ECOS-V-038
18th Commission meeting, 23 April 2013
WORKING DOCUMENT
of the
Commission for Economic and Social Policy
CARS 2020: Action Plan for a competitive and sustainable automotive
industry in Europe
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Rapporteur: Christian Buchmann (AT/EPP)
Styrian regional government minister
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This document will be discussed at the meeting of the Commission for Economic and Social Policy
to be held from 11 a.m. to 6 p.m. on Thursday, 23 April 2013 in Brussels.
DOCUMENT SUBMITTED FOR TRANSLATION: 14 March 2013
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EN
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Reference document
Communication from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions on CARS 2020: Action Plan for a
competitive and sustainable automotive industry in Europe
COM(2012) 636 final
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This working document serves as the basis for discussions on the European Commission's
Communication entitled "CARS 2020: Action Plan for a competitive and sustainable
automotive industry in Europe". The results will feed into the Committee of the Regions' draft
opinion on the subject.
The Committee of the Regions has already issued a number of opinions relating to specific and
general aspects of this issue, and these have been taken into consideration here as much as
possible. I should like to make specific reference to the draft opinion on the Commission
Communication entitled "A stronger European industry for growth and economic recovery",
adopted at the ECOS commission meeting on 20 February 2013.
The automotive industry is a key part of European industry. Many of the remarks made in the
aforementioned draft opinion therefore also apply to the automotive industry. In this working
document an attempt has been made to go into aspects specific to this branch of industry.
I.
CURRENT SITUATION IN THE AUTOMOTIVE INDUSTRY
Situation in the European automotive industry
Since the crisis years of 2008/2009, the situation in the automotive industry in Europe has stabilised
somewhat, as demonstrated by the figures for new vehicle orders1. It has not yet been possible to get
back to pre-crisis levels, however. On the whole, the automotive industry in Europe is facing difficult
times. While markets outside Europe such as those in the BRIC countries are booming, European
demand for vehicles is stagnating, as shown by trends in new registrations for passenger vehicles. The
number of newly registered vehicles fell in January 2013 by 8.7% to 885 159, the lowest January level
since records began2.In the USA, however, demand has been able to recover clearly after the crisis,
and in 2012 the highest sales since 2007 were recorded, with a total of 14.4 million vehicles being
registered3.
Only a few European manufacturers have been able to benefit significantly from the potential on
foreign markets. While PSA Peugeot Citroen, Ford and Fiat are making substantial losses, premium
companies such as BMW, Audi and Daimler have seen significant increases in their sales figures.
This optimistic outlook therefore only applies to the premium slice of the market. For mass producers
who have hitherto sold their small and medium-sized cars primarily in Europe, the economic situation
is becoming increasingly difficult. There are no expectations that the situation will improve over the
1
2
Data from the economic report by the Institut für Wirtschaftsanalyse und Kommunikation (Institute for Economic Analysis and
Communication), Dr. Helmut Becker; 19 February 2013, p. 8.
Data from ACEA – European Automobile Manufacturers' Association:
http://www.acea.be/index.php/news/news_detail/passenger_car_registrations_-8.7_in_january_2013 [21.02.2013].
3
http://www.gtai.de/GTAI/Navigation/DE/Trade/maerkte,did=764914.html [21.02.2013].
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-3coming three years, leading to job losses and plant closures. Renault is shedding around 7 500 jobs in
France between now and the end of 2016, i.e. 14% of its total French workforce4.
As a whole, the automotive industry has an important strategic role to play in the European economy.
Around 12 million jobs are directly and indirectly linked to the automotive industry in Europe. The
business of numerous component supply companies - above all small and medium-sized firms - is
closely tied in with the success of European OEMs (original equipment manufacturers). Moreover, the
automotive industry is a driving force behind new developments. This sector of industry has
registered the highest levels of private spending on research and innovation, at around EUR 28 billion
in 2009. With a view to the much hoped-for new industrial revolution in Europe, developments in the
automotive industry will play a significant role.
II.
THE EUROPEAN COMMISSION'S APPROACH
The European automotive industry was already facing major challenges in 2005, and for this reason
the European Commission set up a high-level group of experts entitled CARS 21 (Competitive
Automotive Regulatory System for the 21st century). The recommendations and guidelines drawn up
at that time now need to be reworked in view of the present-day developments described above.
In drafting the CARS 2020 communication, representatives from industry, trade unions and
environmental bodies, and also from several Member States, the European Economic and Social
Committee and the Committee of the Regions were involved.
The action plan now being put forward sets out concrete measures in four areas:
1.
2.
3.
4.
Investing in advanced technologies and financing innovation
Improving market conditions
Enhancing competitiveness on global markets
Anticipating adaptation and managing restructuring.
Without going into the proposed measures in detail, they can be summarised as follows:
1.
Investing in advanced technologies and financing innovation
Key elements are Horizon 2020, the COSME Programme (Competitiveness of Enterprises and
SMEs), the development of a "European transport technology strategy" and the implementation of a
European "Strategic Energy Technology Plan" (SET Plan).
A European initiative for green vehicles is to be drawn up and SMEs' access to financial resources
through EIB financing is to be improved.
4
http://derstandard.at/1356427844779/Radikaler-Stellenabbau-bei-Renault [21.02.2013].
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-4Lastly, policy initiatives and also legislative measures are to tackle issues such as the reduction of
CO2 emissions, pollutant and noise emissions, road safety, alternative fuels and infrastructure.
2.
Improving market conditions
This discusses optimising the internal market in relation to problems in the automotive sector. It
includes smart regulation using yardsticks based on cost efficiency and targeted measures.
3.
Enhancing competitiveness on global markets
Trade and industrial policies must be closely coordinated. One declared aim is the removal of tariff
and non-tariff barriers to trade and the full dismantling of tariffs as part of free trade agreements.
Moreover, international harmonisation is an important factor for improving access to global markets.
4.
Anticipating adaptation and managing restructuring.
Skills shortages are a major problem. The European Commission will therefore support the social
partners' project of setting up a European Automotive Skills Council. Greater use of the European
Social Fund is to be made here.
Accompanying measures and the study and monitoring of automotive industry restructuring measures
are proposed.
III.
SUBJECTS FOR FURTHER DISCUSSION
In its CARS 2020 communication, the Commission gives an overarching view of the future of the
automotive industry. This is essentially to be welcomed. An in-depth analysis of the document reveals
that a few points should be examined in much greater depth:
1.
2.
3.
4.
5.
6.
1.
The role of local and regional authorities
Investment in R&D – the role of SMEs
An integrated approach to mobility
Sustainable materials and recycling
Alternative fuels and the necessary infrastructure
Skills - labour market.
The role of local and regional authorities
Regional and local authorities, depending on the competences assigned to them within each country,
have numerous possibilities for playing an active, supportive role here.
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-5These authorities can create the conditions needed for providing firms with support for investment.
There is a broad range of possibilities for doing so, from financial support to the establishment of
business and innovation parks. The current debate on aid for restructuring measures has to be viewed
in this context.
There are innovative solutions to be found for public procurement as well. E-mobility can be given
special support through public investment, particularly in urban areas (switching over to fleets of
electric vehicles).
Authorisation procedures for investment and infrastructure plans should be carried out speedily and in
a targeted fashion. There are many success stories from regions and municipalities where new ground
has been broken with a mixture of promotion of electric vehicles, parking space management, and
infrastructure (electric charging stations).
Moreover, optimal use of potential resources by local and regional authorities, such as structural
funds, should be a key element. At the same time, the European Commission should not nip emerging
economic momentum in the bud through excessive use of competition rules.
2.
Investment in R&D – the role of SMEs
The European Commission has quite rightly recognised that investment in research and development
has a key role to play for the future development of the European automotive industry.
SMEs in particular have an important role to play in this industry as innovators in component
manufacturing. The European aid referred to in CARS 2020 would be extremely important here.
Experience from research framework programmes over the last few years has demonstrated that,
despite the European Commission's efforts to secure improvements, SMEs still experience major
difficulties in accessing support funds. There is still far too much red tape, as well as long lead times
and above all low success rates because the budget allocated to the programmes is too small; these
cause the greatest problems. There are similar bureaucratic obstacles with structural fund
programmes.
The level of funds currently earmarked for the Horizon programme does not give any grounds for
hope. SMEs are "speedboats" and not "tankers" and need shorter-term financing possibilities. The
question arises as to how to tailor support for SMEs also, given their specific requirements.
3.
Integrated approach to mobility
Mobility is becoming increasingly complex and means of transport more and more diversified.
Forecasting analysts expect that cars will lose importance in the next few years as an individual means
of transport, in view of the increase in urban population. This trend "from ownership to use" of means
of transport should be managed proactively and turned to good use for both firms and employees.
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In some regions, "car clusters" are being developed into "mobility clusters", by involving rail systems
and air travel and even bicycles – in particular e-bikes and bicycles with ancillary electric motors
(pedelecs). Through diversification, it has been possible to maintain capacity utilisation, even in times
of crisis. This trend can be encouraged, particularly through synergies in innovation and technology.
4.
Sustainable materials and recycling
EU Directive 2000/53/EC of 18 September 2000 set us on the right track for the future: as of 2015,
95% of a car's weight in materials will have to be recycled. Thus resource consumption can be cut
back by using recovered resources, and dependence on raw material imports can be reduced. At the
same time, process-oriented recycling is becoming the basis for a continuous process of adding value
and is creating skilled jobs in the regions of Europe.
An approach to life cycle consistent with the above objectives therefore already begins with vehicle
design, also covers all the environmentally relevant effects in the production process, and naturally
includes the operational phase and, at the end, recycling and/or processing for subsequent re-use as
well.
This comprehensive approach above all creates great opportunities in developing new sustainable
materials and helps meet the CO2 targets enshrined in the EU 2020 strategy.
At the end of their product life cycle, more than 75% of old vehicles end up in regions outside Europe
and Europe thus loses resource potential and, in order to build new cars, has to use new primary
resources, which need to be bought from Asia. Recycling on the other hand creates new jobs in
Europe and reduces dependence on raw material suppliers.
Joint efforts should be undertaken to do more to make use of old vehicles as resources. The aim
should be to create clear rules on recycling obligations and to push for the development of sustainable
materials.
5.
Alternative fuels and the necessary infrastructure
The EU has set itself the aim of generating 20% of energy production from renewable energies by the
year 2020. In addition to this energy mix, further measures are especially important, such as energy
efficiency and the creation of a corresponding energy infrastructure. At present, the USA benefits
from the clear energy cost advantage of using shale gas as an energy resource. The effect this has been
that investment amounting to approximately EUR 30 billion per annum has shifted from European
industry to American industry. Europe absolutely must take effective counter measures here.
We must push ahead with and support procedures and technologies for storing electrical energy from
renewable sources. In this way the biggest brake on electro-mobility - the insufficient range of pure evehicles - can be removed.
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Alongside battery energy storage technology, hydrogen generation and storage will be key issues for
the future in relation to the EU 2020 strategy. Many car manufacturers are already looking into the
possibilities offered by hydrogen energy storage and fuel cells. This provides an alternative to emobility without any concerns about range. However, an extensive re-fuelling infrastructure is
lacking. The EU should do more to tackle this challenge.
Together, therefore, efforts should be made to push ahead with alternative fuels and to create the
infrastructure needed for them. At the same time, the whole energy balance, including the energy
consumption involved in fuel production, should be taken into account when regulating the use of
alternative fuels from renewable resources.
6.
Skills
The CARS 2020 communication examines in detail Europe's problems in relation to education and
training, demographic change, the skills shortage and the noticeable lack of young graduates with
technical degrees.
In this connection the question arises as to sensible use of ESF resources and the future role of the
Globalisation Fund. It is up to the Member States to plan the use of ESF resources. In so doing they
can ensure that the specific development requirements of the region concerned can be taken into
consideration.
One issue to which not enough attention has been paid in my opinion concerns targeted measures to
make technical professions more attractive to women. Across Europe fewer than 10% of graduates
with technical degrees are women. Experience in individual regions has shown that, especially in
R&D, women have a particularly valuable awareness that is greatly valued in automobile design.
Moreover, constituting more than 50% of buyers on this market, women represent the largest segment
of buyers.
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