1. 1 2007 ACEA challenges Ivan Hodac Secretary General of ACEA AIA CR BoD Meeting Praha, 7th December 2006

2. 2 Summary ACEA current challenges CARS21 CO2 EURO 5/6 Transport Policy Pedestrian Protection Industry Design ACEA challenges ahead

3. 3... an industry and a product that are constantly under the spot in many areas:  Competitiveness of the sector  Environment (emissions, CO2, ELV, noise…)  Safety (e-safety, pedestrian, EuroNCAP…)  Mobility  Intellectual Property (design protection…)  Tax, etc. This means we are constantly under pressure and in the public arena ACEA represents...

4. 4 CARS 21 is a recognition by decision-makers that regulatory issues do affect competitiveness. ACEA priorities for CARS21 follow-up: Make sure that Better Regulation principles are effectively applied Implement Integrated Approach for Road Safety and reduction of CO2 emission and ensure full involvement of all relevant stakeholders (not like in the CO2 revised strategy) Obtain concrete support from EU Institutions and Members States Ensure roadmap is respected and all stakeholders deliver their share CARS21 follow-up priorities

5. 5 EC Communication to be published on 12 December 2006 Draft EC Communication + Overall closely follows the CARS21 final report, + Is balanced and focuses on multistakeholder responsibility in achieving CARS21 objectives, + Puts strong emphasis on the integrated approach for CO2 and road safety, but — Does not include the road map — Better regulation chapter is missing However, better regulation and integrated approach principles are not being respected by the legislator/ in practice in the legislative process: CO2, Euro5/6 Draft EC Communication on CARS21

6. 6 ACEA 1998 agreement: Part of 3 pillar strategy Sizeable contribution to Kyoto goals Industry average, diversity, competitiveness, employment External factors may influence progress European car industry achievements Unbroken trend of CO2 reductions Change in car park through technological advances, without backing of customer demand Adverse influences: Regulation Demand for safer, larger cars Low demand CO2 efficiency Economic circumstances Technological limits CO2

7. 7 DG ENVI draft Communication on revised strategy post-2008 Inter-service consultations Concern if industry will meet Commitments Recalls CARS 21 recommendations; “Comprehensive Approach” Excludes eco-driving and alternative fuels Infrastructure 120g target for 2012 through vehicle technology (in TA) Complementary measures maximum 5g:  Mandatory N1 targets (175g by 2012 and 160g by 2015)  GSI  MAC fuel efficiency  TPMS  Tyre rolling resistance Lightduty EEV standard Amended M1 labeling (extension to N1) Voluntary advertising code of conduct

8. 8 It’s time to focus on demand... CO2-based taxation of cars and alternative fuels: Clear market signal Large reduction potential …and to combine efforts, within an Integrated Approach: Availability of alternative fuels Consumer behaviour  CO2-related taxation Infrastructure adjustments Car technology  Cost-effectiveness CARS21, Energy Efficiency Action Plan Beyond 2008: Integrated Approach and CO2-related taxation

9. 9 Euro 5:  180mg/km NOx and 5mg/km PM;  28% and 80% reduction in diesel NOx and PM from Euro4  particulate filter technology; Euro 6:  80mg/km diesel & 60mg/km petrol NOx;  68% and 25% reduction in diesel & petrol NOx from Euro4  diesel deNOx technology; Commission justification has been questionable:  does not adhere to principles of better regulation & integrated approach to environmental policy;  not the most cost-effective measures;  cost of Euro 6 (i.e. €213 per diesel car) far lower than expert panel and industry estimates;  effect on fuel consumption and diesel market share reduction too low; Euro 5 & 6

10. 10 Strong political will for Euro 5 & 6 - EP & Council likely to agree first reading this year: –Euro 5 from 1 September 2009; –Euro 6 from 1 September 2014; Parallel Regulation implementing Euro 5 & 6 will provide details of: –access to information to repair and maintain vehicles; –longer durability testing of emission controls; –in-service conformity programs; –specific deNOx technology requirements; –on-board diagnostic systems; –new test reference fuels as market expands into biofuels. Euro 5 & 6

11. 11 Mid term review of WP on Transport Policy adopted in June More positive towards road transport: no longer modal shift but co-modality Strategy Paper, addressing various key topics for the automotive industry: Freight Logistics, Urban Transport, Energy Efficiency, Charging, ITS, Safety, Security Status: EP –Report in January 2007, Rapporteur: E. Barsi-Pataky (EPP) –Hearing in February 2007 (together with Freight Logistics) –Plenary Session April 2007 Council –Policy debate on 12 October – rather positive towards change –Conclusions in December 2006 (together with Freight Logistics) Transport Policy

12. 12 Current issues Commission intends to propose a Regulation on Pedestrian Protection, (enacting Passive Safety Measures for Phase 2, fitting of Emergency Brake Assist) Global Technical Regulation on Pedestrian Safety (GTR) In order to ensure the pedestrian protection measures comply with better regulation principles: Requirements of Phase 2 of the RPP should be feasible and should take into account the need for the automotive industry to have an appropriate lead-time between the publication date of the Regulation and its application to new type vehilces; Provisions of Phase 2 of the Regulation on Pedestrian Protection (Passive Safety Measures) and of the Global Technical Regulation should be harmonised. Pedestrian Protection

13. 13 Commission proposal to abolish design rights for spare parts (Sept 2004) EP in the process of adopting first reading opinion: votes in Legal Affairs Committee and Plenary expected in first half 2007 Study commissioned by EP concludes that safety is unrelated to design right protection. It finds that most design parts are relevant only for pedestrian safety. It suggests subjecting copy parts to the same requirements and tests as original parts using the new authorisation procedure of the Type Approval Framework Directive. No discussions in the Council currently due to existence of blocking minority (DE, FR, PL, CZ, SK) ACEA position remains unchanged: minimum 10 years design protection for spare parts Industry design

14. 14 2007 ACEA challenges CO2 Euro 5/6 Design protection Mobility Safety Only a competitive and healthy automotive industry can continue to prosper and innovate, and to contribute to European economies and sustainable mobility