EC tables CARS 2020 action plan

With 12 million sector-related jobs the automotive industry is vital for Europe's prosperity and job creation. The automotive industry as a whole (automotive producers, supply chain and aftermarket, including thousands of SMEs) is of strategic importance to the European economy, representing 12 million direct and indirect jobs, 4 per cent of GDP and a €90 billion trade surplus (in 2011). This industry is the biggest private investor in research and innovation, spending around €30 billion annually.

Between 2007 and the end of 2012 new car registrations in Europe are expected to have dropped by over 3 million. This translates into a fall from 15.5 million to about 12 million units – making 2012 the worst year since 1995.

The EU needs to maintain a world-class car industry, producing the most energy efficient and safe vehicles globally and providing high-skilled jobs to millions. To make this happen, the European Commission has tabled the CARS 2020 Action Plan aimed at reinforcing this industry’s competitiveness and sustainability heading towards 2020.

The Commission proposes a massive innovative push by streamlining research and innovation under the European Green Vehicle Initiative. Co-operation with the European Investment Bank will be reinforced to finance an innovation boost and facilitate SME access to credit. An EU standard recharging interface will provide the regulatory certainty needed to facilitate a breakthrough for large scale electric car production.

Innovation in the automotive industry will also be stimulated through a comprehensive package of measures to reduce CO2, pollutant and noise emissions, to drive improvements in road safety and develop technologically-advanced intelligent transport systems (ITS).

In parallel, the Commission also proposes to address the immediate problems in the car sector. In response to a fall in demand on European car markets and plant closure announcements, the Commission will in November bring together car producers and trade union representatives and Ministers of Industry ahead the next Competitiveness Council to review measures for dealing with the present crisis in a co-ordinated way. The car industry is important throughout Europe and a European response is needed. This response should focus on addressing overcapacity, social and technological investment, as well as state aid and demand-side measures, followed by a discussion at the political level.