EC Details New Strategy for European Car Sector

February 8, 2007 // Published as a news service by IHS

The main areas covered by the communication are:

1. Internal market
2. Regulatory simplification
3. Increased safety
4. Trade and overseas markets
5. Research and development

1. Internal market: type-approval to be extended to all vehicle categories
New car models entering the market must be approved by a certified type approval institution in EU member states on a mandatory basis (there are three categories of vehicles - passenger cars, motorcycles and tractors). The review conducted in CARS 21 concluded that the current EC Whole Vehicle Type-Approval system was effective, should be maintained and that most of the legislation was necessary and useful. As the EC believes that the current type approval system should be maintained and its benefits extended to cover more automotive products (such as light commercial vehicles, buses and trucks), it proposed to extend the EC Whole Vehicle Type-Approval procedure to all vehicle categories on a mandatory basis.

Furthermore, the EC believes that the internal market should function more efficiently once the vehicle has reached the market. Because problems with roadworthiness and registration procedures are still a source of concern for citizens and enterprises, the EC intends to make it easier to import second-hand vehicles from other member states.

2. Regulatory simplification and internationally recognised rules
One of the reasons for setting up CARS 21 was the concern expressed by the industry that the cumulative cost of regulation had a negative effect on competitiveness and made vehicles unnecessarily expensive. At the outset of the CARS 21 group, the industry raised concerns about the high cumulative cost of legislation. The CARS 21 group identified 38 EC directives that can be replaced with international regulations from the United Nations Economic Commission for Europe (UN/ECE) regulations without any loss in the level of safety and environmental protection (see below). This makes manufacturers more competitive on a global scale, as only one regulation is necessary internationally. In addition, the CARS 21 group also identified one directive that could be repealed and 25 directives and UN/ECE regulations where self-testing and virtual testing could be introduced so as to reduce regulatory compliance costs for industry by making administrative procedures less costly and time-consuming.

Directives to be proposed for replacement by UN/ECE regulations:
- 70/157/EEC (sound levels)
- 70/221/EEC (fuel tanks)
- 70/311/EEC (steering effort)
- 70/387/EEC (door latches & hinges)
- 70/388/EEC (audible warning)
- 71/127/EEC (rear visibility)
- 71/320/EEC (braking)
- 72/245/EEC (radio suppression)
- 74/60/EEC (interior fittings)
- 74/61/EEC (anti-theft and immobiliser)
- 74/297/EEC (protective steering)
- 74/408/EEC (seat strength)
- 74/483/EEC (exterior projections)
- 75/443/EEC (speedometer/reverse gear)
- 76/756/EEC (installation of lighting)
- 76/757/EEC (retro-reflectors)
- 76/758/EEC (lamps)
- 76/759/EEC (direction indicators)
- 76/760/EEC (rear registration plate lamps)
- 76/761/EEC (headlamps)
- 76/762/EEC (front fog lamps)
- 77/538/EEC (rear fog lamps)
- 77/539/EEC (reversing lamps)
- 77/540/EEC (parking lamps)
- 77/541/EEC (seat belts)
- 8/316/EEC (identification of controls)
- 2001/56/EC (heating systems)
- 80/1269/EEC (engine power)
- 89/297/EEC (lateral protection)
- 92/22/EC (safety glass)
- 92/23/EC (tyres)
- 94/20/EC (couplings)
- 95/28/EC (flammability)
- 2001/85/EC (buses and coaches)
- 96/79/EC (frontal impact)
- 96/27/EC (side impact)
- 98/91/EC (transport of dangerous goods)
- 2000/40/EC (front underrun protection)

Directives to be proposed for self-testing:

EC directives:
- 70/222/EEC (rear registration plate)
- 77/389/EEC (towing hooks)
- 78/316/EEC (identification of controls)
- 78/317/EEC (defrost/demist)
- 78/318/EEC (wash/wipe)
- 78/549/EEC (wheel guards)
- 92/21/EEC (masses & dimensions, cars)
- 97/27/EC (masses and dimensions)
- 92/114/EC (external projections of cabs)

UN/ECE regulations:
- 28 (audible warning)
- 48 (installation of lighting)
- 121 (identification of controls)
- 122 (heating systems)
- 43 (part on installation of safety glass)
- 55 (couplings; only for geometric requirements)

Directives to be proposed for virtual testing:

EC directives:
- 77/389/EEC (towing hooks)
- 77/649/EEC (forward vision)
- 78/318/EEC (wash/wipe, for geometric requirements)
- 78/549/EEC (wheel guards)
- 92/114/EC (external projections of cabs)

UN/ECE regulations:
- 46 (for the field of rear vision)
- 21 (for the geometric requirements of interior fittings)
- 26 (exterior projections)
- 48 (installation of lighting)
- 55 (couplings; only with regard to geometric requirements)

3. Increased safety on European roads
Significant progress has been made in improving European road safety over the last 30 years. Traffic on European roads has tripled while the number of casualties has halved during the same period. The ever-greater mobility enjoyed by Europeans comes at a high price though - latest estimates show that about 41,600 people were killed on European roads in 2005. The EC's stated aim is to achieve a 50% reduction in deaths on European roads by 2010.

The new EC communication proposes a number of vehicle-related actions, with the inclusion of the electronic stability control and Isofix child restraint systems obligatory in new vehicles being the most significant. Besides the EC's legislative proposals for the retrofitting of mirrors to heavy goods vehicles with the aim of avoiding blind spots, the EC intends to do the following:

• Make the use of daytime running lights and seat-belt reminders obligatory.
• Investigate the costs, benefits and feasibility of introducing emergency braking systems in vehicles (particularly heavy-duty vehicles).
• Continue efforts to promote the development of active in-vehicle safety systems in the framework of the i2020 Intelligent Car Initiative.
• Adopt the third eSafety communication aiming at full deployment of eCall starting from 2010.
• Call on member states to further improve the enforcement of the drunk driving ban, speed limits, motor-cycle helmet use and seat belt use.

4. Trade and overseas markets: striving for fair global competition
Most of the increase in global demand over the next decade will come from rapidly developing economies (such as China, India, Russia) and the international dimension is crucial to the competitiveness of the European automotive industry. With regard to future policy direction, the EC will:

• On a case by case basis, assess the potential of negotiating bilateral free trade agreements with third countries (particularly in South East Asia) and open such negotiations, if and when, appropriate.
• Continue monitoring Chinese business and regulatory developments.
• Continue building closer automotive ties with Russia.
• Continue its policy of ensuring that IPR are promoted and enforced globally through existing international agreements.
• Include comprehensive IP provisions in future bi-lateral agreements.

5. Research and development
With approximately €20 billion (about 5% of the sector's turnover) invested into research and product development, the automotive industry is the largest industrial R&D investor in Europe in absolute terms. The new EC communication identifies clean, renewable fuels and vehicles plus intelligent vehicles and roads as core research priorities.

The EC believes that it is necessary to focus European research in the Seventh Framework Programme (FP7) on both incremental research (such as technologies for clean, energy-efficient thermal engines and integrated safety systems) and on breakthrough technologies (such as hydrogen and fuel cells, development of rechargeable hybrids, and second-generation biofuels). Furthermore, the EC considers that the creation of lead markets in areas relevant to this sector is important (for example, hydrogen, fuel cells and biofuels could be potential candidates).

The EC will:

• Continue to develop R&D co-operation between the EU and industry (primarily through FP7) and to reinforce research collaboration between the EU, the member states and the automotive industry, including collaborative projects and networks of excellence.
• Focus research programmes placing particular focus on clean, renewable fuels as well as intelligent vehicles and roads (such as the "intelligent car" project in the framework of the i2010 initiative).
• Aim to use public-private partnerships as a new instrument of industrial research, technological development and demonstration.
• Continue discussions with the automotive industry on the possibility of setting up joint technology initiatives (for example, in the area of hydrogen and fuel cells).
• Encourage European financing institutions, such as the European Investment Bank, to continue supporting research in the automotive sector.

Source: European Commission.