ACEA

The automobile industry is the largest private investor in R&D in the EU

The automobile industry is the largest private investor in R&D in the EU

The €20bn or so spent every year on R&D is a measure of the European automobile industry’s commitment to competitiveness, innovation, employment and social responsibility. The investment amounts to 4% of the industry’s annual turnover, and covers around one fifth of Europe’s total private R&D expenditure.

A large part of the R&D investments is spent on technologies to reduce emissions of greenhouse gases such as carbon dioxide (CO2), improving engine efficiency and performance. Another considerable slice is devoted to making cars as safe as possible – and in the last 15 years they have become significantly safer. Companies are continuously developing new car models, trying to maximize customer satisfaction.

Large sums of R&D expenditure are committed to joint, pre-competitive strategic research organized by the European Council for Automotive R&D – EUCAR, the research arm of the European Automobile Manufacturers Association (ACEA). EUCAR members are many of the major European motor vehicle manufacturers: BMW Group, DaimlerChrysler, Fiat, Ford of Europe, Opel, Porsche, PSA Peugeot-Citroën, Renault, Volkswagen Group, Volvo.

On R&D, each of these automotive giants outspend most leading companies in other sectors. In 2005, for example, DaimlerChrysler spent € 5.649bn on R&D, Volkswagen just over € 4bn, BMW € 3.1bn, Renault €2.3 bn, Peugeot (PSA) €2.1bn, and Fiat €1.3 bn*. Looking at other sectors not a single oil and gas producer broke through the €1bn barrier and only two chemical companies (Bayer and BASF) did so.

*Statistics published by the European Commission

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