Carlos Ghosn says innovation and trade key to European OEMs’ growth

At the European Automobile Manufacturers’ Association’s (ACEA) annual general meeting held on June 13, ACEA president Carlos Ghosn outlined the industry’s manifesto for a competitive European automobile industry. He called on Europe’s new policy makers to commit to reforms to strengthen the competitiveness of the industry, which is a cornerstone of Europe’s economy.

ACEA’s members are BMW Group, DAF Trucks, Daimler, FIAT SpA, Ford of Europe, General Motors Europe, Hyundai Motor Europe, IVECO SpA, Jaguar Land Rover, PSA Peugeot Citroën, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars and Volvo Group.

Ghosn, who is also chairman and CEO of Renault, said that confidence is starting to return to European markets, predicting that growth could be sustained alongside Europe’s recovery. “As we begin a new chapter in EU policy making, our industry is making three concrete recommendations to consolidate this growth and to strengthen our global competitiveness. These are to drive innovation, to foster growth through international trade, and to build a supportive regulatory framework,” he said.

The auto industry is the number-one R&D investor in Europe – ahead of the pharma and technology industries. “We need the flexibility to continue driving innovation in our priority areas of environmental performance, safety and connectivity,” explained Ghosn. “To this end, we need policies and regulations that encourage rather than restrict innovation, and that are technology-neutral.”

In the light of ongoing free trade negotiations with Japan and the United States, Ghosn called for a comprehensive approach to trade policy that covers not only tariff elimination, but also the removal of non-tariff barriers and regulatory cooperation. “Our business model is based on free trade -- free trade that is balanced, fair and reciprocal, providing impetus to produce for both European and International markets,” he said.

In order to improve the overall regulatory framework for the automotive industry – which is one of the most regulated sectors in Europe – Ghosn called for impact assessments to be carried out systematically whenever proposals are drafted or legislation is reviewed, and for realistic lead times for any proposals affecting the industry. 

Ghosn was speaking shortly after the European elections on the occasion of ACEA’s annual general meeting, which convenes the CEOs of Europe’s main motor vehicle manufacturers. “Europe’s policy makers and industry leaders need to work together to build the right conditions for growth, jobs and investment.  Together, we can ensure a future in which Europe’s industry is sustainable, and its citizens are prosperous and mobile. ACEA will contribute constructively to policy discussions with the new parliament and Commission so we can help turn this vision into reality.”

Facts about the EU automobile industry

• Some 12.9 million people – or 5.3 percent of the EU-employed population – work in the sector.

• The 3 million jobs in automotive manufacturing represent 10 percent of EU's manufacturing employment.

• Motor vehicles account for €387 billion (Rs 3,126,960 crore) in tax contribution in the EU15.

• The sector is also a key driver of knowledge and innovation, representing Europe's largest private contributor to R&D, with €32 billion (Rs 258,560 crore) invested annually.

• The automotive sector contributes significantly to the EU trade balance with a €95.7 billion (Rs 773,256 crore) surplus.