ACEA

Q&A with Ivan Hodac, Secretary General of ACEA

Q. What prompted the auto industry to create ACEA?

A.  A recognition by the leading automobile companies in Europe of the need to join forces to engage with the institutions and processes of what was then known as the European Community. The year was 1991 and the EC was well on the way to achieving the goals of its 1992 single market programme. This programme was aimed at removing technical and other barriers to the successful operation of a genuine internal market. It was clear that the European Commission, the Council and the European Parliament would have a key role in policing and regulating the single market.

As one of Europe’s most important and heavily regulated industries, auto manufacturing had to be represented in Brussels and take part in that process. Automobile manufacturers were and are often asked to provide their specialist knowledge needed to draw up EU legislation. Closer integration and EU involvement in complex economic, social, technical and legal issues has made our presence here indispensable. Unfortunately for the auto industry, the single market has still not been fully achieved yet.

Q.  What do you mean?

A. We still have different taxation rates in the Member States which has a distorting effect on the EU market for cars. And there are still variations in enforcement by the Member States of regulation such as the directive on End of Life Vehicles that regulates the recycling of cars.

Q. People say that the automobile industry has too much power. What do you think?

A. Many very inaccurate statements are made on this subject. If we had the influence that many people say we have, quite a few policies would not have been adopted in the way they have been in recent years. For example, the EU has just adopted very tough targets for reducing CO2 emissions from cars.

Two things seem to be often forgotten: the first is that our industry is vital for the European economy. More than 12 million families depend on us for employment, 2.3 million directly and 10 million in related sectors. Our net auto exports are worth €42.8bn. Vehicle taxes deliver €378 bn.  Society must be very careful not to jeopardize our competitiveness and investment capacity because there will be an economic and social price to pay if they do.

Secondly, many of the positions we take are complemented, reinforced or challenged by non-governmental interest groups and other organisations, as they should be in democratic systems. A sound legislative process takes into account the valid interest of all involved and weighs the arguments and consequences in their full context.

Q. How would you describe your contribution to EU decision-making?

A.  I do not see how it can be anything but positive. Through our specialist working groups and access to expertise of every kind in our member companies, we can offer knowledge, judgment and technical input that is rarely matched elsewhere. We make this available to legislators, regulators and Member States and by doing so we may help to improve the quality of decision-making and of lawmaking. Indeed, it is perfectly obvious to regulators and legislators that they need practical, sensible and realistic input from all stakeholders to enable them to do the best of jobs.

Q. Who are your members?

A. They are the sixteen major European car truck and bus manufacturers who work together to communicate as effectively as possible with all stakeholders. These stakeholders are not just the legislative and regulatory parts of the EU but also auto industry suppliers such as tyre and equipment manufacturers as well as fuels producers and environmental and road safety organisations. We are members of a large and varied community of interests.

Q. How do you make decisions?

A.  After thorough consultation between our members. The senior decision-making body is the Board of Directors made up of the CEOs of our member companies. One of these CEOs acts as President for one year and his term may be renewed for a further 12 months. Decisions of the Board are prepared by a Joint Committee, chaired by the Secretary General and composed of senior executives from member companies.

Crucial input into decision-making is provided by around 25 working groups made up of experts from member companies. These focuses on a wide range of technical and other issues and provide invaluable information and judgment to the Joint Committee and the Board.

Q. Does the industry take its social responsibilities seriously? A.  Very seriously. Our members invest heavily in corporate social responsibility initiatives to the benefit of their employees and society-at-large. We are keen for people to know that our products meet the highest environmental and safety standards and that this is based on a long-standing tradition of innovation and investments. For example, it takes 100 of today’s cars to match the average emissions of a car built in the 1970s. Noise levels have been reduced by 90% over the same period. On the safety front, the introduction of seatbelts, anti-braking systems and airbags has cut fatalities and serious injuries to vehicle passengers by 80%. Acting as a responsible corporate citizen is not only desirable in itself; it also helps to build a relationship based on trust and loyalty between companies and their customers. Q. What are the priority issues you are currently dealing with? A.  The list includes block exemption rules, exhaust emissions limit values for cars and trucks, CO2 emission reductions, road safety action plans, EuroNCAP requirements and trade issues. There are also pedestrian safety, the E-Safety initiative, recycling requirements and mobility and congestion charging. Q. And what would you say are your priority goals? A. No fewer than seven immediately come to mind

 
1. As I have already mentioned, real completion of the Internal Market has still to be achieved, and will not be without fiscal harmonisation of motor vehicle and fuel taxes. In light of the CO2 challenge, taxation schemes should be based on the CO2 emissions of cars and the use of alternative fuels, to increase demand for fuel-efficiency.
 
2. Reducing over-regulation and conflicting objectives of legislation via adequate and independent impact assessment studies, and reasonable lead-time periods for implementation.
 
3. Better promotion of R&D efforts and innovation policy instruments.
 
4. Global harmonisation of technical regulations and standards for motor vehicles.
 
5. Continuous development of efficient road infrastructure, while ensuring the promotion of competitive access to basic infrastructure networks (road, energy, transport, telecommunications)
 
6. Better market access for European automotive products via the completion of the WTO’s Doha Development Agenda and together with some bilateral/regional free trade agreements.
 
7. Adoption of an Integrated Approach to important societal issues such as road safety and the reduction of CO2 emissions, involving all relevant parties in sharing efforts, achieving better results.

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