2030 Climate plan: Technology openness holds key to climate neutrality

  • Automotive suppliers are in full support of climate neutrality by 2050
  • Any changes to vehicle targets for 2030 must take form in more comprehensive approach to regulating CO2 emissions
  • Disruption rather than transformation puts jobs and competitiveness at risk

in CLEPA, 16-09-2020


Sigrid de Vries, Secretary General of CLEPA, the association of the Automotive Suppliers’ Industry in Europe comments on today’s presentation by Commission President von der Leyen of the EU climate ambition until 2030:

“The automotive supply industry in Europe is a major force behind the transformation to sustainable, safe, and smart mobility. We support the Paris agreement and strive for a reliable, technology-neutral and ambitious regulatory framework to achieve its objectives.”

“Companies need the adequate conditions to manage the transformation that is unfolding. The magnitude and frequency of changes to these conditions and increasing regulatory interventions are a concern to industry. We are worried that the transformation will turn into a disruption of the sector’s capacity to innovate, invest and maintain employment. The risk of a substantial loss of employment is real. Suppliers are keen on delivering the technology solutions but stress the need for an honest debate about the effects of policy decisions.”

“The existing CO2 targets for vehicles have only been adopted in 2019 after a long and substantial debate. Planning and investment decisions have been taken with confidence in the reliability of the regulatory framework. An increased level of ambition for 2030, if coupled with stricter tailpipe targets for vehicles or possibly a ban on technologies, hampers industry competitiveness, requires massive public investment in infrastructure and makes mobility more expensive for citizens.”

“The Commission has not said much yet in concrete terms about the expansion of recharging and refuelling infrastructure. The programme for one million charging points is by far not enough, it would need to be upgraded along with the programmes in member states. Targets for e-fuels are missing. Already now, the deployment of charging and refuelling infrastructure does not keep pace with market penetration of alternative vehicles. We see many actions, but perhaps not enough strategy.“

“Suppliers have consistently argued for a more comprehensive approach to regulating emissions. In road transport all efficient and low or zero carbon solutions will be necessary and have to be effective in new vehicles but also the existing vehicle fleet. This includes battery electric vehicles, fuel cells, plug-in hybrids and efficient combustion engines, along with the necessary charging infrastructure and availability of renewable energy but also refuelling infrastructure and availability of renewable fuels, e-fuels, and hydrogen. Advanced renewable fuels are key to reducing emissions in the existing fleet and therefore a potentially much more effective lever than the regulation of new vehicles.”

“The economic and health challenges of the past months have reemphasised the role that transport has for society at large. We need to guarantee that the future will provide accessible and affordable mobility for all. Europe should make full use of its strengths, reinforcing its competitiveness, supporting its advanced technology competence and autonomy while securing its high value industrial base and employment. An open dialogue on how to best achieve the climate ambition, supported by a technology neutral and effective regulatory framework that rewards efficiency is necessary.”

 


 

About CLEPA

CLEPA, the European Association of Automotive Suppliers based in Brussels, represents over 3.000 companies, from multi-nationals to SMEs, supplying state-of-the-art components and innovative technology for safe, smart and sustainable mobility, investing over 30 billion euros yearly in research and development. Automotive suppliers in Europe employ about five million people across the continent.

 

 

Only weeks left to save EU and UK auto sectors from €110 billion ‘no deal’ Brexit disaster

  • EU and UK automotive leaders unite to call for urgent agreement of an ambitious free trade deal before the end of the transition period in just 15 weeks’ time.
  • New calculations show the catastrophic impact of ‘no deal’ with WTO tariffs putting production of some 3 million EU and UK built cars and vans at risk over next five years.
  • ‘No deal’ would mean combined EU-UK trade losses worth up to €110 billion to 2025, on top of around €100 billion in lost production value so far this year because of coronavirus crisis.
  • To avoid second economic hit to sector employing 14.6 million people, industry calls for negotiators to secure a deal urgently that delivers zero tariffs, modern rules of origin and avoids different regulations across the channel.

in CLEPA, 14-09-2020


With just 15 weeks before the Brexit transition period expires, European automotive industry leaders have today joined forces to call for the EU and UK to secure an ambitious free trade agreement (FTA) without further delay. Negotiators on both sides must now pull out all the stops to avoid ‘no deal’ at the end of the transition, which according to new calculations would cost the pan-European automotive sector some €110 billion in lost trade over the next five years,putting jobs at risk in a sector that supports 14.6 million livelihoods, representing one in 15 of EU and UK jobs.2

The lead organisations representing vehicle and parts makers across the EU, the European Automobile Manufacturers Association (ACEA) and the European Association of Automotive Suppliers (CLEPA), along with 21 national associations, including the Society of Motor Manufacturers and Traders (SMMT), German Association of the Automotive Industry (VDA), Comité des Constructeurs Français d’Automobiles (CCFA),  La Plateforme automobile (PFA) and the Portuguese Manufacturers Association for the Automotive Industry (AFIA), are today warning that the sector could face severe repercussions. Indeed, economies and jobs on both sides of the channel are at risk of a second devastating hit in the shape of no deal coming on top of around €100 billion worth of production lost so far this year due to the coronavirus crisis.3

Without a deal in place by 31 December, both sides would be forced to trade under so-called World Trade Organisation (WTO) non-preferential rules, including a 10% tariff on cars and up to 22% on vans and trucks.4 Such tariffs – far higher than the small margins of most manufacturers – would almost certainly need to be passed on to consumers, making vehicles more expensive, reducing choice, and impacting demand. Furthermore, automotive suppliers and their products will be hit by tariffs. This will make production more expensive or will lead to more imports of parts from other competitive countries.

Before the coronavirus crisis hit, EU and UK production of motor vehicles was running at 18.5 million units a year. This year some 3.6 million units have already been lost across the sector due to the pandemic. New calculations suggest that, for cars and vans alone, a reduction in demand resulting from a 10% WTO tariff could wipe some three million units from EU and UK factory output over the next five years, with losses worth €52.8 billion to UK plants and €57.7 billion to those based across the EU. Suppliers would also suffer from these changes.

This combined loss in trade value would seriously harm revenues for a sector that is one of Europe’s most valuable assets, employing millions of people and generating shared prosperity for all, with a combined trade surplus of €74 billion with the rest of the world in 2019. Collectively, the EU27 and UK automotive sector is responsible for 20% of global motor vehicle production and spends some €60.9 billion on innovation per year, making it Europe’s largest R&D investor.

Achieving an ambitious EU-UK FTA with automotive-specific provisions is critical to the European automotive industry’s future success. Any deal should include zero tariffs and quotas, appropriate rules of origin for both internal combustion engine and alternatively fuelled vehicles, plus components and powertrains, and a framework to avoid regulatory divergence.

Crucially, businesses need detailed information about the agreed trading conditions they will face from 1 January 2021 to make final preparations. This, combined with targeted support and an appropriate a phase-in period that allows for greater use of foreign materials for a limited period of time, will ensure businesses are able to cope with the end of the transition period.

Eric-Mark Huitema, ACEA Director General, said: “The stakes are high for the EU auto industry – we absolutely must have an ambitious EU-UK trade agreement in place by January. Otherwise our sector – already reeling from the COVID crisis – will be hit hard by a double whammy.”

Sigrid de Vries, CLEPA Secretary General, said: “A ‘no deal’ Brexit would disrupt the integrated automotive supply chain and hit industry at a critical moment. The impact will be felt far beyond the bilateral trade streams alone, translating into a loss of jobs and investment capacity. The automotive sector is the EU’s largest private R&D investor with €60 billion invested each year. We need a deal that maintains the sector’s global competitiveness.”

Mike Hawes, SMMT Chief Executive, said: “These figures paint a bleak picture of the devastation that would follow a ‘no deal’ Brexit. The shock of tariffs and other trade barriers would compound the damage already dealt by a global pandemic and recession, putting businesses and livelihoods at risk. Our industries are deeply integrated so we urge all parties to recognise the needs of this vital provider of jobs and economic prosperity, and pull out every single stop to secure an ambitious free trade deal now, before it is too late.”

Hildegard Müller, President of VDA, said: “The automotive industry needs stable and reliable framework conditions. It would be to the great disadvantage of both sides if the UK withdrawal were to end with the application of tariffs in mutual trade. This would jeopardise closely linked value chains and possibly make them unprofitable. Our member companies have more than 100 production sites in the United Kingdom. We hope that the EU and the UK will continue their close partnership – with a comprehensive free trade agreement.”

Thierry Cognet, President of CCFA, said: “A ‘no deal’ situation on 1 January 2021 would be particularly challenging for manufacturers. What we need from negotiators, in an economic context already very affected by the COVID crisis, is a substantial deal protecting us from tariffs, quotas and regulatory divergence.”

José Couto, President of AFIA, said: “The automotive industry needs an agreement that maintains competitiveness and allows companies to continue trading with their UK partners. The UK is the 4th largest customer for automotive components manufactured in Portugal”.

The 23 automotive association signatories include:

  • ACAROM – Romanian Association of Automobile Builders www.acarom.ro
  • ACEA – European Automobile Manufacturers Association www.acea.be
  • ACS – Automotive Cluster of Slovenia www.acs-giz.si/en
  • AFIA – Portuguese Manufacturers Association for the Automotive Industry www.afia.pt
  • AIA – Czech Automotive Industry Association www.autosap.cz
  • ANFIA – Italian Association of the Automobile Industry www.anfia.it
  • AUTIG – Danish Automotive Trade & Industry Federation www.autig.dk
  • BIL SWEDEN – Swedish Association of Automobile Manufacturers and Importers www.bilsweden.se
  • CCFA – Committee of French Automobile Manufacturers www.ccfa.fr
  • CLEPA – European Association of Automotive Suppliers www.clepa.eu
  • FEBIAC – Belgian Federation of Automobile and Motorcycle Industries www.febiac.be
  • FKG – Scandinavian Automotive Supplier Association www.fkg.se
  • FFOE – Austrian Association of the Automotive Industry www.fahrzeugindustrie.at
  • ILEA – Luxembourg Automotive Suppliers Association www.ilea.lu/
  • MGE – Hungarian Vehicle Importers Association www.mge.hu
  • PFA – French Association of the Automotive Industry www.pfa-auto.fr/
  • RAI – Dutch Association for Mobility Industry www.raivereniging.nl
  • SDCM – Polish Association of Automotive Parts Distributors and Producers www.sdcm.pl
  • SERNAUTO – Spanish Association of Automotive Suppliers www.sernauto.es
  • SIMI – Society of the Irish Motor Industry www.simi.ie/en
  • SMMT – Society of Motor Manufacturers and Traders www.smmt.co.uk
  • TAYSAD – Automotive Suppliers Association of Turkey www.taysad.org.tr
  • VDA – German Association of the Automotive Industry www.vda.de
  • ZAP – Automotive Industry Association of the Slovak Republic www.zapsr.sk

 


Notes to editors

1: SMMT calculations covering cars and LCVs. Ave FX rate of Aug 2020 of £- € @1.110715. Based on imposition of 10% tariff = 6.3%
price rise = 18.9% drop in demand. Uses average new car and LCV prices based on JATO data.
2: ACEA pocket guide 2020 / 21
3: SMMT & ACEA calculations, IHS Markit LV Production Recovery Tracker (July 2020)
4: UK Global Tariff (10% for cars / vans) & EU Common External Tariff (10-22% dependent on category and tonnage)
5: ACEA pocket guide 2020 / 21 includes cars, vans and HGVs
6: ACEA pocket guide 2020 / 21 (passenger vehicles and LCVs only)
7: SMMT calculations covering cars and LCVs. Ave FX rate of Aug 2020 of £- € @1.110715. Based on imposition of 10% tariff = 6.3%
price rise = 18.9% drop in demand. Uses average new car and LCV prices based on JATO data.
8: ACEA pocket guide 2020 / 21

 

About the EU sector

  • 14.6 million Europeans work in automotive, accounting for 6.7% of all EU jobs.
  • Motor vehicle taxation brings in €440.4 billion for governments in major European markets
  • The automobile industry generates a trade surplus of €74 billion for the EU.
  • The turnover generated by the automotive industry represents over 7% of EU GDP.
  • Investing €60.9 billion in R&D annually, the automotive sector is Europe’s largest private contributor
    to innovation, accounting for 29% of total EU spending
  • EU leads the world when it comes to self-driving vehicles, responsible for more than 30% of all global
    patent applications.

 

About CLEPA

CLEPA, the European Association of Automotive Suppliers, represents over 3.000 companies supplying
state-of-the-art components and innovative technology for safe, smart and sustainable mobility, investing
over 30 billion euros yearly in research and development. Automotive suppliers in Europe directly and
indirectly employ nearly five million people across the continent.

 

 

NextGenerationEU: reality and ambition are bound to collide

EU leaders will gather next week for an additional EU Summit to try and come closer on the next 7-year EU budget and the additional special funds to be channelled into economic recovery. Dubbed NextGenerationEU, resilience seems to be the key concept behind much of the measures proposed, with the magic ingredient being investment.

in CLEPA, 10-07-2020


It is crucial that governments agree soon, because most of the funds will become available only next year or later, and further delay would be detrimental. The crisis is hitting the economy hard, and viable companies are already incurring serious damage.

Resilience—making Europe more self-sufficient and future proof—is used as explanation for why the proposed recovery package has all the features of a fundamental restructuring programme, aimed at propelling the EU’s environmental and digital transformation.

Are we talking recovery or reform?

“Are we talking recovery or reform”, asked a diplomat the other day, admittedly rhetorically. Many in industry had quietly thought the same. While the visionary appeal of the approach may be apparent and no-one questions the overarching need for going digital and green, the challenge remains to make it all work on the ground, where economies are in disarray.

The risk is that recovery and crisis relief are losing relevance as objectives in their own right, with their own set of requirements and, particularly, their need for speed.  How grave the situation is, can be illustrated well with the measure of global car sales which is predicted to remain 23% below last year in Europe and -17% globally: the equivalent of 14 million cars, which is more than the entire volume of new cars sold annually in European markets.

Risk is that recovery and crisis relief are losing relevance as objectives in their own right

These are unprecedented drops in sales and the underlying economic activity will take at least 2 to 3 years to recover. The latest CLEPA Pulse Check, taking the temperature of the European automotive supply industry specifically, shows that half of European suppliers expect revenue declines of more than 20% in 2020 and a further third reckon with a drop of more than 30%. Although profit estimates have slightly improved compared to April, only 39% of suppliers are confident in achieving a profit in 2020.

European suppliers are increasingly taking long-term measures, with 62% indicating their implementation of such measures has started and 13% saying they’re already completed. Cutting investment and headcount rank as number one and two, but suppliers are also increasingly looking at shortening supply chains, sourcing in, optimising the manufacturing footprint, and opting for partnerships, mergers and takeovers and adapting their product portfolios.

 

Heavy pressure on investment capacity does not bode well for ability to drive necessary transformation

The heavy pressure on investment capacity does not bode well for the ability to drive the necessary transformation, which industry had started full throttle before Covid hit. The revenues to finance these investments will have to materialise, and this is where reality and ambition are bound to collide. Industry needs the framework conditions to thrive and invest.

NextGenerationEU, the European Green Deal and the Digital Agenda are declared economic growth strategies, designed to invest public money as a lever for even larger sums of private investment. Because this is clear: the green and digital transformation needs industry to deliver them, and most of the funding will have to come from businesses. Careful management by both policy makers and business will be necessary to get it right.

The European Commission has firmly put the ball in the court of the member states. While the heads of state must still agree on the actual sums to be allocated, national capitals are already asked to hand in their national recovery plans by October, in order to start discussions on approval of the content soon. National packages, hence, will decide the level and scope of support for truly European industries, such as automotive.

Need for European approach on levels below the visionary as well

No doubt, the EU is a complex animal. Most funds come from national pockets, and many policy competences are still national. Yet, the Commission is the guardian of the EU project and has many instruments at its disposal, including soft policy such as guidance on and coordination of best practices, that can make a difference in putting the framework right, especially but not only in support of smaller and mid-sized countries.

The automotive industry is crucial for the economic fabric of Europe. The sector is vast, innovative, with long value chains and strong eco-systems; a textbook example of how European integration and the internal market have helped make the European economy more competitive and, yes, resilient. What is needed now, is leadership and clearer directions for ensuring a European approach on levels below the visionary as well.

 

Sigrid de Vries, CLEPA Secretary General

 

CLEPA Innovation Awards 2020: application deadline extended until July 10th, 2020

Taking into consideration the extraordinary circumstances we are living, CLEPA has decided to prolong the deadline for applications for the CLEPA Innovation Awards 2020 to allow more companies to submit their initiatives. The new deadline will be extended until the 10th July.

in CLEPA, 08-06-2020


The European Association of Automotive Suppliers, in cooperation with Deloitte, highlights for the 5th consecutive year, the outstanding achievements made in the automotive supply industry in the fields of Environment, Safety, Connectivity & Automation and Cooperation.

This year, given the impact of COVID-19 at a global scale, CLEPA will make a public special recognition to supplier initiatives that have contributed to the relief of the virus.

The contest is open to all companies–including SMEs and startups–, research centres, educational institutions, other organisations, and stakeholders participating in the development of mobility technology. And, to acknowledge the role of small and mid-sized companies in the industry’s achievements, the Innovation Awards also contain a special prize for SMEs in each category.

The CLEPA Innovation Awards 2020 ceremony will be held on the 25th of November in Brussels, where the winners will be announced.

 

CLEPA Innovation Awards 2020

 

IndustriAll Europe, Ceemet, ACEA, CLEPA, CECRA and ETRMA call for an ambitious recovery plan for the automotive sector

Saving jobs while reducing emissions

in CLEPA, 26-05-2020


For many decades, the European automotive sector has been one of the key pillars of the economic and social welfare of Europe. Indirectly, the sector provides employment to 13,8 million workers. The European assembly plants still produce 1 in every 4 cars worldwide. The sector is highly innovative and accounts for 20% of industrial research funding in Europe. Europe’s automotive sector has become a global leader with a strong export orientation. It is a stronghold of European industry and a driver for jobs and economic growth across Europe. As a result of the substantial economic interlinkages with other sectors along the value chain, its importance for employment and growth for the whole economy is clear.

COVID-19 provoked an unprecedented crisis in the sector with an effective standstill of car production and distribution in Europe for several weeks. Sales came to a halt, investments have plummeted and the market introduction of new clean models has been postponed. At the same time, post-pandemic work organisation is increasing production costs.

The economic and social impact of the COVID-19 crisis on the automotive sector is particularly severe. Workers, although supported by short-time work arrangements, have seen their incomes reduced, and companies are facing cash drains as their revenues have disappeared. Currently, there is little visibility on what the future holds. If this situation persists, the sector risks a meltdown with large-scale bankruptcies and restructuring.

During the financial crisis (2008-13), the automotive sector lost 440.000 jobs (in car production and the aftermarket). If no measures are taken, this number risks being dwarfed by the current recession which may be much deeper.

Therefore, industriAll Europe, Ceemet, ACEA, CLEPA, CECRA and ETRMA, the European business organisations and the trade unions for the sector call on the European Commission for a bold industrial recovery plan. Such a plan should be based on two objectives. First of all, bringing the industry back on track by stimulating sales and reviving production, and secondly, supporting the industry in its journey towards a carbon-neutral future, based on the Green Deal and Europe’s climate objectives.

To date, the sector has been substantially investing in its transition towards the new paradigm of a carbon-neutral and digitalised economy: including, alternative powertrains, batteries, connected cars, mobility services, and automated driving. The industry can make a real contribution to the Green Deal and mitigating the climate emergency. But due to COVID-19, strong support from the national governments and the Commission is needed in order to help the sector to make the necessary investments in transitioning to decarbonisation while supporting European jobs and keeping its contribution to EU exports and the social welfare of European citizens.

To bring the sector back on track and enable it to emerge from this recession, the European automotive sector urgently needs:

  • Coordinated measures to support the relaunch of the industry incl. the aftermarket with harmonised guidance on preventive health and safety measures for the workplace; coordination is also needed to avoid further disruptions in the sophisticated automotive supply chains.
  • Support for viable companies to maintain their resilience. To avoid stranded assets liquidity support has to be maintained as long this is needed: state aid, investment guarantees, tax breaks, soft loans
  • Support for companies in maintaining/developing their human capital while the income and job security of workers must be preserved e.g.  through continuation of short-time work arrangements connected to skills upgrading
  • Introduce/reinforce temporary demand stimulus measures by vehicle renewal schemes that are coordinated on EU level and financially supported by the Commission. These measures should be eligible for latest technologies and in addition be differentiated according safety and environmental performance based on certified CO2 emissions.  Demand stimulus is needed to re-start the assembly lines and to preserve jobs. It should also restore the capacity of companies to generate the cash flows they need to invest in a sustainable future.
  • Take into account these extraordinary circumstances when assessing the impact of regulatory reforms on the sector.

To support the sector in delivering on the digital and low-carbon transitions, we request that the European Commission takes the following actions:

  • Develop and maintain technological leadership by means of ambitious technology programmes to support both digital and low-carbon transitions
  • Provide investment support (grants, loans, equity) for the market introduction of new sustainable technologies
  • Accelerate the roll-out of charging and re-fuelling infrastructure for cars, vans and commercial vehicles in public, as well as private, places, and deliver at least 2 million charging points and refuelling stations across the EU for all vehicle types as indicated earlier.
  • Introduce/reinforce market incentives to promote the uptake of alternative powertrains
  • Promote industrial collaboration and industrial alliances to share the cost of the development and market introduction of new low-carbon technologies
  • Facilitate investments in the next generation digital infrastructure as a key enabler for more reliable connectivity between vehicles
  • Make use of innovative public procurement to support demand and to bring new innovations to the market
  • Boost investment in the research and developments as well in the production of batteries, hydrogen, and low-carbon liquid fuels, within the European Union.
  • Develop the circular economy connected to the automotive supply chain (recycling, re-manufacturing, re-use)
  • Support the many automotive SME’s in redefining their value chain positioning in a fast-changing automotive landscape

As the COVID-19 crisis has serious ramifications for jobs, industriAll Europe, Ceemet, ACEA, CLEPA, CECRA and ETRMA, call for the organisation of a just transition for every worker affected by restructuring.  Solutions have to be found through timely anticipation of change, an effective social dialogue at all levels, active labour market policies, up-and re-skilling, and support to redevelopment plans for automotive regions.

industriAll Europe, Ceemet, ACEA, CLEPA, CECRA and ETRMA insist that the upcoming European recovery plan pays due attention to a sector that has already invested heavily in its transition and that has the ambition to continue these investments once it has overcome the COVID-19 crisis.  To save jobs and companies, it is important to act decisively to ensure the continuity of economic activity, to stave off bankruptcies and to prevent mass layoffs. The EU must maintain the ambition to keep the full automotive value chain inside the EU. This would allow the EU to keep a strong European automotive sector and to maintain our global leadership in clean vehicles, to deliver on its climate objectives and to maintain/create high quality jobs. Finally, a recovery of the automotive sector will generate positive knock-on effects for the overall economy.

 


Note to editors: EU’s automotive sector

  • 13.8 million Europeans work in automotive, accounting for 6.1% of all EU jobs.
  • 11.4% of EU manufacturing jobs – some 3.5 million – are in the automotive sector.
  • Motor vehicle taxation brings in €440.4 billion for governments in major European markets
  • The automobile industry generates a trade surplus of €84.4 billion for the EU.
  • The turnover generated by the automotive industry represents over 7% of EU GDP.
  • Investing €57.4 billion in R&D annually, the automotive sector is Europe’s largest private contributor to innovation, accounting for 28% of total EU spending.

The EU motor vehicle fleet is getting older year-on-year. Passenger cars are now on average 11.1 years old, vans 11 years and heavy commercial vehicles 12 years.

 


 

About the organisations:
IndustriAll European Trade Union is the federation of independent and democratic trade unions representing workers in the metal, chemical, energy, mining, textile, clothing and footwear sectors and related industries and activities. IndustriAll Europe represents 7 million working men and women united within 180 national trade union affiliates in 38 European countries.
Contact: Andrea Husen-Bradley, press & communication, +32 473 73 43 63, ahb@industriall-europe.euwww.industriall-europe.eu

ACEA, the European Automobile Manufacturers’ Association, represents the 16 major Europe-based car, van, truck and bus manufacturers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Fiat Chrysler Automobiles, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, PSA Group, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
Contact: Cara McLaughlin, Communications Director, +32 485 886 647, cm@acea.bewww.acea.be

CECRA is the European federation bringing together national professional associations which represent the interest of motor trade and repair businesses and European Dealer Councils. CECRA represents on a European scale 336.720 motor trade and repair businesses. Together they employ 2.9 million people.
Contact: Bernard Lycke, Director General, +32 475 932 693, bernard.lycke@cecra.eu, www.cecra.eu

CLEPA, the European Association of Automotive Suppliers, represents over 3.000 companies supplying state-of-the-art components and innovative technology for safe, smart and sustainable mobility, investing over 25 billion euros yearly in research and development. Automotive suppliers in Europe directly and indirectly employ nearly five million people across the continent.
Contact: Pilar Pérez, Communications Director, +32 478 949 159, communications@clepa.be, www.clepa.eu

ETRMA, the European Tyre & Rubber Manufacturers Association represent nearly 4.400 companies in the EU, directly employing about 370.000 people. The global sales of ETRMA’s corporate members represent 70% of total global sales, have a strong manufacturing and research presence within the EU and candidate countries, with 93 tyre-producing plants and 17 R&D centres.
Contact: Fazilet Cinaralp, Secretary General, +32 475 34 83 71, f.cinaralp@etrma.org, www.etrma.org

Ceemet represents the metal, engineering and technology-based industry employers in Europe. Member organisations represent 200,000 companies in Europe, providing over 17 million direct and 35 million indirect jobs. Ceemet is a recognised European social partner at the industrial sector level, promoting global competitiveness for European industry through consultation and social dialogue.
Contact: Chetan Corten, Head of Communications, +32 472 25 02 28, chetan.corten@ceemet.org , www.ceemet.org

 

CLEPA and ACEA Press Release | CEOs and European Commission discuss recovery plan that bolsters economy and Green Deal

COVID-19: Automotive CEOs and European Commission discuss recovery plan that bolsters economy and Green Deal

in CLEPA, 14-05-2020


CEOs from across the automotive value chain came together for a meeting with the European Commission to align on the priorities for a solid recovery plan for the automotive sector, with a view to stimulating the wider economy and bolstering the transformation to a carbon-neutral society.

CEOs of vehicle manufacturers and component suppliers, as well as their respective associations – the European Automobile Manufacturers’ Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) – held constructive discussions with Frans Timmermans, the Commission’s Executive Vice-President for the Green Deal, and Thierry Breton, Commissioner for Internal Market, during a conference call yesterday evening.

With extended factory closures across Europe, a loss in production of 2.4 million vehicles so far and car sales down by more than 95% in major EU markets last month, the whole sector is at risk of liquidity shortages and sees its performance threatened for some time to come. The situation in the automotive industry has a significant knock-on effect on other parts of the economy.

“The number one priority of the industry is to re-launch the market, thereby enabling production to resume at manufacturing sites across the EU,” stated ACEA Director General, Eric-Mark Huitema. “Given the near-total collapse in sales, it will be crucial to provide a strong market stimulus to enable vehicle makers to fully re-open production facilities and keep people in jobs.”

During the meeting, ACEA and CLEPA called on the European Commission to coordinate national fleet renewal schemes to ensure that the market conditions are harmonised across the continent, and to supplement these with the EU budget.

“As we work on putting the wheels back in motion, we must look for win-win solutions, addressing the pressing environmental, industrial and broader societal needs,” said Sigrid de Vries, CLEPA Secretary General. “The purpose of recovery measures should therefore be two-fold: to re-start the industry and to employ the full range of technology solutions that are available and needed for carbon-neutrality. Hand in hand with investments in renewable energy carriers and infrastructure, this will propel the Green Deal as well as safeguard employment and industrial activity in Europe.”

Although vehicle and component production is slowly starting to pick up again, there are huge discrepancies amongst member states. This is hampering the recovery of an industry that depends on supply chains spanning right across the European continent. The CEOs therefore re-iterated their plea for a coordinated re-start of activities and investments along the entire value chain.

 

***

NOTES FOR EDITORS

CEOs and other industry participants present at the meeting:

 

CLEPA

  • Faurecia; Patrick Koller, Chief Executive Officer
  • Robert Bosch; Volkmar Denner, Chairman of the Board of Management
  • ZF Friedrichshafen; Wolf-Henning Scheider, Chief Executive Officer
  • CLEPA; Thorsten Muschal, President (member of the board of Faurecia)

 

ACEA

  • BMW Group; Oliver Zipse, Chairman of the Board of Management
  • CNH Industrial; Suzanne Heywood, CEO
  • Daimler AG; Ola Källenius, Chairman of the Board of Management Daimler AG & Head of Mercedes-Benz Cars
  • Daimler Truck AG; Martin Daum, Chairman of the Board of Management
  • DAF; Harry Wolters, President
  • Ferrari; Michael Leiters, Chief Technology Officer
  • Fiat Chrysler Automobiles; Mike Manley, Chief Executive Officer and President ACEA
  • Honda Motor Europe; Ian Howells, Senior Vice President
  • IVECO; Gerrit Marx, President Commercial and Specialty Vehicles
  • Jaguar Land Rover; Ralf Speth, Chief Executive Officer
  • MAN Truck & Bus AG; Joachim Drees, CEO
  • Scania AB; Henrik Henriksson, President & CEO and Chairman ACEA Commercial Vehicle Board
  • Toyota Motor Europe; Didier Leroy, Chairman of the Board of Management
  • Volvo Car Group; Mårten Levenstam, Head of Product Strategy
  • Volkswagen Commercial Vehicles; Thomas Sedran, CEO and Chairman ACEA Light Commercial Vehicle General Managers’ Committee

About CLEPA

  • CLEPA represents over 3.000 companies and over 20 national associations and sector associations
  • Automotive parts and system suppliers provide state-of-the-art components and innovative technology solutions for safe, smart and sustainable mobility, investing over 25 billion euros yearly in research and development.
  • Automotive suppliers in Europe employ overall nearly five million people across the continent.
  • More information about CLEPA can be found on www,clepa.eu or https://twitter.com/CLEPA_eu.
  • Contact: Clara Guillén, Communications Manager, c.guillen@clepa.be, +32 2 743 91 20.

 

About ACEA

  • ACEA represents the 16 major Europe-based car, van, truck and bus manufacturers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Fiat Chrysler Automobiles, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, PSA Group, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
  • The ACEA commercial vehicle members are DAF Trucks, Daimler Trucks, Ford Trucks, IVECO, MAN Truck & Bus, Scania, Volkswagen Commercial Vehicles, and Volvo Group.
  • More information about ACEA can be found on www.acea.be or www.twitter.com/ACEA_eu.
  • Contact: Cara McLaughlin, Communications Director, cm@acea.be, +32 485 88 66 47.

 

Automotive industry restarts, but concerns on outlook deepen

COVID-19 is having a major impact on the economy, with an unprecedented halt in retail and manufacturing activity and concerns mounting on consumer sentiment. In April 2020, the Economic Sentiment Indicator in both the Eurozone and EU showed the strongest monthly decline since 1985, with both consumer and business confidence reaching lows last registered in March 2009.

in CLEPA, by Sigrid de Vries, 11-05-2020


This is the dramatic backdrop against which the European automotive industry is trying to ease out of lockdown, carefully ramping up its manufacturing activity. Restarting plants and logistical operations across the EU is a tedious and highly complex process, and ultimately relies on enough demand in the pipeline. It also relies on a functioning internal market, which is far from given today. Member states and regions are at very different stages in the corona crisis, and restart measures would benefit from a much deeper and broader Europe-wide coordination.

CLEPA regularly updates an overview of containment measures in Member States and whether automotive manufacturing and sales activity is resuming or set to restart. The overview includes latest announcements by OEMs on planned production restarts per country, and is part of the weekly COVID-19 news flash the association disseminates to its members.

Volatility of demand is considered the most critical issue for the automotive supply chain at the moment. A CLEPA survey of automotive system and component suppliers in Europe, gauging the impact of the COVID-19 crisis, shows 90% of respondents ranking uncertainty of what and how much to produce as their number one concern. Their future perspective depends very much on consumer sentiment and demand picking up substantially.

Future relies very much on demand picking up

The sector’s outlook has worsened considerably over the past weeks. Over 90% of businesses expect a drop in revenue in 2020 of at least 20%, up from 60% having this expectation in March. Over a third expect a reduction of more than 30%. Profitability will take an even harder hit, with more than half of respondents now expecting to make a loss before taxes. The perspective of a quick recovery worsened significantly as well. Three out of four businesses fear that it will take more than a year to recuperate, whereas four weeks ago the consensus tended towards 6-12 months. One third of respondents foresee a timeframe of two to three years.

CLEPA has urged EU and national governments this week to launch EU-coordinated vehicle renewal schemes to kickstart economic recovery and support the relaunch of the sector. Demand stimulus will help to increase the utilisation of manufacturing capacity and therefore safeguard jobs and investment capacity. The automotive sector will act as an engine of overall economic recovery thanks to the sector’s vast and interconnected ecosystem, significant employment impact and immediate knock-on effect on other sectors of the economy.

This call for action is part of the 25-point Joint Action Plan for a Successful Restart, published by CLEPA this week along with the three other European associations representing the full automotive value chain, from equipment and tyre suppliers, to vehicle manufacturers, to dealers and workshops. Together, the sector wants to contribute to a policy response to COVID-19 that ensures public health, minimises the impact on the economy and maintains focus on the overarching objectives of our time: the digital and carbon-neutral society.

25 points to minimise economic damage and keep focus on digital and carbon-neutral society

Europe needs a strong automotive ecosystem to push ahead with ambitious environmental, digital and road safety targets. Investment in people and R&D remain essential, and yet is under immediate pressure.

To cope with the crisis, a large share of businesses plan to cut investment and reduce their workforce and, according to the CLEPA survey, half of businesses intend to adjust investment and workforce already in the short-term. The remainder foresees such measures being taken in the next 6-12 months. Revision of manufacturing footprint is also considered.

Around five million Europeans work in automotive manufacturing, R&D and supporting operations. In total, the sector accounts for about 13.8 million jobs. With employment Commissioner Nicolas Schmit, first steps are being taken to build a dedicated skills pact for the automotive sector. The crisis is accelerating the transformation of the sector, and industry and policy makers must work together to sustain employment and make the workforce future proof.

To underpin Europe’s long-term competitiveness, the EU should also leverage all instruments at its disposal to support research and innovation. This includes the EU budgets for Horizon Europe, public procurement and financing tools from the EIB. Almost 40% of respondents in the CLEPA survey have already taken steps to cut R&D budgets, with 32% undecided and 30% at this stage having decided against. Supporting the innovative capacity of the sector will be crucial to relaunch from the crisis in a sustainable way. Automotive suppliers are among the largest private investors in R&D, contributing significantly to the competitiveness of the automotive sector in Europe.

 

CLEPA Secretary General

Outlook automotive suppliers worsens considerably, latest survey shows

A survey of automotive supplier companies in Europe to gauge the impact of the COVID-19 crisis shows that the sector’s outlook has worsened considerably over the past weeks.

in CLEPA, 08-05-2020


Over 90 percent of businesses expect a drop in revenue in 2020 of at least 20%, up from 60% in March. 35% percent expect a reduction of more than 30%. Profitability will take an even harder hit, with more than half of respondents now expecting to make a loss before taxes. The perspective of a quick recovery worsened significantly as well. Three out of four businesses fear that it will take more than a year to recuperate, whereas 4 weeks ago the consensus tended towards 6-12 months. One third of respondents counts with a timeframe of 2 to 3 years.

CLEPA, the European Association of Automotive Suppliers, surveyed its membership between April 27 to 30. The input was aggregated by consultancy firm McKinsey this week.

 

90% of respondents rank volatility of demand as the most critical issue for the automotive supply chain

Volatility of demand is considered the most critical issue for the automotive supply chain at the moment, with almost 90% of respondents ranking this topic their number one concern. Often, also, production restarts at very low levels. This makes fixed cost rocket compared to turnover. The further outlook depends very much on demand for vehicles and, hence, for automotive components picking up substantially. In this light, CLEPA together with the other European sector associations representing the automotive value chain, has urged governments to launch EU-coordinated vehicle renewal schemes to kickstart economic recovery and support the relaunch of the sector.

 

On health and safety 85% of respondents indicates to be well prepared and apply proactive risk mitigation measures

To cope with the crisis, a large share of businesses (84%) plan to cut investment and reduce workforce (78%). Almost 40% have already taken steps to cut R&D budgets, with 32% undecided and 30% at this stage decided against. Automotive suppliers are among the largest private investors in R&D, contributing significantly to the competitiveness of the automotive sector in Europe. Revision of manufacturing footprint is also considered.

Half of respondents plan to adjust investment and workforce already in the short-term. The remainder foresees such measures to be taken in the next 6-12 months. To date, the jobs of more than 1,1 million Europeans employed by vehicle manufacturers are affected by factory shutdowns. The wider automotive employment impact is even more critical: the general multiplier counts with 3 jobs in the immediate supply chain and another 3 for the value chain further down the line.

Health and safety on the work floor remains a matter of high priority both during and after the ramping-up of production. 85% of respondents indicates to be well prepared and apply proactive risk mitigation measures. Personal protective equipment (PPE) is seen as the main measure applied on the shop floor, with usage expected beyond the next three months. Distancing measures and decoupling of shifts are widely applied as well.

Automotive sector calls for vehicle renewal incentives to kickstart economic recovery

COVID-19 is having a major impact on the economy, with retail and manufacturing activity crippled without precedence and concerns mounting on consumer sentiment. The European automotive sector, which has been hit particularly badly, proposes a plan comprised of 25 key actions to ensure a strong restart of the sector and the economy at large.

in ACEA, CECRA, CLEPA, ETRMA, 05-05-2020


Targeting decision makers at EU and national level, the action plan lists tangible recommendations to successfully exit from the corona crisis. It is issued by the four associations representing the full automotive supply chain: from equipment and tyre suppliers, to vehicle manufacturers, to dealers and workshops (ACEA, CECRA, CLEPA and ETRMA). Together, they want to contribute to a policy response to C-19 that ensures public health, minimises the impact on the economy and maintains focus on the overarching objectives of our time: the digital and carbon-neutral society.

As part of the action plan, the sector calls for coordinated vehicle renewal schemes for all vehicle types and categories across the EU. This will boost private and business demand, support economic recovery across the board as well as accelerate the rejuvenation of the vehicle fleet on Europe’s roads. Purchase and investment incentives should be based on similar criteria across Europe, drawing on both national and EU funding. Such schemes should be enhanced by scrapping premiums, and should take into account society’s climate ambitions and resource-efficiency objectives in concert with the economic impact.

Eric-Mark Huitema, Director General of ACEA, the automobile manufacturers’ association stated: “It is now crucial to bring the entire automotive value chain back into motion. We need a coordinated relaunch of industrial and retail activity, with maintained liquidity for businesses. Targeted measures will need to be taken to trigger demand and investment. Demand stimulus will boost the utilisation of our manufacturing capacity, safeguarding jobs and investments.”

Bernard Lycke, Director General of CECRA, the association of automotive dealers and workshops says: “To relaunch mobility and economic activity, it will be essential that vehicle dealerships and motor vehicle workshops reopen as soon as possible in the countries where they are still closed. Targeted purchase incentives and scrappage schemes for all categories of vehicles will, in addition to spurring the recovery, make a positive contribution towards carbon neutrality and road safety.”

Sigrid de Vries, Secretary General of CLEPA, the association of the automotive suppliers’ industry in Europe says: “Restarting the automotive sector will act as an engine of overall economic recovery because of the significant employment impact and immediate knock-on effect on other sectors. Investment in people and R&D remains key as well. Europe needs a strong automotive ecosystem to stay competitive and push ahead with ambitious environmental, digital and road safety targets.”

Fazilet Cinaralp, Secretary General of ETRMA, the European Tyre & Rubber Manufacturers Association: “The automotive sector is committed to emerging from this crisis stronger than before. A successful restart requires a supportive regulatory framework that protects public health, minimises the impact on the economy and ensures a transition to a circular, carbon-neutral economy. In close collaboration with the European Commission, we want to contribute to a policy response that brings about a successful COVID-19 recovery.”

For more information, click in the following link:

Europe’s four auto sector associations publish 25-point action plan for successful restart

https://afia.pt/wp-content/uploads/2020/05/25-ACTIONS-for-a-successful-restart-of-the-EUs-automotive-sector.pdf

 

CLEPA and ACEA Press Release | Automotive industry signs joint Code of Business Conduct to support re-start of production

CLEPA (the European Automotive Suppliers’ Association) and ACEA (the European Automobile Manufacturers’ Association) have jointly adopted a ‘Code of Business Conduct in view of COVID-19’ to support a rapid and smooth restart of the automotive industry.

in CLEPA, 15-04-2020


The automotive eco-system resembles an intricate clockwork and today’s unprecedented standstill of operations risks doing a lot of damage to an otherwise thriving, innovative and competitive industry. A successful exit from the corona crisis will require timely sharing of critical and appropriate information, making sure that all players in the value chain can plan and act as effectively as possible. The Code of Conduct therefore contains chapters on health and safety in the workplace, timely communication, contractual requirements and coordination of the restart.

“While the safety and wellbeing of our communities remains first priority, a well-coordinated and timely restart of the sector is of utmost importance to mitigate the impact of the COVID-19 crisis for society. The joint automotive industry code of conduct will make a real difference in this process,” said Sigrid de Vries, Secretary General of CLEPA.

“We are committed to emerge from the crisis even stronger, and all partners in the value chain have a shared responsibility in managing the industry re-launch in a sustainable way. The code of business conduct gives manufacturers and suppliers essential guidance on the approach needed to overcome the COVID-19 crisis,” said Eric-Mark Huitema, Director General of ACEA.

13.8 million Europeans work in the directly and indirectly auto industry. As a consequence of the crisis, more than 1.1 million automobile manufacturer employees are on temporary leave, with a multitude of colleagues affected in the supply chain as well as dealerships. The loss of revenue is estimated to run into double digit percentages and uncertainty remains high as to how quickly the sector can recover. Industry, in close coordination with public authorities is seeking to gradually restart manufacturing in the next few weeks.

As stipulated in the code, COVID-19 represents a global health, societal and economic challenge with severe potential impact on individuals, corporations and countries. The minimisation of risks for employees and the community at large should have always highest priority. Navigating the COVID-19 crisis together in a spirit of partnership, in compliance with the applicable competition laws, yields the best possible results towards protecting individuals and minimising economic damage.

 

CODE OF CONDUCT

 


About CLEPA

  • CLEPA represents over 3.000 companies and over 20 national associations and sector associations
  • Automotive parts and system suppliers provide state-of-the-art components and innovative technology solutions for safe, smart and sustainable mobility, investing over 25 billion euros yearly in research and development.
  • Automotive suppliers in Europe employ overall nearly five million people across the continent.
  • More information about CLEPA can be found on www,clepa.eu or https://twitter.com/CLEPA_eu.

Contact: Clara Guillén, Communications Manager, c.guillen@clepa.be, +32 2 743 91 20.

 


About ACEA

  • ACEA represents the 16 major Europe-based car, van, truck and bus manufacturers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Fiat Chrysler Automobiles, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, PSA Group, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
  • The ACEA commercial vehicle members are DAF Trucks, Daimler Trucks, Ford Trucks, IVECO, MAN Truck & Bus, Scania, Volkswagen Commercial Vehicles, and Volvo Group.
  • More information about ACEA can be found on www.acea.be or www.twitter.com/ACEA_eu.

Contact: Cara McLaughlin, Communications Director, cm@acea.be, +32 485 88 66 47.