Le Parlement promeut les « emplois verts » dans le secteur automobile[en] 

Demand for cars across Europe has slumped dramatically in recent months, with a 19.3% year-on-year fall in new car sales recorded in the final quarter of 2008. Double-digit reductions were seen in Iceland, Ireland, Italy and the UK. The industry expects vehicle production to further contract by 25% in 2009.

The response of several key member states has been to prop up indigenous industries, raising concern at the European Commission about creeping protectionism. 

A cross-party motion for a resolution adopted yesterday (25 March) maps out the effects of the economic crisis on the European car industry. 

The sector employs 12 million European workers directly, but also has a "multiplier effect for other sectors and industries," particularly for SMEs, which form part of the manufacturing chain for the finished product, MEPs state.

The car industry ranks among those hit hardest by the economic downturn. Registrations for new cars fell by 30.9% in January, according to manufacturers, and sales have declined for ten months in a row. 

The Parliament is thus calling on the European Commission to ensure "the best use of European funds available in support of jobs" to train and retrain workers. It states that governments should provide the industry with faster and simpler access to financial aid by guaranteeing low-interest loans.

Moreover, the resolution urges member states to increase the lending capacity of the European Investment Bank (EIB), in particular to provide funding for SMEs.

Indeed, investment in the automotive sector does not just benefit big companies, but trickles down to smaller suppliers too, Françoise Le Bail, deputy director-general at the EU executive's enterprise department told EurActiv in an interview (EurActiv 24/03/09). She said the EIB had not been quick enough to release funding in the past, but banks were now in a better position to do so.

MEPs were also keen to promote the role of green technologies in creating new jobs, driven particularly by the EU's new climate legislation agreed in December. They requested the Commission to draw up guidelines for scrapping schemes and other incentives that encourage coordinated fleet renewal.

'No' to protectionism

The resolution calls on the EU to deepen dialogue with third countries to prepare a level-playing field for European manufacturers. Refraining from protectionist measures is crucial for the recovery of the global market, and therefore the Commission should keep a close eye on developments in the US and Asia, MEPs said.

In Europe, too, the Parliament observes some risk in measures taken at national level, which they fear could be detrimental to long-term competitiveness by distorting competition in the single market. They consequently urge member states to coordinate all future measures to make sure they are efficient.

Fears of protectionism have arisen throughout Europe as thousands of workers are being laid off (EurActiv 04/02/09). Most notably, French President Sarkozy's suggestions that French carmakers might have to buy specific amounts of parts from domestic suppliers to be eligible for government loans raised alarm in Europe in February. Under pressure, the French have since backtracked on their plan (EurActiv 01/03/09).

European car manufacturers welcomed the European Parliament's initiative. Vehicle manufacturers' trade association ACEA welcomed MEPs' recognition that the crisis in the industry had primarily been caused by the credit crunch and slumping demand, the effect of which outweighed structural issues. According to ACEA, the industry is competitive, with turnover of €550 billion and strong commitments to technological leadership.

"The automotive industry is essential to the EU economy. It is the engine of the manufacturing industries, one of the biggest employers in Europe, the largest investor in innovation and R&D and a formidable export force," said Ivan Hodac, ACEA secretary-general.

MEP Jorgo Chatzimarkakis (ALDE, Germany), the initiator of the resolution, said Europe needed to respond to the crisis, but with certain restrictions. "There should be no state shareholding, but only state guarantees for loans to private investors. The guarantees should be clearly linked to the new environmental targets that we set at EU level."

"The automotive industry's importance is strategic but not systemic. Manufacturers must realise that the State cannot always come to their rescue. That is why any state intervention has to be thoroughly evaluated," he added.

MEP Gianluca Susta (ALDE, Italy) called for action on three fronts. "First, we need incentives to substitute those cars that are no longer compatible with the new environmental requirements. Secondly, we have to realign the car industry and the car market, also with information campaigns, towards greener technologies. Finally, the EU should renegotiate at WTO level the terms of trade with countries like Japan, South Korea, India and even China," he said.