The automotive sector is one of the main victims of the crisis induced by the COVID-19 pandemic. “A drop in turnover of the order of 30% at the European level,” says Anthony Auert, manager of the Luxembourg AutoMobility Cluster at Luxinnovation. “In addition, many companies in the sector have announced the dismissal of staff. We can clearly expect this crisis to accelerate mergers and the disappearance of companies that are poorly equipped to face difficulties.”
At the same time, some states are developing more and more bonus systems in order to renew car fleets. The result is an acceleration in the sale of electric vehicles, largely supported by subsidy systems.
In Luxembourg, the sector has also been impacted. However, this has not diminished the cluster’s activity, quite the contrary. “It was necessary to understand the needs of companies in the sector during this period of crisis, and to help them find and implement quick solutions. It was also necessary to promote and support the implementation of the new aid measures put in place by the government.”
Luxinnovation, the catalyst
The last few months have also been an opportunity to measure how well the players on the ground were able to adapt. “We have thus supported the launch local manufacturing of the equipment necessary to fight against COVID-19, in particular personal protective equipment.”
Tomorrow does not necessarily look rosy, but Anthony Auert remains confident. “We know that each crisis gives rise to new opportunities for those who know how to seize them. As such, Luxinnovation will have an important role to play as a catalyst to accelerate the recovery.”
This is why the cluster is actively working on the implementation of new cross-disciplinary collaborative projects, enabling the automotive sector to diversify its fields of activity and make it more resilient and less dependent on external parameters. “For example, we are looking to further develop the application of certain automobile technologies to the construction sector.”