Brussels, 13/01/2005 (Agence Europe) - Within the framework of a new European Commission initiative aimed at strengthening the competitiveness of the European motor industry, Industry Commissioner Günter Verheugen and the president of the European Automobile Manufacturers' Association (ACEA) and CEO of the Volkswagen group, Bernd Pischetsrieder, announced on Thursday during a press conference the creation of a High Level Group called "Competitive Automotive Regulatory System for 21st Century" (CARS 21), which will be responsible for making recommendations for improving the competitiveness of the European motor industry at world level.
During a press conference, Günter Verheugen stressed that the "European automobile industry, which generates over 2 million direct jobs and nearly 10 million indirect jobs, is of crucial importance for European competitiveness, growth and employment". "There is no reason to be pessimistic if one reads the 2004 report on European competitiveness, published last November, which contains an indepth analysis of the motor industry as well as the challenges and strategies of this sector. The EU is leader in terms of research and development, high-tech technology and innovation in the sector. We produce one car out of three worldwide and our foothold on the Chinese market proves that we are not unsuccessful". "The situation is, however, far from really rosy", he added, recalling that productivity in the motor industry in Europe is 25% below that of the United States and 30% behind Japan, and that the hourly cost of labour, which is $32.7 in the EU15 (the highest being in Germany with 36.8 per hour) is far higher than in South Korea ($12.9) and Japan ($29). The average hourly cost for the Fifteen is nonetheless below that of the United States which amounts to $33.8. Mr Verheugen placed emphasis on the "substantial overcapacity which, together with the pressure from Asian competition, penalises the European motor industry".
"I am convinced that the EU can compete if we offer better quality, better technology and better services. Lean, clean and safe - this is the way forward. I would like CARS 21 to develop concrete, brave and innovative ideas and recommendations on how we can win pole-position in the global car race", the Industry Commissioner continued. "Naturally, the fate of the car industry will first of all depend on the individual performance of companies but industrial policy also has a role to play", he added. The High Level Group CARS 21 established with a view to developing a competitive regulatory system for the automobile sector of the 21st century will be chaired by Mr Verheugen and composed of leading figures from the EU automobile sector as well as representatives of Member States, the European Parliament, trade unions, NGOs, consumers and the Commission. Its mandate will above all consist of: (1) developing an integrated strategy for sustainable development of the industry; (2) defining the best possible regulatory approaches to prevent over-regulation; and (3) identifying the necessary conditions to ensure that innovation efforts give the European industry a first mover advantage. The first meeting of the group is scheduled for March 2005, and two other meetings should take place in 2005 so that the group may make recommendations before the end of the year and so that, by early 2006, the Commission may present a programme and concrete action programmes with a view to promoting the competitiveness of the motor industry.
Mr Verheugen also intends to fight the bureaucratic obstacles and the excessive regulations to facilitate the task of companies by making type approval of vehicles in the EU less complex by the growing application of United Nations rules. "I have decided to suggest that my colleagues withdraw the relevant European directives and replace them by United Nations regulations. This should allow the duality between international regulations and Community directives to be abolished. For the European industry, this means that it will be able to concentrate on a single packet of requirements. Furthermore, the developing countries that have adopted the United Nations regulations have to guarantee mutual recognition of the vehicle components that have been certified conform to these regulations. The initiative should help to strengthen the competitiveness of the European motor industry", the Commissioner stressed. Placing emphasis on how urgent it is to "reverse the trend" of breathless competitiveness in Europe, ACEA President Pischestrieder approved the need to "draw up a legislative and regulatory framework that is not in contradiction to the European automobile industry which requires long term investment that must be secured". "Reduction in red tape is part of a broader plan", Verheugen added.
The Commission will soon present a document developing a plan to simplify legislation and possibly withdraw legislation that is no longer relevant today, he continued, saying that, in future, "we shall no longer propose legislation without knowing the impact it will have on cost, norms and consumer prices. Any legislative proposal will therefore be subject to an impact assessment which will allow us to carry out a competitiveness test. I shall not support any proposal that does not pass the test". "Regulations will not however be totally excluded from the safety, health and environment areas", he went on, specifying that the Commission has been carrying out an ambitious environmental standards programme over the past ten years that it does not intend to modify.
Mr Verheugen also mentioned that he would support a document published this week on emissions targets and relating to tax incentives applying to diesel engines, recommending an indicative value of 5 milligrams in particles per kilometre. On the basis of the indications set out in the report, the Commissioner pointed out that he would suggest during this year a proposal for an Euro 5 regulation giving stricter norms than those in the Euro 4 regulation on limiting gas emissions, and which will be the next regulation for Member States with higher ecological standards.
In addition to its chairman, Günter Verheugen, the High Level Group CARS 21 will be composed of two Commissioners -Jacques Barrot for Transport and Stavros Diomas for the environment -, five ministers: -British Margaret Beckett for the environment, German Wolfgang Clement for economy and employment, French Patrick Devedjian for industry, Czech Martin Jahn, Vice Prime Minister, Italian Pietro Lunardi for transport; and two MEPs: German Garrelt Duin (PES) and British Malcolm Harbour (EPP); as well as six industrialists: Armand Batteux, European Association of Automobile Manufacturers, Wilhelm Bonse-Geuking, European oil industry, Lewis Booth, Ford Europe, Leif Johansson, AB Volvo, Sergio Marchionne, FIAT, Bernd Pischetsrieder, ACEA and Volkswagen, and Louis Schweitzer, Renault; in addition to David Baldock (Director of the institute for European environmental policy), Tony Janssen (President of the European Federation of Metalworkers) and Max Mosley (President of the international automobile federation).