CARS 21 Mid-term review

Background

Three years ago, in January 2005, EU Commissioner Guenther Verheugen, responsible for Industry policy, launched the Competitive Automotive Regulatory System for the 21^st Century (CARS 21), a new European Commission initiative to boost the competitiveness of the European car industry.

To coordinate the work of the CARS 21 initiative, a High Level Group was set up to generate recommendations to improve the worldwide competitiveness of the European automotive industry, to make, as Verheugen said “life easier for the industry by simplifying of the car type approval in the EU through the increasing application of United Nations rules”.

Right from the start CLEPA has been committed to this initiative, so much so, that CLEPA President Armand Batteux was part of the original members of the High Level Group, followed up by President Giuliano Zucco.

The group is chaired by Günter Verheugen, the Vice-President of the European Commission, responsible for Enterprise and Industry, other members include the Commissioners for Transport and Environment, no less than five senior representatives from Member States, two Members of the European Parliament, CEO’s from Ford, the Volvo Group, Fiat and Renault as well as representatives from Trade Unions, NGOs and End Users.

Already at the end of that year CARS 21 adopted its final report and a roadmap identifying the public policy measures for the next ten years.

The CARS 21 High Level Group Final report contained 18 recommendations aimed at increasing the worldwide competitiveness of the EU automotive industry and maximising the benefits for European society and industry through the development of a comprehensive regulatory approach to the automotive sector.  These inputs were then integrated into the Commission Communication on a Competitive Automotive Regulatory Framework that tried for the first time to create an integrated approach across different policy areas interacting with the automotive industry. 

The way forward

Commission Vice-President Verheugen decided, before a new European Commission takes office in 2009, to evaluate the progress made during his term of office, assessing the state of play and considering whether any changes may be necessary to the existing regulatory framework in the light of the experience and developments since the original CARS 21 High Level Group. In light of this, the Commission decided to conduct a mid-term review, once again consulting with stakeholders, seeking our input as part of the CARS 21 stock-taking and review process.

On 29 October 2008 the Members of the CARS 21 mid-term review presented their report including 16 unanimously-adopted recommendations.

The report comes at a time of unforeseen and unparalleled economic difficulties for EU economies and the automotive sector. The current economic situation is therefore having an adverse impact on the sales of new vehicles in Europe, further complicating the situation with regard to manufacturing capacity utilisation. Lower sales and an unfavourable economic environment in turn translate into reduced margins and profitability, putting pressure on employment and limiting the possibility of increasing R&D budgets.

In respect to the 16 identified recommendations, CLEPA would like to make the following four observations:

- On the application of Better Regulation principles, CLEPA recognizes that efforts are to be made to implement these principles for the automotive sector law-making in terms of content and process.

- Another area impacting on the future competitiveness of the automotive industry are CO2 emissions’ standards and Eco-Innovation. The application of an integrated approach to CO2 reduction should be continued while cost-effectiveness, sufficient lead time and regulatory predictability should form a core part of implementing such an approach. CLEPA sees Eco-Innovations as a tool for reducing CO2 emissions from vehicles and for measuring real-life emissions, as well as promoting innovation and setting a framework supportive of EU leadership in environmental technologies.

- On the Motor Vehicle Block Exemption Regulation, CLEPA supports the Commission’s work, acknowledging the need to maintain sound and fair competition in the automotive distribution and repair market for the benefit of consumers. CLEPA believes that in order to ensure maximum consumer benefits, effective competition should be maintained in servicing and repair markets and holds that access to repair information should be available as required to multi-brand workshops, publishers, road assistance providers and manufacturers of diagnostic tools. Future decisions regarding the BER should be based on the rigorous application of better regulation principles and maintaining legal certainty and effective competition.

- On Trade, CLEPA supports the principle of increased liberalization and improved market access to third-country economies with a focus on the elimination of NTBs (Non-Tariff Barriers) in such countries.

CLEPA reaffirms its commitment to the work of the CARS 21 High Level Group and the mid-term review and would like to stress that, as with all Community legislation, a lead time and a predictable regulatory framework are essential to improve the future competitiveness of the automotive industry.

For more information:

European Commission: DG Enterprise website
European Commission: CARS 21 Mid-Term Review High Level Conference - Conclusions and Report (29.10.2008)
European Commission: EC Communication (07.02.2007)
European Commission: Impact Assesment and Impact Summary (22.03.2007)

CLEPA Position: CLEPA Press Release on CARS 21 High Level Conference (29.10.2008)