Europe moves to protect auto sector
BRUSSELS — Europe is drawing up plans to protect its auto industry as manufacturers battle barriers to export markets and face up to increasingly tough environmental challenges.
The industry and regulators approved Wednesday "a new action plan in favor of the automotive sector," European Union Industry Commissioner Antonio Tajani said.
The plan is anchored by an extra half a billion euros of EU investment in green technologies but carmakers said the programme would stand or fall on free trade negotiations with Japan and other major competitors.
Tajani said after the talks that the EU would ensure automakers could feel safe thanks to a " good trade policy, on a level playing field" with rivals around the globe.
However, Sergio Marchionne, the Fiat boss who heads the European automotive industry association ACEA, said Wednesday's agreement was only "day one of a long haul going forward."
With the EU about to enter free trade negotiations with Japan, the world's thirdlargest economy, Marchionne said this part of the plan must not be " forgotten" in Brussels.
"Trade relations should deliver reciprocal benefits," he stressed.
" However, the EU always appears ready to compromise on these conditions as experience has shown with South Korea and other examples," he noted.
After five years of decline, the industry feels threatened by rising South Korean exports -- with brands like Kia showing regular and big sales increases, albeit from a low base, while traditional European models slide consistently.
"Very clearly there are things that need to be checked," Marchionne said of South Korea and this experience was a "very good warning sign for the Japan deal," he said.
Tajani acknowledged negotiations can be difficult, especially given lower costs elsewhere, the Italian using a football analogy to say European trade rules are like "11 v 11," whereas in other countries, "it's very difficult to play nine men against 13."