Annexes to COM(2012)636 - CARS 2020: Action Plan for a competitive and sustainable automotive industry in Europe - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2012)636 - CARS 2020: Action Plan for a competitive and sustainable automotive industry in Europe. |
|---|---|
| document | COM(2012)636  |
| date | November 8, 2012 |
– pursue the dialogue with relevant stakeholders on a fuel labelling scheme consistent with the relevant European standards with a view to ensure that the consumer has easy-to-understand information about the compatibility of his/her vehicle with the different fuels offered at refuelling stations.
– monitor the implementation of the National Renewable Energy Action Plans, in particular the effective biofuel blending rates used in different Member States and the compatibility of fuels with vehicle technologies.
4.2. Improving market conditions
Maintaining an automotive manufacturing base in the EU can only be ensured if favourable business conditions are provided. For several of these conditions, such as labour law, this relies heavily on national policies. However, EU policy also has a clear influence on framework conditions, notably through regulatory policy. It remains a priority for the Commission to improve business conditions for industry in Europe by providing a reliable, predictable and favourable framework and to implement the principles of smart regulation, such as cost-effectiveness, lead times, long-term targets and stakeholder consultation.
A stronger internal market
A well-functioning internal market with a level playing field is a key contributor to a strong and prosperous European car industry in the long run. This is particularly true in the current difficult economic context, where manufacturers are under pressure to adapt capacity.
The European automotive industry represents a multitude of small and big companies, active in different parts of the distribution, supply and service chain. This enormous diversity is considered a strength and an asset for the future, as small companies today may deliver strategic innovation tomorrow and grow into major players. Therefore, it is important to foster constructive, transparent and respectful relations among the different actors in the automotive sector, including the repair, maintenance and customer service sector.
The changes in the competition law framework for the distribution of motor vehicles in Europe (further to the expiry of the Motor Vehicle Block Exemption Regulation 1400/2002) may have an impact on the organisation of the vertical relations between vehicle manufacturers and distributors. In order to manage this transition in a balanced way, a self-regulatory initiative is encouraged by the Commission. Furthermore, the Commission will continue to ensure the respect of EU rules on competition in the markets for the distribution of motor vehicles and for the provision of repair and maintenance services as well as the distribution of spare parts.
Another important objective of vehicle regulation is to strengthen the EU internal market for motor vehicles. One must recognise that today, while the regulatory requirements are identical throughout the EU, market conditions are very diverse in different Member States. The measures to influence demand, such as financial incentives, put in place to promote clean and energy efficient vehicles do not all follow the same approach. This fragmentation can be expected to reduce the potential for development and placing on the market of such vehicles. Therefore, stronger coordination of such measures is deemed necessary.
For consumers, the second hand car market is also important. A consumer market study will be carried out on the functioning of the second hand car market.
The Commission will:
– set up by 2013 a dialogue between stakeholders, encouraging them to work towards common principles on vertical agreements on the distribution of new vehicles. Stakeholders are invited to participate constructively in this dialogue, aiming at a balanced outcome.
– put forward in 2012 guidelines for financial incentives for clean and energy-efficient vehicles put in place by Member States in order to promote stronger coordination, to maximise their environmental effectiveness and limit the fragmentation of the market[24]. Such incentives should avoid being technology-specific, instead relying on objective and commonly available performance data, such as the CO2 emissions from the vehicle. Member States will be invited to take these guidelines duly into account when designing their incentive schemes.
Smart regulation
A healthy and dynamic internal market also needs appropriate regulation, which avoids unnecessary burdens for stakeholders and offers an investment-friendly climate. Automotive products are essentially regulated through the EU legislative framework for type-approval. Although this system seems to generally function in a satisfactory way, continuous evaluation remains necessary to identify ways of improvement. In particular, a revision of the procedures for the surveillance of the automotive products placed on the EU market is needed, in order to make sure that vehicles are safe and citizens can fully trust the regulatory framework put in place. This will contribute to establishing a level playing field among all actors and to increased trust of consumers in effective product regulation, while limiting administrative burdens.
The principles of smart regulation have been the key deliverable in the first CARS 21 exercise and they have been reaffirmed in the re-launched process. The Final CARS 21 Report furthermore stressed the importance of taking into account the current competitive pressure on costs, the cumulative effect of the legislation and the situation of SMEs. A comprehensive and consistent application of principles of smart regulation will be ensured, integrating an in-depth assessment of the impacts on industry, society and other stakeholders, notably the associated costs and benefits, considering also that the affordability of buying and owning a car is a fundamental pre-requisite so as to maintain a strong market. On that basis, the impact assessments for policy proposals relevant for the automotive industry, such as those referred to in other parts of this Communication, should systematically include also a competitiveness proofing exercise in order to determine the impact of new measures on the automotive industry. The application of these princples will ensure that the Commission proposals will be well-targeted and cost-effictive.
The Commission will:
– carry out an extensive and in-depth evaluation (fitness check) of the vehicle type-approval framework. In 2013, it will adopt a proposal to enhance the type-approval framework to include provisions for market surveillance in areas where a need has been identified, in order to ensure vehicles and their components are safe and compliant with relevant legal requirements, and that this framework effectively achieves the relevant policy objectives.
– within its impact assessment system, carry out a rigorous competitiveness proofing exercise for relevant major future initiatives, including those with a significant impact on the automotive industry. The competitiveness proofing will consider the economic situation and what impact a new initiative is likely to have on the industry's competitive position, especially on global markets. The future Free Trade Agreements, safety and emissions and other initiatives having a significant impact on vehicles will be subject to competitiveness proofing - in line with the operational guidance for assessing impacts on sectoral competitiveness within the Commission's impact assessment system[25], which also takes into account the broader, overall societal and economic impacts. These principles have been very recently reiterated in the updated Industrial Policy Communication.
– explore the possibility and added value of carrying out a proportionate economic analysis for some implementing acts, based on existing vehicle legislation, such as the proposals on the revision of evaporative emissions requirements for Euro 6 and anti-tampering measures for L-category vehicles (powered 2- and 3- wheelers and quadricycles). However, if these acts are expected to have significant impacts they will be accompanied by impact assessments in line with the Commission's Impact Assessment guidelines.
4.3. Enhancing competitiveness on global markets
The automotive industry is clearly global. Trade in automotive products is increasing steadily and third markets are becoming ever more important for the EU. The European automotive industry has a very strong position in international trade and clearly benefits from the market opportunities on both mature and emerging markets, which partly offsets the difficult situation in the European market. The current situation, cannot however be taken for granted. International competition intensifies rapidly with new entrants and the constant evolution of technology. At the same time, ensuring an open global market place remains a challenge - especially because of the existing and new non-tariff barriers (NTBs). While the industry strives to keep its competitive edge, the role of public policy is to ensure a level playing field in terms of market access. With that objective in mind, the CARS 21 Report advocates for action via trade policy in the broadest sense, including market access and regulatory harmonisation.
Trade policy
Thereis a need for trade and industrial policies to be closely coordinated.
Concerning the various trade instruments, Free Trade Agreements (FTA) are considered an important means to improve market access in third countries. The acceptance of international regulations under the 1958 UNECE Agreement[26] is the best way to remove non-tariff barriers to trade. There is also a need to strengthen bilateral regulatory cooperation with third countries, such as those which are not Contracting Parties to this agreement, with a view to eliminating non-tariff barriers in the automotive sector.
The Commission will:
– take full account of the importance of maintaining a strong and competitive automotive manufacturing base in Europe when conducting its trade policy, using both multilateral and bilateral tools. Both should be used to tackle the key issues of removing tariff and non-tariff barriers. FTAs should aim at full tariff dismantling and removal of Non-Tariff Barriers. The overall impacts of each trade negotiation will be assessed in a thorough and comprehensive way.
– assess the impacts of trade agreements as well as their cumulative impact on the competitiveness of this industry by launching a study into already concluded FTAs and those likely to be concluded in the near future. The study will be launched shortly by the Commission and concluded by the end of 2013. The results will be discussed with the relevant stakeholders.
– complement multilateral regulatory cooperation under the UNECE framework with bilateral regulatory cooperation in particular with key new players, but also with, for example, the United States - under the Transatlantic Economic Council - and with Japan.
International harmonisation
International harmonisation of vehicle regulations has been a priority for the Commission for many years. Agreeing common regulations with other major markets around the globe offers the benefit of lower compliance costs, generates economies of scale and reduces technical barriers to trade. The overall objective must be to establish the principle of "tested once, admitted everywhere", whilst ensuring the promotion and maintenance of the highest safety and environmental standards. The final CARS21 Report concludes that the most effective instrument for international regulatory harmonisation is the UNECE 1958 Agreement, provided it is modernised to accommodate the needs of emerging economies and to the extent that it enables the mutual recognition of international whole vehicle type approvals (IWVTA) starting with the category of passenger cars. The Commission is committed to carrying out several actions in the coming years.
The Commission will:
– promote and actively support further international harmonisation of vehicle regulations along the lines set out below. The reform of the 1958 UNECE Agreement is a key element of this strategy and will aim to make adoption and implementation of international regulations more attractive for third markets. Member States and stakeholders are invited to support this effort. The Commission will steer the development of a first proposal for the revised 1958 Agreement in March 2013.
– contribute to the development of a first proposal for a new Regulation[27] on IWVTA by November 2013. The IWVTA Regulation will substantially reduce the administrative burden related to the introduction of the same vehicle model in countries which are Contracting Parties to the 1958 Agreement.
In parallel to the work on the 1958 Agreement, the Commission will also work to obtain concrete results under the 1998 Agreement[28]. With the recent political momentum created by the EU-US High Level Working Group on Jobs and Growth and the Los Cabos statement[29] acknowledging the potential benefits of a comprehensive free trade agreement between the EU-US, there is more potential for keener engagement of the US and more successful work under the 1998 UNECE Agreement. The most promising areas of work are breakthrough technologies, notably hydrogen and electric powertrains. The Commission together with the US agencies has taken leadership in 2011 in the framework of the Transatlantic Economic Council to launch the work on electric vehicles. Consequently, two informal working groups were set up, the first on regulatory requirements for safety and the second on environmental performance of electric vehicles. The groups quickly attracted interest from many other contracting parties and have grown into multilateral fora under the 1998 Agreement. Concrete results should be available in the next few years.
The Commission will:
– steer the work of the two informal working groups on (1) safety and (2) environmental performance of electric vehicles with a view to agreeing a Global Technical Regulation (GTR) on the safety of electric vehicles in 2014 and a common approach in terms of policy on environmental performance of electric vehicles. Both informal working groups were launched on the initiative of both the EU and the US but have already attracted a broad membership, including Japan, China and Canada. The agreement on a GTR on electric vehicle safety will be of key importance so as to ensure economies of scale for manufacturers and reassure consumers on the adequate level of safety of electric vehicles.
– promote, based on input from stakeholders, stronger international cooperation between standardisers to achieve common or compatible standards on electric vehicle safety, infrastructure and interoperability.
4.4. Anticipating adaptation and managing restructuring
Economic and social parameters evolve over time, changing the competitive position of production locations. Companies, workers and economies that are quickest to adapt to the new situation are the ones gaining an advantage in the global marketplace. The strengths of the European economy are based on knowledge and excellence. This means that Europe needs to invest in its human capital and adapt its production capacities to the new realities, including new technologies and evolving markets. Public intervention should be targeted to help workers and companies carry out this adaptation, safeguard the internal market and a level playing field and ensure that the negative social consequences of any restructuring are kept to a minimum.
Human capital and skills
The investment in human capital via skills development and training is absolutely essential in order to keep a manufacturing base in Europe. The availability of a skilled workforce is a key factor for growth and competitiveness of the automotive industry and it will be indispensable in order to build up leadership in break-through technologies. On the other hand, industry is already faced with existing qualified labour shortages and the need to correctly identify the skills needed in the future. Appropriate qualifications for workers, as well as vocational training and life-long learning have to be ensured.
Skill shortage is a critical issue. Quick actions with long-term goals are needed at the national level to fundamentally modernise education and training systems in order to upgrade the supply of skills, through, inter alia, new curricula, opening up education and training through ICTs and new forms of partnership with employers. At the European level, this problem relates not only to the automotive sector but to other sectors as well. The Commission will shortly outline a set of strategic priorities for addressing these issues in its communication on "Rethinking Education: Investing in skills for better socio-economic outcomes". As a horizontal issue it is also tackled within Europe's employment policy, notably by the recent Employment Package[30]. In addition, the following sectoral initiatives will be of key importance. Given the changes in skill needs witnessed in the EU labour market a complementary solution to the shortages could be also to attract the necessary skills from outside the Union.
The Commission will:
– following the recently completed feasibility and added value assessments, support in 2013 the creation of a European Automotive Skills Council[31], which will bring together existing national organisations conducting research on skills development and employment in the automotive sector. The Skills Council will also involve employers’ and workers’ representatives at European and national levels and education and training providers' organisations. The Skills Council will encourage peer learning based on the exchange of information and good practice as well as providing a platform for dialogue. It will start by analysing trends in automotive employment and skills, which will form the basis of recommendations aimed at policymakers, education, training providers and other stakeholders.
– encourage the use of European Social Fund (ESF) for workers' retraining and re-skilling. Without prejudice to the decisions that will be taken in the Multi Annual Financial Framework on the ESF, Member States will be encouraged to make more use of the systemic projects addressing skills needs, skills matching and anticipation of change and propose life-long learning opportunities.
Dealing with industrial adjustment
While on the one hand, the automotive industry faces the problem of availability of a qualified workforce, on the other hand there is a need to deal with the social consequences of restructuring, when job losses are unavoidable. Some restructuring decisions have already taken place reflecting declining sales on the European market and more adjustments may be necessary. It is of the utmost importance to avoid a situation in which plant closures or downsizing provoke a ripple effect throughout the regional economy because of redundancies. Companies have to observe the EU Directives on collective redundancies and information and consultation of workers as well as the good practice of anticipating change[32]. In this regard, good social dialogue at all levels (company, local, national and EU levels) is a key element in the anticipation and good management of restructuring processes. The restructuring process is mainly the responsibility of the industry, yet there is a complementary role for the Commission, Member States and local authorities.
The Commission adopted early 2012 a Green Paper on restructuring with the aim to identify successful practices and policies in the field of restructuring and adaptation to change[33].
The Commission has also proposed to continue the European Globalisation Adjustment Fund (EGF) over the period 2014-2020, improve its functioning and to expand its scope, in particular to new categories of workers (e.g. temporary workers). Until now, the EGF has provided support in 16 cases in the automotive sectors and almost 21 000 automotive workers have been targeted by EGF assistance worth EUR 113 million.
The Commission will:
– continue to monitor/review restructuring activities as regards to their strict compliance with EU legislation, in particular concerning state aid and internal market rules.
– identify good practice and promote an anticipative approach in restructuring in consultation with representatives of the automotive-intensive regions, employment authorities and the sector's stakeholders, including the social partners.
– re-launch the inter-service task force to study and follow up the main cases of automotive plant closures or significant downsizing. The task force has been active and highly efficient in past cases in the automotive industry[34]. The task force would streamline the use of the relevant EU Funds (by providing technical assistance, reducing waiting time, advising on the most effective use of resources, monitoring and reporting).
– for the cases of plant closures and significant downsizing, invite the Member States to consider using the European Globalisation Adjustment Fund (EGF).
– encourage Member States to make use of labour flexibility schemes and their co-financing by ESF in support of the suppliers who might need additional time to find new clients following a closure/downsizing of an automotive plant.
5. Monitoring and governance
The constructive discussions in the CARS 21 High Level Group have highlighted the usefulness and the need to continue the dialogue among major stakeholders (from both the private and the public sector, as well as from civil society) in this strategic industrial sector. In addition, the updated Industrial Policy Communication called for the creation of a Task Force for clean vehicles.
The Commission proposes to launch the CARS 2020 process to monitor and take stock on a regular basis of the implementation of the CARS 21 recommendations and the Action Plan. This process would entail an informal annual high-level meeting, prepared by a Sherpa group. In order to ensure coherence and continuity, the composition of this group would remain similar to the one of CARS 21, without prejudice to possible adaptations.
Also, dedicated meetings at expert level could be set up on an ad-hoc basis with a view to enhancing the knowledge base of the Commission and broaden stakeholder consultation.
The Commission will:
– set up in 2013 a high-level process called CARS 2020, in order to monitor the implementation of the CARS 21 recommendations, as well as the measures set out in this Action Plan.
– organise ad–hoc expert meetings on economic and competitiveness issues for the automotive sector.
It will be up to the new College to consider whether this process should be maintained in its proposed format, or whether adjustments or adaptations may be necessary.
[1] The term automotive industry is meant to cover the entire supply chain, covering vehicle manufacturers, suppliers, distribution and after-market services. Products include passenger cars, light- and heavy-duty commercial vehicles and powered two-wheelers, three-wheelers and quadricycles.
[2] COM (2012) 582 final, adopted on 10 October 2012
[3] COM(2010)186 final, 28.04.2010
[4] Available on http://ec.europa.eu/enterprise/sectors/automotive/files/cars-21-final-report-2012_en.pdf
[5] including battery electric, plugin hybrid and extended range electric vehicles
[6] Precise data on overcapacity are subject to discussion, as it depends among others on the number of shifts used in a given factory. Analysts agree that some overcapacity is actually needed for business flexibility, but that excess capacity is problematic.
[7] COM (2011) 808 final, 30.11.2011, COM (2011) 809 final,30.11.2011.
[8] COM (2011) 834 final, 30.11.2011
[9] COM (2012) 501
[10] COM (2011) 144 final
[11] http://setis.ec.europa.eu/
[12] European Institute of Innovation and Technology
[13] Knowledge and Innovation Communities
[14] COM(2010) 614
[15] ELENA (European Local ENergy Assistance) technical assistance facility for projects on sustainable energy in towns and regions.
[16] COM (2007) 19 final
[17] COM/2012/393 and COM/2012/394
[18] COM(2012)393 final
[19] COM/2011/856 final
[20] COM (2010) 389 final
[21] Idem.
[22] Integrating emissions generated over the life-cycle of the fuel, including extraction, production and actual use
[23] The study will give an insight on whether consumers are able to make informed purchasing decisions including issues related to understanding and transparency of information, for example understanding of information on labels, understanding of differences between fuels and understanding of suitability of fuels for cars. The results will be published by end 2013.
[24] Measures constituting State aid will continue to be assessed under the relevant State aid rules.
[25] Staff Working Paper SEC(2012)91 final, 27.01.2012
[26] The 1958 Agreement of the United Nations Economic Commission for Europe (UNECE) on international technical harmonisation in the motor vehicle sector
[27] According to the established principles of the 58 Agreement, Contracting Parties applying the most stringent version of the IWVTA Regulation will not have to accept type-approvals issued according to a less stringent version.
[28] In the framework of 1998 Agreement Global Technical Regulations are developed.
[29] MEMO/12/462, 19.06.2012
[30] COM(2012) 173 final, 18.04.2012
[31] Project run by the social partners and supported by the European Commission / DG Employment, Social Affairs and Equal Opportunities
[32] These good practices notably include the text of 2003 entitled "Orientations for reference in managing change and its social consequences" which, however, was not formally adopted by ETUC.
[33] COM(2012) 7 final
[34] For example, the cases concerning VW Forest and MG Rover in West Midlands;