How can the European auto industry come back to course?
The European auto industry has 13 million jobs and accounts for 7.5 percent of the gross domestic product in Europe. But the sector has been under pressure for a long time. The Luxembourg Association of automotive suppliers Ilea, which belongs to the Fedil industrial association, calls on actions together with the European supplier Association CLEPA on Friday.
« European industry is struggling to remain competitive, » the associations write. But numerous regulations affect competitiveness. As a result, the associations demand concrete measures to defuse the situation.
« In recent years, the demand for cars and vans has decreased by 20 percent and global competition has intensified, » the associations write. The production of electric vehicles requires a lot of energy. But compared to the USA or China, energy prices in the EU are twice as high.
European industry is struggling to remain competitive.
Ilea and Clepa
Therefore an important point is that Reduction of energy costs and increase in incentives for research and development in order to obtain equal competitive conditions in vehicle production. A « long -term technology -neutral and market -oriented policy to accelerate decarbonization, promotion of innovations and recognition of PHEV's potential » should also be carried out. Because these plug-in hybrids (PHEVS) are particularly popular with customers. However, the regulation that no more burners will be allowed from 2035 have made the production of these vehicles into a « dead gass technology ».
According to the associations, excessive regulatory provisions that strain European industry with enormous costs for compliance with product regulations and the reporting without benefiting consumers should also be reduced.
