Local view for "http://purl.org/linkedpolitics/eu/plenary/2004-10-25-Speech-1-080"
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"en.20041025.14.1-080"2
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".
Mr President, we have all seen the latest news about the large-scale job cuts that were announced a few days ago by a major automobile manufacturer. The Commission fully understands the worries and sympathises with the workers in Rüsselsheim, Bochum, Trollhättan and elsewhere. We are following these developments very closely using the Community competences that are available to us to facilitate better industrial conditions for the car industry in Europe.
It is up to the new Commission to take a position on the setting up of such a group. Commissioner Verheugen, or rather Vice-President-designate Verheugen, said at his hearing in front of you in the European Parliament that he is considering setting up such a group. I will certainly support him if he chooses to do so.
In conclusion, the Commission is doing its utmost to offer the best possible industrial and innovative framework conditions for the car industry, for the European automotive industry. We need to further develop dialogue in the sector with the main stakeholders involved. Moreover, we must revise the Lisbon strategy of growth and employment to revitalise economic dynamism and to strengthen consumer demand on our continent. Growth and employment must indeed be put centre stage in all Union activities.
The sector's difficulties stem partly from the general economic downturn over the past few years. The low GDP growth rate in the EU has had its repercussions on the car industry too. Thus we have seen a decline in sales of motor vehicles and a decline in employment in the automotive industry. Therefore, improving general consumer confidence and economic dynamism is also crucial for the demand and sales of cars. Competitiveness, economic reform and new industrial policy are now high on the political agenda of the Commission and will receive even more focus in the new Commission. We shall also soon learn how Mr Kok proposes to revise the Lisbon strategy to put more weight on higher growth and better job creation.
In order to be able to better assess the competitiveness of the car industry the Commission has launched a study that we will publish in a few weeks time in the context of our annual competitiveness report. The study shows that the automotive industry contributes 6% to our manufacturing employment and 7% to manufacturing output in the Union, making it a major driver in the European economy. Its added value and employment have, however, declined between 2000 and 2002. A similar development in employment took place in the US and Japan.
Our analysis of Europe's strengths reveals that, due to the large home market, the European motor vehicle industry is well positioned to exploit economies of scale. Moreover, due to the sophisticated demand, EU manufacturers get advance feedback from their customers, which helps them improve product quality. Furthermore there is a high innovation capacity and research and development spending amongst the European automotive industry is at least as high as, or higher than, that in the US and Japan.
In terms of weaknesses, EU productivity is still lower than that in the US and Japan. Furthermore there is slow growth in the European home market, which means that as other markets continue to grow the demand advantages from the large European market may diminish over time.
Compared to the current level of productivity in the Union, the level of labour costs presents a serious challenge for the car industry in some Member States. Labour costs per hour in the European Union are still somewhat below those in the United States but significantly higher than those in Japan and especially Korea. We can best compete if we can offer better quality, better technology and better services that come with a car. This underlines the importance of innovation. As has been shown by some manufacturers, an agreement can also be reached with the workforce, aimed at reducing costs.
For this to happen there has to be a common understanding between management and the workforce as to what objectives are to be achieved. Such agreements make sense if they can be used to save employment, to keep manufacturing locations and to make the car industry more competitive.
With regard to threats, our studies see a danger that major innovations are not stimulated by European regulations. Future regulation must therefore take into account the long-term competitiveness of the car industry and the need for manufacturers to be able to sell their products and similar products in Europe and on the whole world market. This must be addressed by policies of better regulation, which is a major challenge for both of us, the Commission as well as for Parliament.
The Commission is currently considering setting up a high-level group to analyse major challenges affecting the automobile sector and to identify ways and means to improve the industrial framework conditions in the sector. This high-level group should also focus on the cumulative impact of legislation on the sector's competitiveness."@en1
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