Brussels, 29/10/2008 (Agence Europe) - Concerned by the employment situation in the European motor car sector which has been severely affected by the financial crisis and the world economic slowdown, stakeholders in the high level CARS 21 group met in Brussels on Wednesday 29 October to adopt recommendations on measures to support the industry and ensure it remains competitive in a cut-throat environment. They agreed that the European motor car industry had to be a world leader in clean, safe and affordable vehicles in order to maintain jobs and meet the challenge of climate change. They also highlighted the importance of European manufacturers being able to compete on equal terms on international markets. Lastly, they agreed to set up a task force to promote eco-friendly vehicles.
CARS 21 was set up by the European Commission in 2005, and is chaired by Industry Commissioner Günter Verheugen and made up of representatives of all sectors of the automotive sector (see EUROPE 8866). Its task is to provide recommendations for an appropriate regulatory framework for the sustainable development of a competitive European automotive industry. On the basis of recommendations adopted at the end of 2005 (see EUROPE 9087), stakeholders agreed on Wednesday a list of 16 recommendations, covering, in addition to the points below, issues such as road safety, improving the internal market, restructuring of the sector, taxation and incentives and information on vehicle repair.
Regulatory framework and better regulation. Stakeholders agreed that particular attention had to be paid to deadlines legal consistency, aggregate costs and the impact on financial accessibility, employment and international competitiveness. Deeming the Commission's international harmonisation policy a success, they called for it to be pursued in order to set the conditions for fair competition on the world market and to promote the adoption of European standards internationally, through the UN's Commission for Europe.
Fuel efficiency, energy and environment. Stakeholders agreed that the policy for reducing CO2 emissions must be based on an integrated approach that included vehicles, fuel, consumers and drivers, and infrastructure. To support the development and use of modern environmentally friendly fuel-efficientt vehicles, stakeholders decided to set up a task force to look at technical, regulatory and economic obstacles to “green” cars and to suggest how to move forward. They suggest, too, a review of the New European Driving Cycle, in due course but before the new generation of CO2 emissions standards. They feel, too, that, in the long term, all players involved in the integrated approach should take steps to ensure that road transport in Europe has a smaller carbon footprint by 2050. Lastly, stakeholders agreed to concentrate R&D on technologies such as hybrid, electric and hydrogen (fuel cell) cars.
International trade and non-EU markets. Stakeholders gave their backing to trade liberalisation, on condition that it works to the mutual advantage of the interested parties. Stakeholders want to see a multilateral trade framework and bilateral agreements free trade agreements with emerging ASEAN, South Korean, Indian and Mercosur markets. They also argue for additional efforts to be asked of China. They underline that it is essential to guarantee intellectual property rights protection.
ACEA wants €40 billion in loan interest loans to speed up development
Speaking to the Commission on behalf of the European Automobile Manufacturers' Association (ACEA), which he chairs, PSA Peugeot Citroën Chief Executive Christian Streiff set out concrete steps to support the industry. As they are having to lay off more and more workers because of falling sales, Europe-based manufacturers are calling for €40 billion in low interest loans and scrapping premiums to speed up the renewal of cars on the roads. Given the sector's difficulties, Commissioner Verheugen would like to see the Community plan for reducing CO2 emissions provide for a less expensive way for the European motor car industry to reach its targets. He also called for tax breaks for the manufacture of green vehicles. Several of his Commission colleagues do not support specific measures that manufacturers are calling for to compensate for the additional costs related to tackling climate change. This position also results from the Commission's refusal to reconsider state aid rules. This explains why, at this stage, the Commission is able only to issue recommendations for the future of the automotive sector and not propose the major plan that the ACEA hoped for. (EH./transl.rt)