Category: Automotive Industry

News about Automotive Industry

Environment committee underestimates progress in decarbonisation of transport

adminafia Leave a comment

The environment committee of the European Parliament calls for stricter CO2 targets for passenger cars and vans than proposed by the European Commission and a threshold in addition to incentives for sales of low and zero emission vehicles. These are key outcomes of a vote in the committee last night.

in CLEPA, 11-09-2018

“Automotive suppliers fully support the objective of reducing emissions and are proud to deliver the technology to achieve it. However, the sector calls for realistically ambitious targets to best support the transformation that is unmistakably underway”, says Sigrid de Vries, Secretary General of CLEPA, the association of the automotive supplier’s industry.

Yesterday’s vote stands in contrast to earlier votes in the committees for transport and industry, where majorities of members confirmed targets as proposed by the European Commission. “The position of the environment committee therefore does not reflect the entire spectrum of opinions in the European Parliament. We hope that the members of the Parliament will come to a more balanced position in the plenary session in October”, says De Vries.

“A key requirement is to reduce emissions in the most efficient, technology-open as well as least disruptive way when it comes to jobs and structural change”, she adds. “Electrification is a major part of the solution. Industry assesses that the 30% reduction target proposed by the Commission will trigger a share of electric and electrified vehicles including mild hybrids, plug-in hybrids, fuel cell and battery-electric solutions of at least 60%, and very possibly much higher than that as technologies will increasingly be combined to meet emission targets as well as serve a broad variety of transport needs in a tailored way. Today, this percentage remains in the low single digit range. Major investments are therefore being made and will continue at a fast pace.”

The environment committee voted in favour of compromise amendments proposed by the rapporteur, which call for a reduction of emissions by 20% and 45% respectively by 2025 and 2030 as opposed to 15% and 30% proposed by the Commission. The committee also calls for a “malus”, a penalty for manufacturers which fail to achieve a benchmark of electric vehicles as a proportion of their overall sales. “This is counter the principle of technology neutrality”, says De Vries.

Furthermore, the committee calls on the Commission to develop a methodology for the life-cycle analysis of embedded emissions in fuel and energy production as well as the construction of the vehicle and parts. “Making the step further towards well-to-wheel or life-cycle analysis is important to level the playing field between combustion engines and electric vehicles. Automotive suppliers have long been arguing in favour of a well-to-wheel approach”, says De Vries.

The next step is the vote in the Plenary, likely at the beginning of October. Members of the European Parliament will now have the opportunity to propose amendments to complement the position of the environment committee. Member States’ governments are expected to finalise their position in October as well. Once both institutions have adopted their respective positions, tripartite negotiations will resume with the aim of amending and adopting the legislation.

 

 

US president announces revised trade deal between US and Mexico

adminafia Leave a comment

On  27th August, U.S. President Donald Trump announced a common accord between the US and Mexico on key trade terms – a replacement  of the existing 25-year-old North American Free Trade Agreement, which Mr. Trump has   pointed towards  for a decline in US manufacturing jobs.

in CLEPA, 29-08-2018

Negotiators have been rewriting the NAFTA treaty over the past year, but in the past five weeks, Canada has not been part of the discussions.

 

The deal struck between the US and Mexico must be read in the global trading context and especially in light of the US import duties on steel (25%) and aluminum (10%), which the US has imposed on Canada, China, Turkey, (albeit EU is enjoying temporary tariff relief).

 

The specific requirements lay down stringent conditions for the import of products, (vehicles and automotive component parts, alike) from Mexico including:

  • Automotive manufacturing: to receive complete tariff free treatment or almost (possibly at around 2.5%), the new deal would require that 75% of the parts in any car sold in U.S. and Mexico would be produced in those countries. Currently, about 62.5% of parts are required to be produced in the US, Mexico and Canada. However, it is not known, at this stage, what the tariffs may amount to if the required local content of 75% is not reached.
  • Higher labour standards: the new deal would require that 40% to 45% of auto parts in cars sold in the U.S. and Mexico are made by workers earning at least 16 USD per hour (aimed at discouraging firms from locating in lower-wage Mexico).
  • Provisions to govern Intellectual Property, digital trade and investor disputes.
  • The pact will expire in 16 years’ time, it is to be reviewed every six years.

 

The 75% local content requirement is already considered as being challenging to fulfil, in particular because large parts of the automotive supply industry use metal resources in their production, sourced from elsewhere. The costs of metal products will increase and, ultimately, it will be the end-consumer who will pay the price.

 

CLEPA is looking more deeply into the full impact of the EU-Mexico deal, (as it currently stands), taking into account the increased costs, the revision of the EU-Mexico FTA and the provisions of the EU-Canada FTA.

 

MEMA, the North American Motor & Equipment Manufacturers Association, has been advocating for a positive renegotiation of the North American Free Trade Agreement. They highlight the importance on the progress made by the Trump Administration and the Mexican government, but they encourage a renewed focus on a three-party agreement that includes Canada.

They also warn that the potential cap of Mexican motor vehicle parts exports into the U.S. may serve to decrease American manufacturing jobs and exports and put U.S. businesses at a global disadvantage — all while increasing costs to consumers.

 

Casting doubt on Canada’s inclusion, Mr Trump said: “We will see whether or not we decide to put up Canada or just do a separate deal with Canada”. He also stated that he wanted to get rid of the name NAFTA, as it has “bad connotations”.

Canadian Prime Minister Justin Trudeau’s office published a note saying that both leaders  “had a constructive conversation” and “look forward to having their teams engage this week with a view to a successful conclusion of negotiations.”

The next steps foresee a deal to be taken before the newly elected Mexican President, Mr. Lopez Obrador, who takes office in December 2018. In order to meet that deadline, the Trump Administration must present the U.S. Congress with a deal at least 90 days in advance, i.e. Friday, 31 August.

Mr. Obrador has said that a two-way agreement with the US was just the first step in, expressing interest “in remaining a three-country deal”. In which case, all three legislatures would have the final say over the trade pacts.

 

Background:

  • The North American Free Trade Agreement covers more than $1tr (£780bn) in annual trade.
  • NB the U.S. has threatened to place tariffs on vehicles and automotive parts on cars imported from Europe, Canada and Asia. The outcome of the US Section 232 investigation is still pending.
  • The United States’s imposition of tariffs on metals, as mentioned above, has prompted global countermeasures, with retaliatory measures on US goods coming from Mexico, Canada, EU, China, India and Turkey.
  • The US has also imposed tariffs on $50 billion worth of Chinese imports, as punishment for alleged Chinese technology transfer. China is levying retaliatory tariffs on 50billion USD worth of US imports..

 

 

Source: CLEPA, MEMA

 

 

Positive and constructive dialogue in transatlantic trade

adminafia Leave a comment

European Commission President Jean-Claude Junker and U.S. President Donald Trump agreed yesterday to work towards strengthening the bilateral trade relationship, including the elimination of tariffs as well as reducing non-tariff barriers to trade and subsidies.

in CLEPA, 26-07-2018

Roberto Vavassori, President of CLEPA, the European automotive supplier’s association comments positively on the results of the meeting:

“It is very positive to see the U.S. and EU talking constructively again. The comments by Presidents Trump and Juncker are promising, specifically that both sides agree to hold off further tariffs and to reassess existing tariffs on steel and aluminium in the context of negotiations. The words from President Trump about resolving the steel and aluminium tariff and the retaliation of tariff are of special importance for our industry.

The announced dialogue on standards would be crucially important for the automotive industry where high standards of vehicle safety, environmental performance must be maintained, supported by convergence between our two different regulatory systems. CLEPA positively encourages both sides to revisit the chapters already included in transatlantic trade negotiations, including existing tariffs on cars and car parts.

It is important to note that even a reform of the WTO seems to back on the agenda. Challenges such as intellectual property theft, industrial subsidies and the conduct of state-owned enterprises are best dealt with in the framework of multilateral rules.

The EU and the U.S. combined are the most important markets in the world and of crucial importance to the automotive industry. We have always supported talks to facilitate trade between the two partners and will continue doing so. We hope that the meeting between President Trump and President Juncker marks the start of a renewed and lasting dialogue and constructive negotiations.”

CLEPA on the vote on opinions on CO2 standards: Tough balancing act

adminafia Leave a comment

The committee for Transport and Tourism in the European Parliament has voted yesterday to confirm the Commission’s proposed reduction targets for cars and vans, to call for more flexible rules on eco-innovations and to request the Commission to introduce Life-Cycle Analysis and Well-to-wheel data in emissions regulation. The committee for Industry, Research and Energy did not adopt a position after a vote which overall had produced contradictory results.

in CLEPA, 11-07-2018

CLEPA Secretary General Sigrid de Vries comments:

“Today’s vote reflects the tough balancing act policy makers are tasked with: Defining ambitious but realistic CO2-reduction targets while balancing environmental, consumer and economic interests at the same time. The European Commission has put a highly demanding proposal on the table, which will contribute to the Paris climate goals and to a transformation of the industry. Elaborating on this proposal is a complex task and today’s votes show that policy makers intend to take a detailed and critical look at the Commission’s proposal and the suggestions of stakeholders.

The proposed ambition level will drive the rapid transformation of the automotive landscape, both on the roads with a significant amount of electric and hybrid vehicles, as well as in the automotive industry where alternative propulsion technologies will become a major part of daily manufacturing. Together with digitalisation, decarbonisation constitutes the main transformational force in the sector.

The automotive suppliers support realistically ambitious reduction targets and stress the importance of a technology neutral approach to reduce emissions in the most efficient as well as least disruptive way. In that respect, CLEPA welcomes the support for eco-innovations reflected in the position of the committee for Transport and Tourism as well as for the inclusion of synthetic fuels in the scope of the legislation and a stronger recognition for hybrid technology in the so called ‘benchmark’.

Automotive suppliers are fully part of the transformation process manufacturing everything from electric drivetrain, to advanced combustion engine solutions to hydrogen and other alternative fuels-based technologies. Long-standing innovation and solution providers, they industrialise those technologies that help make transport safe, smart and sustainable. “

The opinion of the committee for Transport and Tourism will be taken into consideration by the leading committee for Environment, Public Health and Food Safety in the preparation of its vote in September and subsequently the vote in the Plenary of the European Parliament (EP), which is scheduled for October. Once EP and Council have decided on their respective positions, interinstitutional negotiations to adopt the regulation will start.

CLEPA statement on the applicability of End of Live Vehicle (ELV) Directive

adminafia Leave a comment

CLEPA has just published the statement on the applicability of “End of Live” (ELV) Directive vs the “Restriction of the use of certain hazardous substances in electrical and electronic equipment” Directive (RoHS)/ “Waste electrical and electronic equipment” Directive (WEEE) in the automotive industry

by CLEPA, 04-07-2017

EU WEEE directive 2012/19/EU (“Waste electrical and electronic equipment directive”) opens its scope by 15th of August 2018. WEEE applies to electrical / electronical equipment (EEE) and excludes specific EEE for the means of transport, that concerns vehicles, which are in scope of ELV.

 

As a consequence the directive covers further EEE, which were not in scope before. Exemplary examples of EEE new in scope include, but are not limited to clothes and furniture with installed electrical / electronical function such as:

  • Bathroom cabinets with installed illumination
  • Desks, which are adjustable by height through electrical function
  • Shoes with installed blinking lights.

 

The EU “End of Life” (ELV) Directive 2000/53/EC applies to vehicles, including components and materials of vehicles, as defined in article 3(1).

 

The CLEPA statement shall help CLEPA companies to define, which directives apply to their parts, either ELV directive or RoHS / WEEE directive. The statement is supported by JAPIA, the “Japan Autoparts Industry Organization”.

 

You can check the statement below

CLEPA STATEMENT

Industry4Europe coalition publish a new Joint Paper calling for an ambitious industrial policy in Europe

adminafia Leave a comment

The Industry4Europe coalition, of which CLEPA is a member, has today published a new Joint Paper to inform the EU debate on an new, ambitious industrial policy for Europe.

The Joint Paper makes recommendations with regard to the governance structure for such policy, which should facilitate dialogue as well as concrete implementation of actions.

by CLEPA, 03-07-2018

The Joint Paper was presented this morning to the Austrian Chairman of the Council High-Level Group on Competitiveness and Growth and will be shared with all Permanent Representations as well as with the European Commission.

 

With its first Joint Paper “For an ambitious EU Industrial Strategy: Going further” (October 2017), the Industry4Europe coalition called for a long-term vision for Europe’s industry which demands a long-term governance structure going beyond the 6-month EU Presidency cycle and the 5-year mandate of the current European Commission. Such a governance structure should enable the Commission, the Council and the European Parliament, together with industry stakeholders, to develop a common vision for a smart, innovative and sustainable industry.

Existing policies, initiatives and tools, addressing the challenges and gaps, including those described in the Commission’s Communication “Investing in a smart, innovative and sustainable Industry: A renewed EU Industrial Policy Strategy” of September 2017, should be reviewed in order to develop and implement a long-term comprehensive EU Industrial Strategy as well as for monitoring its progress on a regular basis.

 

Download the Joint Paper 2018-07-Industry4Europe – Joint Paper on Governance

Automotive Industry Guideline (AIG) on REACH has been published

adminafia Leave a comment

Version 4 of the Automotive Industry Guideline on REACH (AIG) has been published by the Automotive Task Force on REACH (TF-REACH)

by CLEPA, 02-07-2018

Task Force-REACH (Registration, evaluation, authorisation and restriction of chemicals) comprises representatives of all the major vehicle manufacturers and the automotive supply chain, including CLEPA.

The Task Force recommends a common schedule and external communication strategy in order to harmonise the sector’s response to REACH and avoid duplication and confusion by taking into consideration the automotive industry’s specific criteria and tools.

The TF’s approach and recommendations are outlined in the new Automotive Industry Guideline (AIG) on REACH.

 

The European REACH Regulation 1907/2006 came into force on 1 June 2007 and affects all industries. The Regulation requires immediate and ongoing action from automobile manufacturers and suppliers. Under REACH, substances manufactured or imported on their own or in mixtures, as well as substances intended to be released from articles, need to be registered according to the REACH timeline once a certain yearly tonnage is exceeded.  Additionally, Substances of Very High Concern (SVHCs) may require authorisation or may be restricted. SVHCs listed on the Candidate List need to be identified in articles and communicated throughout the supply chain and to the consumer if certain criteria are met. Companies that do not comply with REACH have no market, so continued REACH compliance is critical to maintain business continuity for any company doing business, or having customers or suppliers doing business, in the European Economic Area (EEA).

 

Version 4 of the Automotive Industry Guideline builds on the comprehensive automotive industry recommendations regarding numerous aspects of the REACH Regulation in the previous version 3.1, but includes significant changes to the following chapters:

 

  • Glossary of terms; Notification of Candidate List substances in articles; Communication requirements for Candidate List substances in articles; Authorisation procedure.

New annexes were also added:

 

  • REACH Substance Scrutiny – From PACT Onwards; REACH Annex XVII Impact Evaluation List; Practical Application of the O5A Principle for CL Substances in Articles; Sustainable Substitution Criteria; History of amendments to REACH Regulation; List of changes to AIG.

 

The AIG will be translated into Chinese, French, Japanese and Korean, so as to assist the global automotive supply chain in understanding their REACH obligations while also providing useful recommendations.

For more information and to download version 4 of the AIG free of charge, check 2018-07-AI guideline on REACH 4.0

CLEPA President: Smart policy avoids dependency on one technology

adminafia Leave a comment

CLEPA General Assembly confirms work programme and reaffirms leadership team

in CLEPA, 22-06-2018

CLEPA President Roberto Vavassori, speaking at the Association’s General Assembly last week, stressed that CLEPA will continue to make the case for technology neutrality, reaching out to policy makers, other sectors and societal stakeholders alike to build alliances for a holistic approach to decarbonise transport worldwide.

 

“CLEPA favours any and every technology that brings more sustainability to Europe, its citizens, its employees and its companies”, said Vavassori. There is the clear need to adopt an holistic approach to the decarbonisation of mobility. Europe’s automotive suppliers are part of the solution: we are at the same time concerned citizens wanting the best environment, critical consumers looking for the most convenient way to move around, as well as highly engaged employees in the mobility value chain”

 

“As it has been for the last century, we need to assure that the technologies for the mobility of the future continue to come from Europe. There is the need to define what I call the ‘European Way’, where a competitive regulation is an important part of the ecosystem, and the geopolitical context is taken into account. Smart policy avoids dependency on one technology, follows the circular economy principle and directs investments in a sustainable way.”

 

The CLEPA Annual General Assembly, taking place in The Hague, confirmed the activities and work plan of the association, and reaffirmed its leadership team with the election of two new vice-presidents as well as a number of Board of Director mandates. CLEPA members also reinforced the association’s operational structure, updating its governance rules and setting framework conditions to deliver on the organisation’s mission and vision.

The CLEPA focus in 2018 and 2019 will continue to be on the main regulatory dossiers currently going through the EU institution’s. These include the CO2 emission reduction proposals for both passenger cars and trucks, as well as the revision of the General Safety Regulation, which is essential to maintain the EU road safety record and prepare the way for automated driving. In addition, matters related to access to data, research & innovation, type approval, repair and maintenance, materials and substances, international trade developments and many other market access requirements are closely monitored by the association. Several of these topics will move over to the new Parliament and Commission terms, after the European elections in May of next year.

 

Since June 2017, CLEPA has added seven new members, reaching a total of 119 corporate members, 13 national associations and 11 associated members.

The next General Assembly meeting will be organised in Brussels in June 2019.

CO2 targets for trucks are seriously challenging – Smart strategy for emission reduction is necessary

adminafia Leave a comment

The European Commission has proposed today for the first time binding EU emission standards for trucks. The proposal contains a reduction of CO2 emissions from trucks by 15% in 2025 against a 2019 baseline and at least 30% in 2030. The parameter recognises payload and mileage and is expressed as the number of grams CO2 per tonne kilometre (g/tkm). A fine of 50€ per g/tkm will be imposed on manufacturers which miss the target. A bonus will be awarded for vehicles emitting 350g CO2/km or less.

in CLEPA, 17-05-2018

Sigrid de Vries, Secretary General of CLEPA comments: “The Commission has made a seriously challenging proposal today to help ensure that the transport sector fulfils its contributions towards the Paris agreement. Automotive suppliers actively support realistically ambitious targets and are key contributors to vehicle innovation in pursuit of safe, sustainable and smart mobility. However, the sector urges policy makers to maintain technology neutrality in the regulation and opt for a smart strategy in reducing CO2 emissions which reconciles European competitiveness and environmental protection.”

 

Highly ambitious CO? and fuel consumption reduction will only be possible with strong electrification of the fleet as well as additional policy measures, for example by strengthening the uptake of alternative fuels such as CNG (Compressed Natural Gas) and LNG (Liquified Natural Gas), paving the way for climate-neutral synthetic fuels, incentivising eco-innovations, improving infrastructure and rolling out intelligent traffic and transportation systems. Regulation should reward emission reductions, regardless of how these are achieved.

 

The automotive supply industry argues in favour of making the next steps towards a Well-to-Wheel approach and, in a further stage, Life-Cycle Assessment to take into account the carbon performance of fuels, energy source and vehicle manufacturing, address CO2 emissions beyond the tailpipe and reap the full benefits of technology neutrality. Furthermore, targets need to reflect the different transport tasks and the particularities of vehicle classes and powertrains. The industry also underlines the need to use robust data. CLEPA supports the VECTO tool, but the proposed reduction baseline of 2019 raises concerns as very little time will be left between the availability of the data and the application of the mid-term target. The inclusion of supercredits is seen as positive as it incentivises alternative powertrain technologies and adds flexibility towards meeting the targets.

 

Europe is a world leader in manufacturing efficient trucks with best-in-class technology. The regulatory framework should facilitate progress towards even higher efficiency, without prescribing specific technology.

CLEPA Aftermarket Conference 2018: connectivity and changes in vehicle ownership shake up the value

adminafia Leave a comment

in CLEPA, 26-03-2018

Connectivity and new vehicle ownership models definitely have the potential of disrupting the traditional value chain and the industry will have to adapt in order to find new collaboration models and partners and as such create new opportunities.

These amongst others were clear trends identified at the 9thedition of the Aftermarket conference, organised by the European Association of Automotive Suppliers (CLEPA) in Brussels on March 21st and 22nd 2018.

The audience, consisting of representatives from the European Commission and Parliament, other associations, automotive suppliers, vehicle manufacturers, wholesale distribution, trading groups and press, discussed the drivers for change and disruption within the automotive industry.

Presentations and key notes from established and new players identified new technologies on vehicles and the production of parts, the change of vehicle ownership as well as upcoming new business models as main drivers for the transformation. New competences, other success factors and a different mind-set will be needed to manage the future competitive challenges with the consumer in the center.

Roberto Vavassori, CLEPA President, reflecting on the conference said: “New players are on the verge of entering the automotive aftermarket sector, creating new mobility concepts. Although the real impact via e.g. electrification and connectivity is not to be expected before 2025, time is crucial, and suppliers need define their future positions as soon as possible.

Although there is still a lot of uncertainty, both established players and start-ups should not fear this upcoming disruption but embrace it.”

In general, the economic outlook for the global aftermarket business is positive but the main growth will be in the Eastern part of Europe and in Asia.

The market will see less but stronger players which will drive the digitalization and new platforms are expected to play a major role in distribution of parts and assigning repair jobs to workshops. The entire automotive industry must make tremendous efforts in direction of leaner processes and the ability to make use of in-vehicle data-based services around mobility.