A total of 1,001,579 commercial vehicles have been shifted so far this year with Britain more than playing its part after 17 consecutive month-on-month rises [link].

Spain was the only European country contract overall during the first half of 2011 (-8.4%) while data from Italy, Malta and Cyprus was unavailable.

Light Commercial Vehicles made up the bulk of CV sales with 826,268 LCVs being sold between January and the end of June. This marked a 9.4% increase on the number of LCVs sold this time last year.

The French have flogged the lion’s share with 222,722 units while the UK claimed runner-up with 133,238 units.

Unrivalled

Heavy CVs (16 tonnes or over) have also performed well so far this year, selling 119,745 which equated to 55% more than in the first half of 2010. This was helped by the UK’s unrivalled performance in this sector, with a growth of 64% on last year.

26,187 CVs over 3.5 tonnes were also sold before July, marking an increase of 21.3%.

Bus and coach registrations were the only CVs to report a weaker performance on the first half of 2010 with a contraction of 14.3%.

Earlier this month, Paul Everitt, SMMT Chief Executive, commented on the strides taken by CV sales in Britain.

He said: “June saw the 17th successive monthly rise for new van registrations, up by 13% in the month, demonstrating business confidence and commitment in the commercial vehicle market.

“Truck figures also rose, up by 7%, the ninth successive monthly rise. Again, articulated trucks saw the most robust growth in the month and year-to-date figures for almost every sector were up significantly on 2010.”

During the general assembly – attended by David Cameron and Vince Cable – ACEA President Dieter Zetsche noted the UK Government’s healthy attitude in regards to automotive innovation but also took the opportunity to stress the importance of ‘fair play’.

“It is first and foremost the responsibility of the automobile manufacturers to ensure competitiveness, and we pursue that goal head-on,” said Zetsche, also the Head of Daimler AG.

“But some issue are beyond our reach, whereas governments do play an important role.”

Other items discussed included a call for government support to bring the swift introduction of breakthrough technologies and less bureaucracy through lean regulations.

Zetsche added: “Our industry must and will further ensure that our products are world class. What we ask from governments is to ensure that the game is fair. It is our collective responsibility to make sure that Europe prospers for a long time to come.”

Flourish

The conference demonstrated a growing recognition for the UK’s automotive industry, reckoned Business Secretary Vince Cable.

He said: “Car makers are boosting their investment in Britain. Nissan will design and develop the new Qashqai in the UK and BMW is building the new generation of MINI here as well as putting £500m into their UK manufacturing operations.

“These decisions show the strength and competitiveness of our automotive sector, the skills base that drives our economy and the ambition of the business community to secure long-term growth, which we are taking every available step to support.”

Prime Minister David Cameron added that his Government is determined see the automotive industry flourish.

“We want to do everything we can to encourage that by reducing our rates of corporate tax and setting up the Regional Growth Fund, which is assisting a number of automotive companies,” he concluded.

Paul Everitt, Chief Executive of the SMMT, agreed: “New investments demonstrate the commitment of international investors, safeguard thousands of jobs and open up opportunities for companies at all levels of the supply chain.

“Industry and government must continue to strengthen our partnership to maintain and increase investment in vital areas of R&D, skills and capital equipment.”

The ACEA represents some of the biggest manufacturers at European level such as Fiat, Volvo, Renault, Jaguar Land Rover, Ford, Toyota, and now Hyundai whose ACEA membership will take effect from January.

Chang Kyun Han, President of Hyundai Motor Europe GmbH, said: “We are delighted that Hyundai Motor Europe’s application to join ACEA has been formally approved.

“As a significant European automobile manufacturer, Hyundai looks forward to contributing fully to ACEA’s important work in Brussels.”

In line with the pledge not to introduce new, costly regulation during the crisis, the European Commission should have handed over this important legislative dossier to the next Commission team that will be working with the new European Parliament. “Our economies are on life support. The automotive industry — and in particular the commercial vehicle industry — is still suffering from a continuing credit crunch and a depressed economy. Policy makers must deliver on the balancing act between environmental and economic priorities”, said Ivan Hodac, Secretary General of ACEA.

Demand for new light commercial vehicles has dropped by 34.4% this year and by 47.3% in the case of heavy trucks. The commercial vehicle sector depends entirely on the economy to recover in order to see sales pick up again and generate the revenues necessary to invest. “The European manufacturers will further deliver significant CO₂-efficiency improvements to market despite the austere economic and financial conditions”, added Hodac. “To continue doing so, the industry needs a policy framework that enables it to perform best in the transition to a low-carbon economy. That is both an environmental and an economic interest for the EU.”

The proposal presented today must become much more tailored to the specific vehicle segment concerned and take into account the major differences with passenger cars. “There is a focus on technologies regardless of the market situation or customer needs. There is not much consideration of the different uses of the vehicles concerned. That is a missed opportunity,” said Hodac. “EU policy makers should furthermore ensure sufficient industrial lead-time which is, at the moment, not foreseen.” Lead-time is essential to sustain investments and adapt vehicles at a reasonable time in their product cycle, keeping them affordable. Light commercial vehicles have a substantially longer development phase as well as product cycle than passenger cars.

Policy makers are urged to perform a thorough analysis of the proposal’s impact on the economy, employment and the environment, in particular with regard to the long-term target. Penalties should be based on the carbon price in the European Emission Trading Scheme. Furthermore, a comprehensive package of market incentives would help ensure that fleet renewal takes place, especially in an economically depressed market.

The Commission announced changes today in a Communication on the so-call Block Exemption Regulation for the sector while extending the current regime for vehicle distribution with three years.

“The ACEA members agree with the Commission that competition on the motor vehicle market is at least as intense, if not more intense, as in other sectors.  We also agree that this effect stems mostly from general rules of competition law. Therefore, there is no reason to maintain a separate, stricter and more complex legal regime for distribution agreements in the automotive sector”, said Ivan Hodac, Secretary General of the auto industry’s trade association ACEA.

Car manufacturers share the Commission’s view that competition on the markets for motor vehicle distribution and servicing has intensified. Consumers benefit from this fierce competition: they have access to a wide product offer and a dense network of highly qualified service providers at very competitive prices.

Developments regarding the functioning of the internal market have been equally positive.  Price differences between Member States have narrowed significantly despite the distorting effect of various sales and registration taxes that exist in many Member States.

Applying a less detailed, less prescriptive and more flexible legal framework will help manufacturers and their sales and service partners to further improve distribution and servicing concepts, reduce costs and enhance efficiency. Manufacturers will continue to work closely with the EU institutions and other stakeholders to ensure the most appropriate framework for the upcoming changes.

An Italian national, Miglioli has studied economics and politics of European integration before doing her master’s degree in European political studies at the College of Europe. She chose the topic of her thesis because of its high relevance for EU policy-making. “Impact assessment and sustainable development do not affect just one or two policy areas.  They are relevant almost everywhere,” she said. Miglioli has found that the use of impact assessment requires increased coordination between the different Directorates General of the Commission. She also estimates that stakeholders, the European Parliament and the Council will continue to expect improvements in impact assessment performance.

Ivan Hodac, secretary general of ACEA, congratulated the winner. “Chiara Miglioli has made an excellent analysis on an issue that is highly important for European policy-making,” Hodac said.  “Good impact assessment is central to delivering policies that take the needs of society on board.”

It is the fourth time that ACEA, the Brussels-based European Automobile Manufacturers’ Association, awards a College of Europe student for a thesis that shows academic excellence and investigates a dimension of EU regulation   and industry competitiveness without necessarily being automotive-industry specific.

The cooperation between the European Automobile Manufacturers’ Association and the College in Bruges is rooted in the mutual conviction that close understanding is essential between industry & business and the EU institutions, many of which recruit from the College of Europe. European integration is still work in progress. Continuous interaction between society’s decision makers is of utmost significance to preserve what has grown and draft effective regulation while avoiding unnecessary bureaucracy.

ACEA has come to the conclusion that the FIA needs a modernised and transparent governance system and processes, including the revision of its constitution, to ensure the voice of its members, worldwide motorsport competitors and motorists are properly reflected.

The ACEA members support the activities and objectives of the Formula One Teams Association to establish stable governance, clear and transparent rules which are common to all competitors to achieve cost reductions including a proper attribution of revenues to the F1 teams, in order to deliver a sustainable attractive sport for the worldwide public.

Unless these objectives are met, the BMW, Ferrari, Mercedes, Renault and Toyota along with the other teams are determined to find an alternative way to practice this sport in a manner which provides clarity, certainty of rules and administration, and a fair allocation of revenues to the competing teams.

The European commercial vehicle manufacturers call upon the European Union and Member States to push economic recovery by investing in the infrastructure of the future, restoring broad access to financing, ensuring a supportive regulatory framework and stimulating vehicle fleet renewal.

“This is not a normal cycle; we are experiencing the sharpest downturn ever. Governments must act to prevent the failing of viable businesses, and they must do so in a coordinated way”, said Leif Östling, CEO of Scania and chairman of the ACEA commercial vehicle manufacturers board, today in Leipzig at the International Transport Forum, a three-day conference gathering transport ministers from the EU. The Forum coincides with the EU Competitiveness Council, today in Brussels, which will assess crisis measures to support Europe’s industrial base.

The financial and economic crisis has triggered a marked drop in transport activity and subsequent sharp decline in demand for commercial vehicles. Order intake for heavy trucks stalled at 10,000 in the first quarter of 2009, compared to 100,000 a year ago. Adapting to the crisis, manufacturers expect commercial vehicle production to at least halve this year, putting great pressure on employment levels both at vehicle manufacturers and their suppliers.

“Progress towards sustainable mobility requires a thriving industry. In the current extraordinary economic and financial situation, however, the relative cost of the regulatory burden on our industry increases. This is an issue that must be addressed. The legislative framework should be carefully scrutinised”, said Östling. “Furthermore, there are many infrastructural and construction projects planned for the future that could be launched right now.” Investments in sustainable mobility, energy and telecommunications networks will stimulate the economy in a focused way. Referring to the European elections early next month, Östling added: “This is an issue that the new European Parliament should embrace as well.”

Governments must also act to restore the functioning of the financial system, said Östling. “The lack of credit is a particular problem in our industry. We have many customers that could show a valid business case for investing in new vehicles but are unable to finance these investments due to the overall lack of credit facilities.” Östling warned that the recession will lead to an aging vehicle fleet with negative environmental and safety repercussions. “This increases the need to make the overall transportation system more efficient and, for example, enlarge cargo capacity by allowing longer vehicle combinations on European roads. Governments should also introduce fleet replacement incentives across the EU so improving the environmental and safety performance of the vehicle fleet on the roads.”

For further information, please contact Sigrid de Vries, Director Communications ACEA +32 2 738 73 45 or sv@acea.be Please also visit www.acea.be

The European Automobile Industry Report 09/10 is available on www.acea.be

The European Automobile Manufacturers’ Association ACEA has published, today, the ‘European Automobile Industry Report 09/10’ and the accompanying leaflet ‘Automobile & Society – State of Affairs, Priorities of the Future’.

In its dialogue with policy makers, the European automobile industry focuses on four main areas: environment, mobility, market and economy, and the regulatory framework. “The commitment to solutions that tackle issues like climate  change and road safety remains at the heart of all manufacturers’ strategies”, write ACEA President Carlos Ghosn (Chairman and CEO Renault) and Secretary General Ivan Hodac in the foreword of the Industry Report. “However, innovation relies on a vibrant and competitive sector. A supportive EU policy framework, in crisis and in more normal times, boosts an industry that is vital to Europe’s economic well-being.”

The automotive industry is a sector of great strength and forms the backbone of the manufacturing industry in Europe. 2009 and 2010 will be crucial years as the global economy  has to overcome a gripping and damaging  recession. The degree to which the automotive sector will be prepared for future growth will depend in large part on the decisions taken by legislators today.

The automobile sector is one of the most regulated industries in Europe and while legislation helps set common rules and standards, ensuring fair market conditions, unnecessary complexity and costs must be avoided. The regulatory  framework should strengthen the sector’s competitiveness to enable the industry to continue contributing to economic growth, boosting mobility for millions and delivering the products that bolster road transport on its journey to a more sustainable future.

ACEA Secretary General, Ivan Hodac, welcomed the agreement as an important milestone in the ACEA activities in China. CAAM Senior Deputy Secretary-General, Shen Ningwu, agreed that the time was right to strengthen the cooperation between the two industry associations by establishing a more formal exchange mechanism.

CAAM as well as ACEA are committed to promoting the sound development of the automotive industry in China. CAAM, founded in 1987, is the Chinese nationwide association grouping enterprises and organizations engaged in the business of automotive, motorcycle, components and related industries. ACEA established a presence in China in 2004, to represent the shared views of its member companies on regulatory developments, towards Chinese stakeholders in government and industry.