ACEA Paper

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Session 1 European competitiveness and
associations CARS 21 Ivan Hodac ACEA
Secretary General EuroConference  Competitivenes
s and Communication The role of EU
Associations  26 April 2006
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Regulation and Competitiveness

• Commission officially recognizes link between
  Regulation and Competitiveness
• Clearly, the competitiveness of the
  automotive industry depends on a coherent and
  cost-effective regulatory framework
• Progress is still to be made in reducing
  regulatory complexity and in designing
  regulations so as to meet their goals while
  taking into account possible conflicts between
  regulations, their cumulative impact and their
  external aspects.
• (European Competitiveness Report, 2004)

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CARS 21 Competitive Automotive Regulatory System
for 21st Century
Consultation Public Hearing EP Hearing
18 recommendations Legislative road map
High-level group
Sherpa Group
Subgroup Simplification
Subgroup Integrated Approach
Subgroup Fuels
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CARS 21 Composition (1)
High-Level Group 20 members
Commission, Member States, EP, Industry, Trade
Unions, NGOs, Users

• Commission
• G. Verheugen, Chairman (Vice-P, Commissioner DG
  Enterprise Industry)
• J. Barrot (Commissioner for Transport)
• S. Dimas (Commissioner for Environment)
• Member States
• W. Clement (G Federal Minister for Economy
  Employment)
• M. Beckett (UK Secretary of State for
  Environment, Food Rural Affairs)
• P. Devedjian (FR Minister-delegate for
  Industry)
• M. Jahn (CR Deputy Prime Minister)
• P. Lunardi (IT - Minister for Infrastructure
  Transport)
• European Parliament
• M. Harbour (EPP, UK)
• G. Duin (PSE, DE)

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CARS 21 Composition (2)

• Industry
• B. Pichetsrieder (ACEA President, CEO VW Group)
• L. Schweitzer (CEO Renault)
• L. Johansson (CEO AB Volvo Group)
• S. Marchionne (Fiat Group)
• L. Booth (CEO Ford of Europe)
• A. Batteux (President of CLEPA)
• W. Bonse-Geuking (President of EUROPIA)
• Trade Unions
• P. Scherrer (SG of European Metal Workers
  Federation)
• NGOs
• D. Baldock (Director of the Institute for
  European Environment Policy)
• Road users
• M. Mosley (Director General of FIA)

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ACEA Priorities for CARS 21
What were the main ACEA priorities for CARS 21?

• Enhance competitiveness of the European
  automobile industry through
• Improvement of the EU regulatory environment
• ? Avoid cumulative effect and negative
  interaction of policy proposals
• ? Create a stable, cost-effective and coherent
  regulatory framework
• Provision of better planning certainty for the
  industry
• Internal Market completion
• Improved market access (level playing field at
  global level!)
• Strengthened RD and innovation efforts
• Production of high quality products at a price
  affordable to the consumers

CARS 21 is a recognition by decision-makers that
regulatory issues do affect competitiveness!
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CARS 21 Main Results
CARS 21 is a joint recognition of the Industrys
competitiveness challenges and of the need to act
together to improve the EU automotive regulatory
environment. Main achievements include

• Endorsement of Better Regulation Principles
• ? Impact Assessment, Lead-time,Transparency,
  Consultation, etc.
• Legislation Simplification
• ? Replacement of 38 EU Directives by UNECE
  Regulations
• ? Introduction of self-testing virtual
  testing
• ? International Harmonisation (GTRs)
• Adoption of an Integrated Approach concept to
  tackle major societal considerations
• ? Integrated Approach to CO2 emissions
  reduction
• ? Integrated Approach to Road Safety
• Agreement to promote better market access in
  Third countries
• Agreement to strengthen RD and innovation
  efforts
• Adoption of a common 10 year roadmap for better
  planning certainty!

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CARS 21 Pending Concerns
CARS 21 triggered major progress. However,
recommendations alone are not sufficient !
Concrete implementation of the CARS 21 roadmap
is needed to trigger positive results for the
competitiveness of the industry and the EU
economy and society at large! In this context, 3
major concerns remain

• Implementation of Better Regulation principles !
  (e.g. Euro 5!)
• Contribution of other industry players road
  users !
• Commitment by Member States !
• ? Systematic resorting to the subsidiarity
  principle is not acceptable!
• Even less so if the concept of an Integrated
  Approach is to be implemented!

All stakeholders must play their role! Monitoring
of CARS 21 roadmap is crucial!
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ACEA Follow-Up

• Make sure that Better Regulation principles are
  effectively applied (not like in the Euro 5
  proposal)
• Implement Integrated Approach to CO2 emissions
  reduction and to road safety and ensure full
  involvement of all relevant stakeholders
• Swift action on trade complement multilateral
  with bilateral approach
• Obtain concrete support from EU Institutions and
  Members States
• Ensure that the CARS 21 roadmap is well respected
  and that all stakeholders deliver their share!

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Conclusions

• CARS 21 is first test case for new, holistic
  approach to sectoral regulation.
• CARS 21 results and competitiveness must become
  guiding principles of EU policy and be translated
  into concrete actions.
• Cars need to remain affordable.
• The EU needs to take into account the global
  dimension of
• automotive industry and future challenges
  (China, India).
• Only a competitive and healthy automotive
  industry can continue to innovate,
  provide employment, contribute to
• European economies and achieve public policy
  objectives.