The economic crisis has put the automotive sector under particular pressure. Properly targeted support is needed to help the industry and its workforce through the downturn and to address structural problems by making the sector more competitive and more in tune with the needs of the future. The European automotive industry has a strong future. Its export performance shows it can make the right products for a global market that will continue to grow.
Its workforce has the skills to maintain its technological edge. And it is already working to produce the new generation of motor vehicles needed for the low carbon age.
This communication sets out how the EU can bring policy levers into play to support the automotive industry. It represents a European framework for action: Different Member States will use different mixes of action to address the needs of manufacturers, suppliers, retailers and their workers. All can be most effective working with the confidence provided by a common EU framework.
The internal market has been a major cause of the vitality of the European automotive industry, the competitiveness of its manufacturing and the scale of its sales. It will be critical to the recovery phase. It is therefore essential that state aids and other measures are well directed, working to build the future strength of the industry rather than introducing short-term distortions that will damage long-term competitiveness.
That means cooperation and working upstream of national decisions to ensure they fit in well with the EU's overall ambitions. At the same time, the EU can offer a variety of other steps to build a platform to stabilise the industry and help it to recover. This includes measures to invest in strategic technologies. It includes steps to help workers whose jobs are at risk to retrain and find new work, as well as safeguarding and developing the key skills of some of the most valued technicians in Europe. It includes a determined and concerted effort to combat any move towards protectionism in global markets.
And of course, the industry will benefit directly from the core measures of the European Economic Recovery Plan to get credit moving again, as well as from specific measures like the European green cars initiative. This European framework for the automotive sector shows how the intelligent application of EU and national policies can not only offer a cushion for the automotive industry in a time of intense pressure, but a springboard for the future. The common goal is a dynamic, competitive and sustainable automotive sector in the EU for the coming decades. The particular situation of the automotive sector The automotive industry is central to Europe's prosperity.
The EU is the world's largest producer of motor vehicles, producing over 18 million vehicles a year and almost a third of the world's passenger cars.
It is a huge employer of skilled workforce, directly employing over 2 million people but responsible for some 12 million jobs. In addition, the sector plays a central part in tackling many of the key economic, social and environmental challenges faced by Europe today, such as sustainable mobility and safety. Automotive manufacturing is closely linked with many other sectors.
Electronics, mechanical and electrical engineering, information technology, steel, chemicals, plastics, metals and rubber are all key suppliers. It also has a very significant cross-border dimension in Europe and globally. Within the EU, the production lines are split between 16 Member States, and every single Member State is involved in the supply chain for manufacturing and the downstream chain for sales.
Any downturn in the automotive sector therefore strongly affects other sectors and all EU Member States. The current economic crisis is being marked by a sudden downturn for manufacturing.
EU industrial production slumped by 8. The difficult situation of the European automotive industry has three major reasons: First, there has been a sharp and uniform drop in demand for passenger and commercial vehicles both in the EU and worldwide. Tight credit conditions, declining share and asset prices, and the uncertainty created by the global economic environment are translating into very low consumer confidence and declining purchasing power.
New passenger car sales fell by 1. The producers of commercial vehicles were even harder hit with orders for heavy duty vehicles falling from The situation varies between individual Member States but the downturn has now reached every market in the EU, and all major producers on the European market are severely affected.kick-cocoa.info/components/kezeluxal/suv-come-capire-se.php
PDF Prescriptive Stretching
Second, parts of the automotive industry are reporting problems with access to credit financing and fears of liquidity shortages. Some companies are unable to get loans on reasonable terms, with credit ratings downgraded in light of market outlook. In addition, suppliers are expressing an additional concern about money not moving down the supply chain. The situation is particularly difficult for smaller lower-tier suppliers which are less capitalised and diversified than their larger counterparts. Third, the industry suffers from longer-term structural problems pre-dating the crisis.
Automotive companies already faced a very competitive business environment. High fixed costs, structural overcapacity and intensive price competition has meant that many automotive companies were already focusing on reducing costs and improving internal efficiency. There has also been significant consolidation in the supply sector. Globally, vehicle production capacity is currently at ca. The situation is aggravated by the rising risk of protectionism , threatening reduced access to third country markets for European producers who have thrived on the export market.
The first cases have come in the form of new import licensing requirements, e. Current forecasts for are not encouraging. This is likely to put further pressure on the whole automotive value chain particularly in terms of production volumes, capacity utilisation, employment and research investment.
Falling production levels and subsequent cost-cutting by automotive firms has already led to reductions in employment. Up to now it has mainly affected temporary workers. Negative employment effects could be magnified as a result of regional impacts because of the clustered and geographically concentrated nature of the automotive industry.
Additional pressure comes from potential spill-over effect from restructuring of GM and Chrysler. For example GM has announced that out of However, the long term global outlook for the automotive industry is promising: The imperative of a "greener" car fleet will bring new opportunities for innovative technology. And since the current decline in demand in mature markets such as Europe and U.
This makes it particularly important for the EU automotive industry to be able to weather the downturn and be ready to take advantage when demand returns. A key priority for the future is to ensure that European industry is able to respond to the current crisis and emerge from it in a stronger position to compete globally once market conditions improve. This will be notably the case if the automotive industry will master the triple challenge of technological leadership with an environmental and safety performance that is world class. The Recovery Plan emphasises the importance not only of addressing the causes of the current problems of the automotive sector, but doing so in a way which will secure and further reinforce the longer-term competitiveness of the industry.
Such an approach will in turn make a major contribution to make industry fit for the low-carbon economy and thus to achieving Europe's ambitions in reducing CO2 emissions and improving energy security. Primary responsibility for dealing with the crisis lies with industry , individual companies and their managements. Industry itself is called upon to address the structural problems of production efficiency and capacity utilisation in a way that improves its long-term competitiveness and sustainability.
In addition, as part of the overall industrial policy approach, the EU and its Member States can contribute to creating framework conditions in which industry can thrive. They can also promote fair competition in open global markets. This public support should preferably be covered by horizontal policy instruments applicable to industry as a whole and should be met through a combination of European and Member State level action.
At an informal meeting with Ministers on 16 January, Member States shared these views and agreed to a number of key principles to guide their responses to the current situation, such as the need for open global markets, fair competition, respect of better regulation as well as cooperation and transparency. It will be important to ensure that measures taken at Member State level be coherent, efficient and co-ordinated.
As much of the importance of the European automotive industry is derived from its knock-on impact for the broader EU economy, it is particularly important to ensure the proper functioning of the internal market, and retain competitive neutrality and a level playing field, thus also ensuring solidarity between the Member States.
An Investments interessiert?
In the European Economic Recovery Plan, the Commission has set out the key elements of the public support relevant for the automotive sector. Some of these measures are general, while others target specifically the automotive industry. The main objectives of the proposed approach are: While some progress has been achieved already, it is important to ensure that the objectives are fully met in an efficient and coherent way. In the current economic climate, a clear orientation towards long-term competitiveness, based on innovation, safety and environmental performance, is even more important.
The Commission therefore reconfirms its commitment to fully take into account the recommendations of the CARS 21 process see Annex 1 , fully respecting the principles of Better Regulation.
- Un printemps au Maryland (Nora Roberts) (French Edition)?
- Best of Chicago Songbook?
- The Real World of Democratic Theory?
- Cómo renuncié al MEJOR TRABAJO de mi vida (Spanish Edition);
The Commission will ensure that a coherent and co-ordinated forward-looking approach to future road transport and sustainable mobility requirements is adopted through the follow-up to CARS Given the impact of the current crisis the Commission will weigh up the costs and benefits of any new legislative initiative and seek, as far as possible, to avoid creating new economic burdens. Ensuring that the financial system starts operating properly remains the first priority in steering the economy towards recovery.
This is particularly important in the automotive sector, characterised by capital intensity and credit financed private demand.. The car industry will have to finance research and innovation in particular to design new engines that meet the ambitious European legislation on the reduction of CO2 emissions, starting from The new vehicles will also have to comply with stricter thresholds for pollutant emissions and tougher safety requirements.
Related Der erfolgreiche Verleger - So gründen sie ein erfolgreiches Verlagsgeschäft (German Edition)
Copyright 2019 - All Right Reserved