Session 1:

European competitiveness and associations

CARS 21

Ivan Hodac

ACEA Secretary General

EuroConference

« Competitiveness and Communication – The role of EU Associations »

26 April 2006

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)

CARS 21Competitive Automotive Regulatory System for 21st Century

High-level group

Sherpa Group

Subgroup Simplification

SubgroupIntegrated Approach

Subgroup Fuels

Consultation

Public Hearing

EP Hearing

18 recommendations

Legislative road map

CARS 21 – Composition (1)

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)

High-Level Group = 20 members:

Commission, Member States, EP, Industry, Trade Unions, NGOs, Users

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)

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 R&D 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!

What were the main ACEA priorities for CARS 21?

CARS 21: Main Results

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 R&D and innovation efforts

Adoption of a common 10 year roadmap for better planning certainty!

CARS 21 is a joint recognition of the Industry’s competitiveness challenges and of the need to act together to improve the EU automotive regulatory environment.

Main achievements include:

CARS 21: Pending Concerns

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!

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:

All stakeholders must play their role!

Monitoring of CARS 21 roadmap is crucial!

• 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!

ACEA Follow-Up

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.