Finance to drive more environmentally cars should be doubled according to officials from the European Commission (EC), who highlighted the importance of Brussels’ CARS2020 and Horizon 2020 automotive initiatives.
Speaking at the recent European Automotive Congress in Bilbao in northern Spain organised by European Conference Management, EC deputy head of unit DG enterprise, industry mobility and automotive industry, Barbara Bonvissuto, said she wanted to see considerably more investment ploughed into the green side of the auto business.
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“CARS2020 looks at all policy areas that can have an effect on automotive industry,” said Bonvissuto in the Basque capital. “We need to provide access to finance.
“Horizon 2020 will be a green initiative and from the EC side, we want to double the money for that. Since 2008, EUR8bn (US$10.4bn) has been granted to the automotive sector by the European Investment Bank and the automotive sector is the largest industry in the lending portfolio of the bank.”
Bonvissuto conceded the auto industry was suffering “as other industries are suffering” and was looking at the fifth straight year of decline with no significant optimism for 2013.
“May this year was the lowest May for 20 years,” she said. “We had announcement [s] of plant closures last year and this year. Suppliers are doing better – there was some restructuring in 2008/2009 and with the flexibility they are coping a bit better with the current crisis than OEMs.
“With the closure of Ford Genk, the number of jobs lost to the supply chain is 2.7 times higher than the number than the number lost just with the OEMs.”
The EC DG deputy head also stressed opportunities for the auto sector outside the EU, such as BRIC countries, but also markets such as Turkey and the US that are enjoying a more healthy outlook.
Bonvissuto recognised the contentious issue of so-called ‘delocalisation’ that has so irked some French automotive unions and stressed the importance of attempting to keep jobs in Europe where possible through spheres such as Free Trade Agreements [FTA).
“Of course delocalisation is an option, but from the point of view from European institutions, we need to keep growth and jobs in the EU and for that we need to have negotiations with other partners which ensure market access.
“We will have the first [US-EU FTA] round in July of what can be the most important bi-lateral trade agreement signed in the world between the EU and US. There are high expectations that will highly benefit industry.”
Bonvissuto added CARS2020 “might not be enough” and that could need some “fine-tuning,” although whether this would involve European finance was not immediately clear.
