Brussels, 19/11/2008 (Agence Europe) - The decline of the car industry, which is still very important in several EU member states, is causing concern among governments and MEPs and the latter have quizzed the Council of the EU and the Commission about the options available for providing aid to the industry.
Speaking for the Council, French politician Jean-Pierre Jouyet said that the European Council in December this year would examine the European Commission's suggestions and any national plans to help the car industry, but stressed that action had to be fully coherent with other European policy objectives and respect the integrity of the common market. He said it wasn't in anyone's interests to try and take advantage of the crisis. The statistics illustrate the scale of the crisis facing the car industry, particularly in the United States, where the sale of new cars has slumped 32% over the last two months, and also in Europe, where there was a 4% fall in new car registrations from January to August 2008. Jouyet said the car industry was making huge efforts and most car manufacturers would remain in profit in 2008 because of the huge rises in productivity over the past few years. The competitive position of the EU in the world market is “relatively good” he said, stressing that he was measuring his words, and this was partly because Europe was implementing the best policy for new models (cheaper and greener) and the financial situation facing the European car industry was relatively healthy at the moment. He said vigilance was necessary all the same and state aid from outside the EU must not create an uneven playing field, but targeted, temporary measures for the car industry may prove useful, he added. Jouyet said the EU was ahead of others in terms of the environment because it had made huge investments in R&D, and it should remain ahead.
It is hardly surprising, said Günther Verheugen, speaking on behalf of the European Commission, that the impact of the financial crisis was being felt in the car market, which is particularly sensitive to consumer behaviour and is very important for the 12 million workers in the industry in the EU. He feared the situation would not improve in 2009, pointing out that this downturn in the industry would also be bad for the environment. If consumers do not buy new, more environmentally-friendly cars, the existing fleet would continue to pollute the atmosphere. The commissioner said that even if the industry came up with zero carbon cars, who could afford them? Verheugen said that the important thing now was to introduce clear legislation - manufacturers needed to know what was expected of them so they can plan and invest more money to satisfy the already highly bending safety legislation for cars in Europe. In this connection, he said there were low-interest loans available at the European Investment Bank for the makers of greener cars, adding that these loans needed to be increased and that the EIB was prepared to do this. Verheugen gave the example of OPEL in Germany whose problems were not to do with manufacturing or management but had arisen as a result of the crisis in the United States. He said special measures should be considered in the form of guarantees rather than subsidies. It is in nobody's interest to see a company disappear from the market which is also active in other countries of the EU, he explained, citing the far more serious problems facing Saab in Sweden and the obstacles now facing the planned manufacture of greener cars in Sweden.
Speaking for the EPP-ED, Italian MEP Vito Bonsignore said that one had to focus on research and not give way to newcomers like China and India. Speaking for the Socialist Group, Robert Goebbels of Luxembourg said that some countries, like the United States and the United Kingdom, had let industry decline by encouraging the service industry. How can one neglect cars?, asked Goebbels, pointing out that this form of individual transport was indispensable. He added that despite the politically correct calls for the encouragement of 'green' jobs, a United Nations study has shown that only 3% of jobs in the future will be green, and this provides one more reason, from Goebbels' perspective, to fight for an industry employing 2 million people directly in Europe and another 10 million indirectly. Green cars should be promoted, but that requires investment, tax breaks and other incentives, said German MEP Jorgo Chatzimakis on behalf of the liberals. For the GUE, Ilda Figuereido of Portugal called for exceptional emergency aid for the car industry, which is so important for Europe. (L.G./transl.fl)