ETRMA welcomes EU's initiative to boost the automotive industry
The European Tyre & Rubber Manufacturers' Association (ETRMA) welcomes the publication of CARS 2020 Action Plan by the European Commission, which aimed at reinforcing the EU automotive industry's competitiveness and sustainability.
ETRMA estimates a 10% decrease in both sales and production of tires in 2012 and further downturn is expected next year. At the same time, increasing tire imports and regulations, in particular the new labeling system implemented on November 1 hit the EU tire market hard.
"This is a much awaited and positive step and it needs to be implemented urgently!" said Fazilet Cinaralp, Secretary General of ETRMA, upon EU's initiative. The Action Plan comprises concrete proposals for policy initiatives in order to:
- Promote investment in advanced technologies and innovation for clean vehicles;
- Improve market conditions;
- Support industry in accessing the global market;
- Promote investment in skills and training to accompany structural change and anticipate employment and skills needs
"With the EU tire market shrinking, the European tire industry keeps investing in research and technology, it is therefore our hope that this renewed commitment of the European Commission towards the automotive industry will make us stronger in the face of an economic downturn s that still continues." concluded Ms Cinaralp.
According to the Action Plan, the Commission proposes a massive innovation push by streamlining research and innovation under the European Green Vehicle Initiative. Cooperation 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.
European Commission Vice-President Antonio Tajani, Commissioner for Industry and Entrepreneurship, said, "Europe produces the best cars in the world. The Commission wants this leadership to be maintained, moving even further ahead in safety and environmental performance. The Commission is therefore today presenting a strategy for the EU automotive industry and will also take urgent action to address this sector's current difficulties and restructuring in a co-ordinated way."
The automotive industry as a whole represents 12 million euro direct and indirect jobs, 4% of GDP and a 90 billion euro trade surplus in 2011. This industry is the biggest private investor in research and innovation, spending around 30 billion euro annually.
"This automotive plan is the first fruit of the Commission's strategy for a new industrial revolution, presented on 10th of October. The automotive industry has all the assets to overcome current problems, remain competitive, become more sustainable and retain its manufacturing base in Europe. What is more, because of the multiplier effect it has in the economy, the car industry should provide a strong impetus to maintain a strong industrial base in Europe. The Action Plan will give the car industry all possible political support." Mr Tajani summarized.
