Tough CO2 legislation must be matched by support for the automotive industry

The European automotive industry will continue to contribute to the ambitious European energy and climate change strategy and is ready to meet the CO2 legislation for passenger cars, endorsed by the European Parliament yesterday.

In light of the current  financial  and  economic  crises,  the auto manufacturers reiterate their urgent  call  on  EU  governments  and  institutions to support short and long-term  automotive development and manufacturing in the EU, ensuring a vibrant, innovative industry in the heart of Europe.

  "If  the  Council  follows the Parliament's vote, as they are expected to do,  Europe  has  adopted  an extremely tough piece of legislation", said Christian  Streiff,  President  of  ACEA  and CEO of PSA Peugeot Citroën.  "This legislation forms part of the ambitious European energy and climate change  package.  We  are committed to do what we can to deliver, despite the  sudden,   dramatic  economic  downturn  that  severely  limits our  resources. We ask for governments to support the strategic auto sector in  these extraordinary circumstances."

  The   CO2  legislation  gives  the  automobile  industry  some  essential flexibility  to adjust its development and production cycles to the legal requirements   and  to  limit  the  financial  risks  caused  by  largely unpredictable  factors  including  consumer  preferences,  market trends, economic   developments  and  legal  requirements  in  different  fields.  "However,  and  despite  the  modifications  to  the original legislative proposal,  the penalty of EUR 95 per excess gramme of CO2 remains extremely high compared to the price of CO2 in other sectors", added Streiff.

  The  legislation  requires  the industry to continue to invest heavily in  R&D  and new product programmes in order to reach the short-term targets.  Furthermore,  the  long-term  CO2  target  set  by  the  EU  will require  technological  breakthroughs,  new  refueling  infrastructure and a swift renewal of the car fleet on Europe's roads.

  The current economic situation hampers the European automobile industry's  ability to allocate the required resources. Apart from funds for R&D, the  sector  needs  a  functioning  financial  market  and  a  range of market incentives  to restore consumer demand. "The industry reiterates its call  for  EUR 40  billion  in  low-interest  loans", said Ivan Hodac, Secretary  General  of  ACEA.   "The  allocation  of  EUR  16  billion by the European  Investment  Bank  to  the  transport  sector,  plus  the stimulus package  proposed  by  the  Commission  and the various measures taken by national  governments  are  welcome  steps. But given the capital- and engineering-  intensive  nature  of  our  industry  and  the significant new regulatory  challenges facing us, more will be required."

 The   European   automotive   industry   is   key  to  the  strength  and  competitiveness  of  Europe.  The ACEA members are BMW Group, DAF Trucks,  Daimler,  FIAT, Ford of Europe, General Motors Europe, Jaguar Land Rover,  MAN  Nutzfahrzeuge, Porsche, PSA Peugeot Citroën, Renault, Scania, Toyota  Motor  Europe,  Volkswagen  and  Volvo. They provide direct employment to more  than  2.3  million people and indirectly support another 10 million  jobs.  Annually,  ACEA  members  invest  €  20  billion  in R&D, or 4% of  turnover.

The European Automobile Manufacturers Association (ACEA), founded in 1991, represents the interests of the fifteen European car, truck and bus manufacturers at EU level.