Musing about strategic value chains or being fit for new paradigms

With last week’s green light for the envisaged commissioners Thierry Breton (internal market) and Adina-Ioana Valean (transport), two key figures have entered stage. Both will be heavily involved in the transition of mobility and industry triggered by environmental needs, technological progress and anticipated new consumer demand and habits.

in CLEPA, by Sigrid de Vries, 19-11-2019


The hearings – or ‘grillings’ as some rather call it — in the European Parliament revealed a deep awareness of the complexity of the task ahead. Both commissioners-designate pledged to work with the two executive vice-presidents, Frans Timmermans (green deal) and Margrethe Vestager (digital age), as well as with the other commissioners destined to be closely involved with parts of the work: environment, taxation, employment, innovation, trade. There is a strong realisation that no one actor can deliver on their own.

Both Breton and Valean also emphasised the need for a strong industrial pillar to achieve the monumental challenges facing society such as decarbonising Europe’s economy by 2050, requiring the transport sector to reduce CO2 emissions by 90%. That same competitive industrial pillar is needed to maintain and claim leadership in high-tech, data-driven businesses and services that will power, amongst others, connected and automated mobility.

More on this you can find in the CLEPA vision paper on the future of mobility and industry, on which the association will hold a landmark event in Brussels on 4th December with industry CEOs and high-level politicians.

Ursula von der Leyen’s team is bound by the ambition to deliver fast: a law on climate and artificial intelligence in the first 100 days in office. The stakes are set on a renewed willingness for Europe to join forces and work together, because relying on national capacities is not enough to pull weight at the huge levels required. Europe, too, must reassert itself in the global arena where other powers seem intent to adjust the rules of the game.

Against this backdrop, it was interesting to see the report ‘Strengthening Strategic Value Chains for a Future-ready EU Industry’, published by the Strategic Forum for Important Projects of Common European Interest, an expert group set up by the European Commission in 2018 composed of member states, industry and the research community.

Like in the title of the report and name of the forum, many of today’s trigger words can be found in the paper itself: technological sovereignty, strategic autonomy, security, systemic presence.

The six ‘strategic value chains’ identified are connected, clean and autonomous vehicles; smart health, low-CO2 emission industry; hydrogen technologies and systems; industrial internet of things; and cybersecurity. These come on top of three, on which joint initiatives are already running: the European battery alliance, a joint undertaking on high-performance computing and a project of common interest on microelectronics.

Many of the report’s conclusions mirror policy objectives laid out in Von der Leyen’s policy priorities: investment in deployment and adoption of technologies, pooling of public and private funding and other resources, prioritisation of research, education and skills, removing the remaining barriers to the Single Market and – perhaps ‘newest’ and most important of all: strategic cooperation at all levels due to the complexities and the importance of scale.

The recommendations in the report are carefully wrought and the underlying analysis is clearly invested in the daily realities of industries like the automotive supply sector. It is no coincidence that five of the six selected areas heavily involve the mobility industry, as do the already existing three. The automotive industry is system critical to the European economy and in the midst of the transition to climate neutrality and a data-driven economy.

As a consequence, automotive suppliers too are rethinking the architecture of the traditional value chain. Suppliers used to be organisers of a fairly vertical process of materials, parts, components and systems. Today, this traditional ‘chain’ no longer exists. Suppliers operate in an eco-system – a network of interdependent and interlinked actors — with increasingly diverse and numerous players, and with increasingly direct links to the ‘end-user’ as well, the individual or business using mobility to move from A to B.

Challenges around available and secure infrastructures, protection of critical technologies, access to raw materials and availability of skilled people add to the mix. And so do the global trade tensions and economic slowdown

The most recent CLEPA Pulse Check amongst its member companies showed an almost unanimous expectation of a economic downturn, and 90% of respondents said to be undertaking specific measures to prepare for a more difficult business environment. To put this into perspective: European automotive suppliers hold an impressive 40% of global revenue in the sector. They are leading in many technologies and are well-placed to compete. Yet they are reassessing and repositioning, evaluating scale and market relevance, scouting for partnerships and burden sharing, fostering start-ups on the go.

“Seizing the opportunities of the ongoing transformation requires new approaches and new solutions”, says the foreword by outgoing Commissioner for internal market and industry, Elzbieta Bienkowska, writing with industrial policy in mind. It is the search for new solutions that preoccupies the minds of many these days. All with the aim to be fit for a world with new paradigms.

 

Comprehensive and carefully managed transformation key to sustain industry competitiveness

CLEPA, together with the European Forum for Manufacturing, held a dinner debate at the European Parliament yesterday, focusing on the policy measures required to ensure the sustainability and competitiveness of the sector in the transformation to safe, smart and sustainable mobility.

in CLEPA, 07-11-2019


The dinner-debate “Future of mobility: Striving for sustainable growth” hosted by Member of the European Parliament Nicolás González Casares, from the ITRE (Industry, Research and Energy) Committee, was attended by several MEPs, the European Commission and industry representatives, among others.

The need to prioritise industrial strength and deliver a carefully managed transformation to successfully decarbonise and digitise the economy was stressed by various speakers. Industry highlighted the role of new technologies to provide a safer, cleaner, smarter and more diverse mobility. Automotive suppliers are providing innovative technology solutions to reduce greenhouse gas (GHG) emissions from transport by improving the internal combustion engine (ICE) and electrification of the powertrain in its various forms (mild, full, plug-in hybrid, full battery-electric and fuel cells) as well as through the use of low and zero carbon fuels. Moreover, improvements in manufacturing technologies and the re-use of materials add to a coherent framework for sustainability as well.

Roberto Vavassori, CLEPA President, argued for the EU to develop a competitive regulatory framework to ensure that Europe leads the world with new technologies, accompanied by a skilled workforce and supported by innovation. “It is important Europe takes the lead in a match, rather than sailing around the world in a solo race.”

Vavassori emphasised the magnitude of investment in clean, safe and smart technology delivered by industry and stressed the need for a comprehensive approach to effectively reduce emissions generated by transport in order to factor in the complexity of mobility needs as well as allow for a level playing field between the various technology options. “The industry therefore supports the work that is currently undertaken on behalf of the Commission to develop a methodology for life-cycle analysis (LCA), and agrees that strengthening the EU emissions trading scheme (EU ETS) is an important tool towards achieving the common goal of a carbon neutral economy.”

The second part of the evening focused on how the transition to the world of new mobility must be accompanied with a strategy to secure a skilled and competent workforce for the future, as well as with measures giving special attention to SMEs. CLEPA is involved in the European Project DRIVES, presented during the event, which evaluates the skills that will be needed for the sector, detecting, analysing and evaluating best practices for automotive skills training and education in different EU member states, developing and implementing strategies to address skills gaps. SMEs are crucial building blocks of the value chain and hence key in the transition to new mobility as well. Access to training, research and innovation programmes must be supported with targeted framework conditions.

 

 

EU Automotive leaders unite to say “no” to ‘no deal’ Brexit

  • Europe’s leading automotive representatives warn of catastrophic consequences of a ‘no deal’ Brexit.
  • Barrier-free trade crucial for continued success of the deeply integrated pan-European auto sector.
  • Application of WTO tariffs on cars and vans could mean €5.7bn bill for EU/UK industry and consumers.
  • Sector calls for no-deal to be ruled out to safeguard the future of European automotive.

in CLEPA, 23-09-2019

Monday 23 September 2019- With just over one month to go before the UK is due to leave the EU, the European automotive industry today made a united call for the UK and the EU to avoid a ‘no deal’ Brexit. The lead organisations representing vehicle and parts manufacturers across the EU, the European Automobile Manufacturers Association (ACEA) and European Association of Automotive Suppliers (CLEPA), as well as 21 national associations, including the Committee of French Automobile Manufacturers (CCFA), the German Association of the Automotive Industry (VDA), and the Society of Motor Manufacturers and Traders (SMMT), joined forces to stress the impact a ‘no deal’ Brexit would have on one of Europe’s most valuable economic assets.

The automotive industry is one of the EU’s biggest success stories and contributors to growth and wealth, producing 19.1 million vehicles a year and employing 13.8 million people across the wider sector – one in 16 of the EU’s workforce.1 Fundamental to this has been the deeply integrated nature of the industry, which has sought to maximise single market and customs union benefits to the advantage of businesses EU-wide.

European industry chiefs today warned that the repercussions of ‘no deal’ to this vital sector will be severe. The UK’s departure from the EU without a deal would trigger a seismic shift in trading conditions, with billions of Euros of tariffs threatening to impact consumer choice and affordability on both sides of the Channel. The end of barrier-free trade could bring harmful disruption to the industry’s just-in-time operating model, with the cost of just one minute of production stoppage in the UK alone amounting to €54,700 (£50,000).2 Meanwhile, WTO tariffs on cars and vans could add €5.7 billion (£5 billion) to the collective EU-UK auto trade bill,3 raising prices for customers if manufacturers cannot absorb the additional cost. Automotive manufacturers believe that such disruption and cost must be avoided, and that all effort should be made to deliver an orderly withdrawal of the UK from the EU.

Christian Peugeot, CCFA President, said, “Brexit is not just a British problem, we are all concerned in the European automotive industry, and even further. Be it as exporters to the UK market or producers locally, which we are both, we will inevitably be negatively affected.”

Bernhard Mattes, VDA President, said, “We regret Brexit. The United Kingdom is a fully integrated player in the value chain of the German Automotive Industry. More than 100 production facilities as well as research and development located in the UK prove our commitment to the UK-market as a number one market in the EU. In the view of the German automotive industry, therefore, everything has to be done to maintain the free movement of goods, of services, the freedom of capital and the freedom of movement for workers between the UK and the EU. At the same time, we acknowledge that the internal market and the cohesion of EU27 are a priority and a pre-condition. “The EU and UK automotive industry need frictionless trade and would be harmed significantly by additional duties and administrative burden on automotive parts and vehicles. Consequently, the UK and the EU should undertake all necessary steps to avoid a no-deal Brexit.”

Mike Hawes, SMMT Chief Executive, said, “European Automotive is deeply integrated and the benefits of free and frictionless trade have helped our sector become one of Europe’s most valuable assets, delivering billions to economies and supporting millions of livelihoods across the EU A ‘no deal’ Brexit would have an immediate and devastating impact on the industry, undermining competitiveness and causing irreversible and severe damage. UK and EU negotiators have a responsibility to work together to agree a deal or risk destroying this vital pillar of our economies.”

Erik Jonnaert, ACEA Secretary General, said, “Barrier-free trade is crucial for the continued success of the deeply integrated European auto industry, which operates some 230 assembly and production plants right across the EU. Brexit will have a significant negative impact on the automotive sector and a ‘no deal’ Brexit would greatly exacerbate those consequences, causing massive disruptions to an industry which is so vital to Europe’s economy. Even the repeated need to plan and implement contingency measures to deal with a disorderly Brexit is highly disruptive to our members. The European automobile industry therefore calls for all sides to rule out a no-deal scenario as soon as possible.”

Sigrid de Vries, CLEPA Secretary General, said, “The European automotive industry is operating highly integrated global supply chains. A single vehicle consists of around 30,000 parts many of which cross borders multiple times. Frictionless and tariff-free trade, as well as regulatory certainty, is vital. Brexit has a negative effect on all these aspects. Brexit, specifically a no-deal Brexit, will be seriously damaging to the supplier’s industry in Europe and the UK and must be avoided.”

European automotive is highly integrated, with supply chains that cross multiple countries. A no-deal Brexit would immediately result in the UK no longer being party to EU trade agreements and preferential arrangements with some 30 countries, including Turkey, South Africa, Canada, Japan and South Korea, and content from UK suppliers would no longer contribute to EU originating content for the purposes of rules of origin. This will potentially make it harder for European manufacturers to access the preferential terms of agreed EU trade deals. In addition, a no-deal Brexit would immediately make the EU market smaller, and potentially less attractive to international trade partners.

At this time of intense global competition and technological transformation, EU and UK automotive manufacturers need a Brexit outcome that maintains free and frictionless trade and allows them to continue to invest, produce and sell competitively, and that encourages cross-border technological collaboration. This will drive future innovation, benefitting consumers, societies and economies right across Europe. With so much at stake, it is in the interest of all parties to avoid a no-deal Brexit and deliver a managed withdrawal of the UK from the EU.

Mario Armero, ANFAC Executive Vice President, said, “Spain is mainly a net exporter of vehicles to the European Union. The Spanish automotive industry sells two thirds of its production outside our frontiers. The United Kingdom is one of the main markets for these sales and, since Brexit was voted, exports have fallen exponentially. The establishment of tariffs and trade barriers worries us and harms the competitiveness of our factories and the development of our highly integrated supply chains. A ‘no deal’ Brexit will further worsen this trade and harm the entire production chain, in Spain and in Europe.”

Gianmarco Giorda, ANFIA Director, said, “The UK is the third destination market for parts and components for motor vehicles and the fourth for cars, therefore, it is relevant for the Italian industry, especially for component suppliers who represent an important interlocutor for the local manufacturers. The introduction of new customs tariffs, longstanding procedures and so higher prices could only have a devastating effect on the automotive industry, both for the Italian and for the British ones.”

Mattias Bergman, BIL Sweden Chief Executive, said, “Sweden and our automotive industry is a strong believer in free trade where a barrier free market is crucial for the automotive industry to continue to contribute to society and economic growth within Europe. Brexit by itself is negative for the industry and a ‘no deal’ will add substantial risk and will have large negative impact on not only the industry, but the entire Europe.”

Claude Cham, FIEV President, said, “At a time when the global economy is slowing down with volume decrease in our industry; and our entire eco-system is focused on the major challenge with new mobility, the ‘no deal’ Brexit would bring significant loads without values, neither for the states nor for the citizens nor for industries. Common sense tells that global competitiveness is directly linked to the size of a market of which the United Kingdom in the EU is of prime importance. This is even more important for the United Kingdom itself, which would be de-facto relegated out of one the world’s largest markets. The ‘no deal’ Brexit will also directly affect Europe’s ability to respond to its own environmental challenges and its global leadership on the issue by weakening its domestic market irrigated by its strong internal market.”

Fredrik Sidahl, FKG Chief Executive, said, “The EU with the base foundation of peace has over the years become a true region of automotive industry. For Sweden as a part of EU and extremely dependent on export, EU is the main market. Among all the states in EU, the UK is one of our core individual markets for vehicles and components and we must, by all means avoid a hard bauxite both for Sweden but also for Europe. Automotive and the flow of parts and research programs are linked together, and a divorce between the UK and EU will dramatically change this for the worse.”

Luc Chatel, PFA President, said, “Brexit will have a huge impact on the whole automotive sector in France, on manufacturers as well as on suppliers. The impact will be direct in terms of tariffs, customs procedures, logistics, industrial localisation decisions, etc. And there will also be an indirect impact, as for all economic sectors, because of the foreseeable downturn in the European growth.”

Alfred Franke, SDCM President, said, “A ‘no deal’ Brexit plus troubling symptoms of a slowing world economy, global trade tensions between United States and China as well as challenges facing our industry could lead to serious downturn in European automotive industry – one of the most important industries in the EU. Therefore, every effort should be made to ensure that the UK’s exit from the European Union is preceded by an appropriate deal that will protect us from a potential catastrophe.”

 

The 23 Automotive Association signatories include:

  • ACAROM – Romanian Association of Automobile Builders https://acarom.ro
  • ACEA – European Automobile Manufacturers Association www.acea.be
  • AFIA – Portuguese Manufacturers Association for the Automotive Industry www.afia.pt
  • AIA – Czech Automotive Industry Association www.autosap.cz
  • ANFAC – Spanish Association of Car and Truck Manufacturers www.anfac.com
  • 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
  • FIEV – French Federation of Vehicle Equipment Industries www.fiev.fr
  • FKG – Scandinavian Automotive Supplier Association https://fkg.se
  • FFOE – Austrian Association of the Automotive Industry www.fahrzeugindustrie.at
  • ILEA – Luxembourg Automotive Suppliers Association https://www.ilea.lu/
  • OSD – Turkish Automotive Manufacturers Association www.osd.tr
  • PFA – French Association of the Automotive Industry www.pfa-auto.fr/
  • SDCM – Polish Association of Automotive Parts Distributors and Producers www.sdcm.pl
  • RAI – Dutch Association for Mobility Industry https://raivereniging.nl
  • SMMT – Society of Motor Manufacturers and Traders  www.smmt.co.uk
  • SERNAUTO – Spanish Association of Automotive Suppliers http://www.sernauto.es
  • TAYSAD – Automotive Suppliers Association of Turkey www.taysad.org.tr
  • VDA – German Association of the Automotive Industry www.vda.de

 

Notes to editors

 

  1. Motor industry employees account for 6.1% of total EU employment. Source:acea.be/statistics/tag/category/key-figures

 

  1. Delays to the arrival of components would cost gross value of £70 million a day based on five day working week. This equals £50,000 a minute. Source: smmt.co.uk/wp-content/uploads/sites/2/2019-UK-AUTOMOTIVE-TRADE-REPORT.pdf

 

  1. Tariffs – UK exports to EU27 on WTO terms:

 

Passenger cars Light commercial vehicles/pick ups Commercial vehicles Buses Engines                  (in vehicles) Parts
10 10 22 16 2.7 2 – 5

 

Source: https://madb.europa.eu/madb/euTariffs.htm

 

Temporary Tariffs – UK imports

 

Passenger cars Light commercial vehicles/pick ups Commercial vehicles Buses Engines Parts
10 10 22 16 0 0

 

Source: https://www.gov.uk/government/news/temporary-tariff-regime-for-no-deal-brexit-published

 

 

 

 

 

 

 

CLEPA Press Release- Future As We Move: European automotive suppliers launch sector’s vision on the future of mobility

CLEPA “Future As We Move” vision paper underlines the powerful strategies deployed to reduce road casualties and limit the environmental impact of people and goods transport, reaping the potential of vehicle connectivity and automation.

in CLEPA, 19-09-2019


CLEPA, the European Association of Automotive Suppliers, today launches the sector’s vision on the future of transport and industry, to support and inspire the dialogue with all stakeholders in pursuit of new mobility.

Underlining the importance and impact of the mobility transformation triggered by environmental needs and empowered by data and digital solutions, the industry’s vision outlines how European suppliers are a driving force in shaping tomorrow’s mobility landscape, working in close cooperation with vehicle manufacturers, high-tech companies, regulators and other stakeholders.

The vision paper describes four main pillars of transformation in the coming years and decades, demonstrating that mobility will be:

  • Safe, to ensure zero casualties on the road by 2050
  • Sustainable, with increased electrification and a minimised environmental impact
  • Smart, enabling connectivity and autonomous driving
  • Powered by a competitive industry, strengthening European technology leadership

Sigrid de Vries, CLEPA Secretary General: “Society demands change and looks for innovative solutions to deal with air pollution, urbanisation, traffic congestion and the growing demand for mobility as a service. These realities are redefining the automotive industry at an unprecedented pace. The CLEPA vision paper, mandated by the top of the sector’s leading companies, outlines the technology-driven solutions that suppliers bring to the fore as well as highlights how policy can best support.”

“Our vision is an optimistic one, without neglecting the multiple challenges to existing business models, manufacturing sites and people. Our paper shows how Europe can sustain its global leadership position by harnessing the power of innovation, strengthening its economic fabric and leveraging the close cooperation of legislators at all levels local, national and European, as well as cross-border.”

“Automotive suppliers are fully focused on the huge opportunities of the systemic change that is unfolding. Realising a future of zero casualties, zero emissions as well as seamless and accessible mobility for all, will require a joint effort by all stakeholders in the mobility revolution, and new players and new alliances will come along. Suppliers embrace and enable the change. We advocate for an agile, supportive policy framework that embraces and enables the innovation needed to bring about the mobility of tomorrow.”

 

“Future as we move” publication can be downloaded at www.futureaswemove.eu

 

 

 

 

Parliament adopts ambitious new CO2 standards for trucks

The European Parliament formally adopted today the first-ever EU Regulation on CO2 emission standards for heavy-duty vehicles. Manufacturers will have to reduce average carbon emissions by 15% by 2025 and by 30% by 2030, compared to 2019. The Parliament confirmed the targets set forward by the Commission in its legislative proposal, which will be challenging for the industry to achieve. Much will depend on the Commission quickly updating the VECTO simulation tool to account for innovative emission-reduction technologies.

in CLEPA, 18-04-2019


Sigrid de Vries, Secretary General of CLEPA, the association of automotive suppliers, commented on the vote: “Automotive suppliers are contributing actively to meet the objectives of the Paris agreement. CLEPA supports the setting of clear emission targets by the EU, although it will be challenging to achieve them for all actors involved. European trucks are already the most efficient in the world. While transport of goods has increased by over a third since 1995, emissions have barely risen. This shows how much pressure the market already exerts towards more efficient vehicles.”

The regulation on CO2 standards for heavy-duty vehicles is linked to VECTO, the tool for the simulation and certification of heavy-duty vehicles’ emissions. Only the efficiency gains that can be certified by VECTO are taken into account in the simulation of a vehicle’s emissions. Currently, the scope of VECTO only covers the tractor and a limited number of drivetrain technologies. Only once the tool will have been upgraded to take into account efficiency gains from new technologies — such as hybridisation and or trailer components — will the associated potential to reduce emissions will be unlocked. “For the regulation to efficiently achieve emission reductions, an approach is necessary which looks not only at the efficiency of the vehicle tractors but also the trailers, as well as facilitating the deployment of low carbon synthetic fuel,” explained de Vries, adding: “A comprehensive, swift, and regular upgrade of VECTO will be a key criterion for success and bring the ambitious targets of the regulation closer within reach. The Commission is tasked to deliver.”

The Regulation also includes, until 2025, a “super credit” system as a positive incentive for the deployment of zero- and low-emission vehicles, rewarding manufacturers starting from the very first zero- or low-emission vehicle placed on the market. From 2025 onwards, a minimum sales quota of 2% for zero- and low-emission vehicles will replace of the super credit. De Vries commented: “Automotive suppliers support the principle choice for a positive incentive system to pull new technologies into the market.” The Parliament was also instrumental in introducing a differentiation of the definition of low-emission vehicles per vehicle sub-group. This is expected to facilitate the development of low-emission vehicles across the entire fleet, says de Vries: “It is important to push for the development of low-emission vehicles in long-haul transport. Given the high mileage in this segment, the potential for reduction of emissions is substantial.”

Similar to the Regulation for cars and vans, the Commission is required to assess the feasibility of developing a methodology to assess heavy-duty vehicle emissions over the entire life-cycle. De Vries: “Automotive suppliers have always supported the step forward to well-to-wheel or life-cycle analysis, which should help levelling the playing field for different drivetrain technologies and take into account emissions embedded in energy production.”
The Council is also expected to formally adopt the Regulation shortly.

 

 

Parliament formally adopts important update of vehicle safety standards

The European Parliament today adopted the revision of the General Safety Regulation (GSR) during its final plenary session. The GSR will make mandatory a set of safety measures for vehicles over the coming years. The agreement should soon be approved by the Council, paving the way to a quick implementation of life-saving technologies. The Parliament will also vote tomorrow on the implementation of Cooperative Intelligent Transport Systems (C-ITS), another important text for road safety.

in CLEPA, 16-04-2019


“Today’s vote is excellent news. The EU demonstrates a strong commitment towards improving safety on Europe’s roads. After essential technologies such as seatbelts and airbags, the GSR will represent the next big leap, with solutions that help avoiding accidents in the first place,” said Sigrid de Vries, Secretary General of CLEPA, the association of automotive suppliers. The Parliament supports all the safety technologies put forward by the European Commission in its legislative proposal. “We salute that the Parliament decided to move the final vote ahead of the elections, allowing for a swift implementation,” added de Vries.

Automotive suppliers are providing active and passive safety systems with technically and economically mature innovations for all vehicle categories. However, the current EU vehicle safety standards were last updated almost a decade ago. The agreement confirmed the inclusion into the revised Regulation of all proposed technologies, including tyre-pressure monitoring systems, intelligent speed assistance, accident data recorders, and direct vision standards for trucks, which will be progressively made mandatory for new vehicles over several years.

According to the impact assessment accompanying the proposed legislation, over 16 years, the revised GSR is expected to reduce the number of road casualties by 24,794, avoid 140,740 serious injuries, and provide an overall net benefit for society of €15.4 bn, considering lives saved and additional costs. The Regulation will accelerate the deployment of effective and cost-efficient safety measures, which are already available on the market, and will boost the competitiveness and global leadership of the European automotive industry in this sector. De Vries: “Most safety systems are developed and supplied in Europe. New safety requirements will therefore push forward European research and innovation, contributing to generate growth, jobs, and investment in the EU. They will also pave the way towards connected and automated driving, by increasing the market penetration of technologies that will be required for automated vehicles in the future.”

The next milestone for road safety: the C-ITS Directive

In addition, the European Parliament will decide tomorrow on another essential piece of legislation paving the way towards connected and automated driving, which could also have an important impact on road safety. MEPs are considering whether to reject a delegated act related to the Directive on Cooperative Intelligent Transport Systems (C-ITS). The delegated act allows for the immediate deployment of applications and systems based on the internationally recognised ITS-G5 standard, a mature technology tested in large fleets and infrastructure projects. Many of its applications are related to safety, and could significantly improve upon the GSR’s mandatory technologies. For example, emergency braking and intelligent speed assistance would greatly benefit from connectivity. Rejecting the delegated act may lead to an implementation delay of two to three years at minimum, according to the European Commission. “CLEPA encourages MEPS to vote against the resolution rejecting the delegated act and in favour of a pragmatic approach to technological progress,” said de Vries.

Next steps

The Council of the European Union is now expected to formally adopt the GSR soon. Member States already confirmed their support for the text at COREPER level on 29 March.

 

Electrification and connectivity reshape the business into a service over the entire lifetime of the vehicle

CLEPA 10th Aftermarket Conference

in CLEPA, 28-03-2019


  • New business models are gaining ground, transforming the traditionally very stable automotive aftermarket 
  • New automotive services require the fair, undistorted, unmonitored and competitive access to in-vehicle data

More than 300 participants gathered at the 10th edition of the CLEPA Aftermarket Conference, today in Brussels, to discuss the latest trends and opportunities for the automotive aftermarket at a crucial time for industry.

In her keynote speech, Sigrid de Vries, Secretary General of CLEPA, highlighted:

“Driven by electrification, digitalisation and connectivity, new business models are gaining ground, reshaping the traditionally very stable automotive aftermarket from a repair and maintenance business into a services business over the entire lifetime of the vehicle. This will fundamentally change the face of this key part of the automotive suppliers’ activities. The CLEPA Aftermarket Conference is the leading event in this field in Europe and the place to meet for automotive suppliers, policy makers and other stakeholders. The opportunity to exchange views and learn about the latest legislative and technological developments in the sector is more relevant than ever. ”

As expressed by multiple speakers from industry and market analysts, the connectivity of vehicles and the utilisation of vehicle-generated data will trigger new services and business. Driven by the mandatory eCall regulation, connectivity in new vehicles has now become standard. A fundamental prerequisite to participate in this new emerging mobility market is the fair, undistorted, unmonitored and competitive access to in-vehicle data, of course with the consumer’s consent.

Frank Schlehuber, CLEPA Senior consultant Market Affairs commented:

Both connectivity and the expected substantial increase of electrified vehicles will disrupt the traditional aftermarket value chain. The way in which connectivity or, more specifically, the communication from and to a vehicle is realised, has a major impact on the competitiveness of market participants and the speed of development and implementation of innovative mobility services.”

“Especially the strong growth of BEVs will lead to a stagnating or even declining market for traditional wear and tear parts in mature markets. In combination with the ongoing consolidation of the wholesale distribution and the initiatives of vehicle manufacturers to either invest in the independent aftermarket or to increase significantly their share in the services market, adds further cost pressure on suppliers.”

The European Commission presented on the latest regulatory developments. With the new type approval requirements published in 2018, EU legislators have strengthened the independent aftermarket by securing access to electronically processable vehicle equipment information as well as securing the on-board-diagnostics functionality. With the upcoming revision of the motor vehicle bloc exemption regulation (MVBER) beyond 2023 and the revision of the repair clause, the European Commission has opened discussions that will be crucial for the future of the independent aftermarket.

The Conference also debated how to find and keep the right talent to participate in this dynamic part of the automotive business. After an introduction by recruitment consultancy Korn Ferry on the dimensions of leadership, a lively panel followed suit with representatives from suppliers, distributors and participants from other industries.

In an exhibition, open to all participants of the CLEPA Aftermarket Conference, the companies Schaeffler, Continental and Caruso Dataplace, jointly demonstrated a fully digitalised process to allow fast and efficient repair and maintenance of vehicles in the independent aftermarket. The exhibition also included a display showcasing the future of repair workshops in a connected world, presenting how the share of vehicles’ telematic data through a digital marketplace enables optimised logistics & repair processes, as well as higher consumer satisfaction.

CLEPA Innovation Awards 2019: Call for applications now open

CLEPA Innovation Awards recognises the excellence of the automotive supplier’s industry in the fields of Environment, Safety, Cooperation and Connectivity & Automation

Innovative applications can enter the contest until 29th March 2019

in CLEPA, 30-01-2019


The 4th edition of the “Innovation Awards” will be an important milestone in the 60th anniversary of CLEPA, acknowledging the important contributions from the automotive supplier´s sector in making mobility sustainable, safe and smart.

Automotive suppliers play a key role in innovating and adapting the automotive industry to meet new global societal challenges and regulatory requirements. Only in 2018, European automotive suppliers have invested more than 22€ billion in R&D, contributing to new technologies and systems for an ever-higher performance in terms of safety, sustainability, connectivity and seamless mobility.
Innovation is key to support the competitiveness of the European industry, and automotive suppliers are committed to remain the global leader in the development of emerging technologies, services and mobility solutions.

CLEPA would like to recognise the excellence of the industry, awarding the innovative achievements on the fields of Environment, Safety, Cooperation and Connectivity & Automation. Deloitte, the management consultancy partners up with CLEPA again to stress the achievements of the sector.
CLEPA now invites automotive suppliers from the whole value chain, from large corporations, SMEs and also start-ups to submit their contributions to the 4 different categories.

The call for applications will be open until the end of March, and the applications received will be assessed, by an excellent jury of international experts on the different fields, that will evaluate the ambition, market relevance, impact and quality of the applications. The selected candidates will be exemplary for the solutions provided today by automotive suppliers for tomorrow’s mobility challenges.
The awarded innovations and companies will be revealed during the CLEPA Innovation Awards 2019 ceremony, that will take place in Brussels, on the evening of 13th June.

The deadline for applications is the 29th of March 2019.

 

https://clepa.eu/events/clepa-innovation-awards-2019/

 

 

CLEPA | Outlook on 2019 – Watch this space

The year 2019 promises to be a challenging year for many European automotive suppliers. The global economy is slowing down, most pertinently in China and Europe. Global trade tensions are aggravating matters. And the new EU CO2 emission targets, which are causing dramatic shifts in the vehicle manufacturers’ new-car portfolios, are beginning to bite hard at many a supplier’s side too.

in CLEPA, by Sigrid de Vries, CLEPA Secretary General, 31-01-2019


 

Certainly: alternative powertrain solutions offer chances for new business as well – there is a lot of European technology in a Tesla. But the volumes aren’t yet there to match the drawback in other areas. A similar story can be told of the, in itself highly-promising and increasingly sought-after, new-mobility solutions for connected and automated driving. The march is definitely on, but investment precedes revenue as volumes are still developing.

 

This doesn’t mean sentiment is bad. Automotive suppliers are champions in adjusting to new product- and market opportunities. They are at the forefront of new technology and mobility developments, and dealing with cyclical economic developments as well as ‘uncertainty’ is ingrained in their DNA. Automotive suppliers always strive for new openings and opportiunities.

 

Yet, some of the forces currently at play, do cause concern. Take the global trade disputes and Brexit: here’s a marked disruption of the integrated value-chain that has helped the automotive supply industry be the innovators and technology leaders they are today. The effects are potentially long-lasting. Many of the relocation and investment decisions taken by customers and suppliers in recent time will be irreversible, no matter the actual outcomes on the global stage.

 

Or, take the new CO2 emissions reduction targets set for cars and vans. It’s not that the direction wasn’t clear, or the technology unavailable. Automotive suppliers have in fact been advocating ambitious reform. But the timing, volumes and preferences that shape a new market were unclear – and still are, to a large extent, in the absence of charging infrastructure and knowledge of how consumers will respond.

 

Now, however, the suppliers’ first and foremost customers (read: car manufacturers) are responding. And they do not merely ‘shift’ their production plans; it’s in many cases more like a rupture: sudden and vast. The ‘disruption’ that this signifies, might be applauded from a need-for-change perspective – leaving aside the admittedly rhetoric question if ‘electric’ truly is the only solution to decarbonising transport and mobility.

 

But the disruption this causes, is painful at economic and societal level, exactly because of the fact that a rupture in demand for one and the dramatic ramp-up of production of another solution is an enormous challenge to manage without any damage: a negative impact in terms of costs, job losses, skills shortages and investment write-offs that would be avoided by going the more harmonious path of a transformation, without necessarily giving up on ambition.

 

So what does this mean for 2019? Adjustments by and in the industry. Close coordination with customers and societal stakeholders. Competition for new markets, both in Europe and in other geographies. Beating the macro trends with targeted strategy; building on key competencies, innovative power and a deep understanding of the longer-term direction that mobility of people and goods will take.

 

In Brussels, it’s going to be a transition year moving from one Commission and Parliament to another. Industry still hopes to make as much progress as possible with pending files – General Safety regulation, Heavy-duty CO2 emissions, Multi-annual Financial Framework, to name just a few – before the European elections in May. At so-called working level, the shaping of policies for pollutant emissions reduction and access to data will surely continue. In Geneva, UN-ECE will progress its important work on highly-automated vehicles.

 

CLEPA, the association, celebrates its 60st anniversary in 2019, and will launch a ‘white book’ on the future of mobility to mark that feat. Sixty years of shaping our automotive landscape and now driving the transformation to new mobility. What bright future is in stock? What does the automotive supply community have on offer? Watch this space!

 

 

Innovation is key to preserve Europe´s leadership in the mobility sector

CLEPA, together with the European Forum for Manufacturing, hosted a dinner debate at the European Parliament yesterday, focusing on the importance of innovation for preserving and boosting European leadership in the mobility sector.

in CLEPA, 06-12-2018


The dinner-debate “Driving innovation forward” hosted by Members of the Parliament John Procter and Andor Deli, was attended by several other MEPs, European Commission officials and industry representatives, among others. The two winners of the CLEPA 2018 Innovation Awards – Plastic Omnium in the category Environment and Bosch in the category for Safety — were among the speakers that highlighted the benefits of continuous investment in research and development.

 

Innovation is crucial in the mobility sector as it contributes to sustainable and efficient transport and supports European competitiveness. Over the last years, European automotive suppliers have invested more than €22 billion per annum in innovative technologies putting them at the forefront of developments.

 

Innovation is closing the gap to achieve society’s 2050 environmental and safety targets. Automotive suppliers support a holistic approach that rewards innovation and efficiency and brings synergies between technologies, policies, infrastructures and sectors. Safety innovations are an equally essential and rich avenue for development, contributing to support Europe´s industrial competitiveness.

 

CLEPA organises the yearly Innovation Awards competition, that recognises the accomplishments made by European automotive system and component manufacturers in the areas of Environment, Safety, Connectivity, Automation and Cooperation.

 

Sigrid de Vries, CLEPA Secretary General commented: “It is increasingly important to develop new technologies and systems for an ever-higher performance in terms of safety, sustainability, connectivity and seamless mobility. Companies largely carry these investments themselves, injecting substantial revenues back into their product development. However, support from funding programmes remains highly important to boost pre-competitive and collaborative research involving universities, research organisations, industry, SMEs, and other actors research. Here, Europe can continue to play an important role in support of global leadership.”

 

On his opening speech, MEP John Procter highlighted “There is clear need for supporting R&D In Europe. The development of research, supply, processing and production strategies into light-weight component construction developments is crucial for advancement in a low-carbon transition in the automotive sector”. Also, MEP Andor Deli commented “technology neutrality must prevail, based on a ?well-to-wheel? approach on vehicle emissions. There is a request to the European Commission to propose a methodology for this by the end of 2022” also, he subscribed the importance of having an innovation strategy on the CEE countries that “aims to attract the research and development teams of the automotive OEMs for not just traditional but also autonomous driving”

 

——————————————————————–

More information about CLEPA Innovation Awards here

2018 Awarded innovations brochure 

Videos from the winners in our YouTube channel

 

The policy papers and pictures from the event will be available next week at the European Forum for Manufacturing website   http://www.euromanuforum.com/