The Valencian automotive industry maintains employment, although the concern about Ford stretches the ERTE

The automotive sector "has done its homework", insists the manager of the automotive cluster of the Valencian Community (AVIA), Elena Lluch.

Thomas Osborne
Thomas Osborne
18 May 2022 Wednesday 06:20
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The Valencian automotive industry maintains employment, although the concern about Ford stretches the ERTE

The automotive sector "has done its homework", insists the manager of the automotive cluster of the Valencian Community (AVIA), Elena Lluch. According to the survey that the entity has carried out with its 120 partners, the grouped turnover has amounted to 11,800 million euros in the last year, a figure that they recognize is "slightly lower" than that of 2019.

And all in a context of concern before which they are "expectant", as explained by its president, Mónica Alegre, for Ford's future decision on the electrification of the Valencian factory, key for the auxiliary industry. "What we are doing is offering the full potential of the cluster to Ford, but we just have to wait," she added.

Despite the fluctuations in the supply of components, the consequent reduction in production, the fall in demand and the circumstances that weigh down the profitability of companies, AVIA has maintained employment. There are 24,500 employees, 6.86% of industrial employment in the Valencian Community.

But they do so not without taking advantage, in many cases, of measures such as ERTEs, because right now "of the main value chain, around 80% have a current ERTE, which does not mean that they are applying it," Lluch clarified. The president of AVIA assured that "50% of the companies that work for Ford are taking advantage of ERTE, because all those that are in the business park are at the same time."

However, in a year marked by uncertainties - "we no longer know if it makes sense to make four-year strategic plans", commented Elena Lluch -, there have also been joys to celebrate.

The future installation of the battery gigafactory in Sagunt opens "opportunities for all companies", explained Alegre, who has already requested a meeting with the Sagunt City Council to explain the work carried out by the automotive sector which, in numbers, represents the 11.24% of the Valencian GDP.

"Seat-Volkswagen comes here because there is a robust and competitive sector, the labor climate is stable both socially and politically, and all of this together will allow us to see the fruit of this reconversion that the sector is undergoing," he added.

Due to the reconversion of the sector, the cluster is working on different electric mobility projects and thus, they will celebrate the second edition of Smart Mobility Valencia in September, an event to publicize the capabilities of the sector and that seek to increase the number of exhibitors and visitors celebrating it at the City of Arts and Sciences.

"We are working, but we also ask that the commitment to the sector be maintained, that work be done to install the investments and that they keep pace with how the industry is doing," said Alegre. "To manufacturers, who understand the situation of suppliers, with all the increase in raw materials, which are sealing our profitability and, please, try to speed up tools to help us continue and face this promising future", requested the president of AVIA.

In his speech this Tuesday, AVIA has wanted to adhere to the business requests of the Valencian Community. "We also ask that public works be speeded up, also those that have to do with the Mediterranean corridor, and it is also important that the problem of energy prices be solved," Alegre recalled.

On the other hand, the president of the cluster pointed out that "all that labor reform that makes it difficult to manage temporary work is going to harm us, and ERTEs, for example, could become EREs," she warned.


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