In 2011, the increase in fiscal pressure on Italy’s automotive sector translated into an increase in income for the State of 1.2 billion euros, but in 2012 supplementary income from cars will double to 2.4 billion euros (0.15% of GDP).
The requests from the automotive sector are for more widespread infrastructures, improved stopping places for trading, the national harmonization of regulations for entering city centres, an increase in IT infrastructures, but also the tools for supporting research and development, with the quantification of multi-year allocations, and reforms available throughout the country and not concentrated only in regions in the south.
These are the only possible answers to the crisis, given that Europe still has an enormous technological heritage and advanced capacities for manufacturing vehicles. But, and this is the opinion also of Fiat CEO Sergio Marchionne, “time is running out and the heads of government and car manufacturers must together find the will and the courage to tackle and resolve the lack of competitiveness in the system as a whole”.
In Europe, the nature of this business is not sustainable for long, “especially with regard to the current levels of demand” – Marchionne said – “because, with the exception of the German market, none of the other major European markets have shown signs of recovery. The balance is still in the red. In Italy in particular the quarterly downturns have never been as low since 1996”.
The beginning of 2012 is critical for the automotive market as a whole – according to Anfia chairman Eugenio Razelli – given that 2011 closed with an even lower number of registrations than in 2010: the 1,740,000 registrations by year end indicate that “demand has returned to the level of 1993-1996”. According to Razelli this is why the first step must be “to open up to change, identify clear goals to be achieved, overcome weak points in the entrepreneurial fabric and, together with the entire country, aim at leveraging the competitiveness that will build solutions for the future”.
In 2011, the increase in fiscal pressure on Italy’s automotive sector translated into an increase in income for the State of 1.2 billion euros, but in 2012 supplementary income from cars will double to 2.4 billion euros (0.15% of GDP). “From our point of view” – Razelli pointed out – “this additional tax burden will only depress Italy’s automotive market even more”. To re-launch the sector, the association suggests reviewing the sector’s fiscal system to make taxation as simple and supportable as possible for drivers by aligning tax burdens with the European average.
Lastly, the world of engines suggests financial breaks, such as promoting green public procurement – to guarantee low levels of particulate and CO2 and to create a “carryover effect” for the ecological products market.