A Parliament hearing on the competitiveness of the EU car industry on 6 October could end up giving European makers a bumpy ride as they strive to keep up with growing global competition.
Pressure on EU carmakers is mounting at the moment with the latest salvo coming on 5 October from the European Commission when it slapped a €49.5 million fine on French manufacturer Peugeot SA for barring dealers in the Netherlands from selling their products to consumers in other EU countries.
The move comes as the Commission is putting the finishing touches to a broader strategy to reform regulation of the European automotive sector that encompasses the whole supply chain, launched in October 2002.
Earlier, a proposal to liberalise the 10 billion annual spare parts market in September last year had met with stiff opposition from EU car makers (EurActiv, 6 Sept. 2004). More recently, the Commission issued new rules in a bid to end restrictions placed by carmakers on the location of dealer's showrooms. A chief objective there is to end carmakers' grip on markets and, over time, to lower prices for consumers.
But the Parliament hearing will mainly focus on progress made by a group of CEOs and politicians set up by the Commission to review the regulatory framework of the car industry. The group, called CARS 21, is meant to come up with recommendations to revise the EU's automotive regulatory framework and propose concrete measures to improve:
- economic competitiveness
- environmental performance
- road safety



