Job losses?
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THE COMMON Market vehicle manufacturing industry is threatened with massive job losses unless action is taken on a European level, according to the EEC Commission.
Although world production has increased by 30 per cent since 1970, Community production has stagnated. One of the sectors to be hardest hit by the recession is the commercial vehicle sector.
Commission figures show the demand for commercial vehicles down by six per cent in 1981 with EEC output falling by 16 per cent. Despite a slight increase in demand, European output fell further in 1982 (by three per cent) and in 1983 (by one per cent).
"The Community is a major exporter of commercial vehicles, expecially heavy trucks," according to the Commission background report. "Unfortunately this is one of the markets worst hit by the recession, especially in the oilproducing states and developing countries which constitute the biggest customers.
"Community exports dropped by 28 per cent in 1983. The value of the remaining exports was nevertheless large enough to retain second place for the Community in the world commercial vehicle market.
"First place went to Japan which concentrates on a range of mass-produced light vehicles (4m in 1983). The Japanese domestic market takes about half of these trucks and the rest are exported."
The manufacturers themselves should be the first to respond to this challenge, but, says the Commission, the problem of invigorating the industry must be faced at European level.