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Tribune News Service
Tribune News Service
Business
Eric D. Lawrence

Manley calls COVID-19 'biggest single risk ever' for auto industry

The CEO of Fiat Chrysler Automobiles says COVID-19 is the biggest risk the auto industry has ever faced and he and the association he leads are calling on governments to spend pandemic recovery dollars to boost electric vehicles and other types of alternatively powered cars in order to meet climate goals.

Mike Manley, who is also president of the European Automobile Manufacturers' Association, spoke during an online conference Tuesday of an urgent need for action. A news release from the association noted that car sales in Europe are forecast to drop by a historic 25% in 2020 and that production there is down by 4 million vehicles this year to date.

"The COVID pandemic is clearly the biggest single risk ever to face the auto industry. It is adding massive pressures on our sector at a time when it is navigating fundamental technological shifts, as well as the prospect of a no-deal Brexit. We urgently need to find ways to pull through this with minimum damage to jobs and investments, while at the same time keeping strong focus on the climate challenge," Manley said, according to the release.

Europe's climate plan requires massive investments from the auto industry, Manley said.

"However, our investments alone will never be enough. If we want zero-emission mobility to become a real option for all Europeans, we also need a vast network of charging points and refueling stations right across the EU, coupled with economically sustainable incentives," Manley said, referencing the European Union.

The release said the association is calling for government support to be channeled toward these areas to stimulate demand for alternatively powered vehicles, which would in turn bolster the continent's economic recovery and its climate ambitions.

Manley's call for government support in this area comes as the industry is being prodded around the world to accelerate its shift away from the internal combustion engine. California Gov. Gavin Newsom, for instance, issued an executive order in September to ban the sale of new gas-powered vehicles in the state by 2035. California has been front and center in recent years in the discussions on the impact of climate change as a result of the devastation caused by wildfires in the West. Officials in other states, such as New Jersey, are also discussing similar efforts to target gas-powered cars.

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