new financial perspective of the structural funds. The Commission will also encourage the Member States to use the European Globalisation Adjustment Fund, the IGF. It is important to note that the automotive is already the sector with the highest number of IGF cases namely 16, and almost 21 000 workers have been targeted by IGF assistance worth 113 million euros." 00:00:47
00:01:55 SOUNDBITE (Dutch) Ivo BELET (EPP, BE), MEP English translation : "You mentioned over-capacity restructuring and asked for our understanding but you know that's just a little too easy to assume that there is no way for you as Commissioner or at European level in general to take some sort of action, we've got to apply European legislation and multinationals like Opel, General Motors, Ford are simply playing one country against another for their subsidies systems and you know try to produce at the lowest possible cost, the lowest social cost, and there's you know a failure to recognise that the European internal market us simply not working, a firm can relocate on the basis of national market, that's not the idea. And it's a very painful illustration of the terrible lack of minimum social standards in Europe." 00:00:57
00:02:52 SOUNDBITE (Dutch) Bart STAES (Green/EFA, BE), MEP English translation : "Yes, we've got to invest in clean cars and advanced production methods and so on, better market situation, financial stimulus for the environment, yes to better market access, yes, we need to use the European Social Funds for all the younger employees, but is that really an answer to the terrible drama that employees, workers in Genk in Belgium, South Hampton and elsewhere are now suffering from? The thing is that car manufacturing are setting the Member States one against one another, fighting over the scraps and meanwhile, their bosses are getting huge amount of salaries and bonuses. " 00:00:45
00:03:37 SOUNDBITE (English) Malcolm HARBOUR (ECR, UK), MEP "The Ford company according to their own figures and you can check them, is going to loose 1.6 billion Euros this year in Europe. Now, Mister Staes was talking about the fact that he felt that the management of Ford could make sacrifices and stop closing plants : I'm afraid, if you are loosing 1.6 billions, colleagues, you have to do something about it." 00:00:25
00:04:02 SOUNDBITE (Dutch) Bart STAES (Green/EFA, BE), MEP English translation : "If Ford are making losses by 1.6 billion euros, how can you explain, my dear colleague, that the CEO of Ford, Mister Mulally, gets paid almost 30 million dollars a year ? 30 million dollars ! And last year, his bonus was 36.3 millions dollars. Now, a company making losses of that kind should not be paying that kind of salary to its CEO, do you not agree with that ?" 00:00:33
00:04:35 SOUNDBITE (Dutch) Philip CLAEYS (NI, BE), MEP English translation : "The European Investment Bank has just granted 100 million euros loan to Ford to set up a plant in Turkey. Others talked about a 190 millions to Ford for their plant in Turkey, in other words, the European Union is paying for and supporting actively relocation of businesses outside of Europe." 00:00:17
00:04:52 CUTAWAYS : 3 shots 00:00:12
00:05:04 END 00:00:00
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