| Author (Person) | McLauchlin, Anna |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.10, No.29, 2.9.04 |
| Publication Date | 02/09/2004 |
| Content Type | News |
|
By Anna McLauchlin Date: 02/09/04 THE carmaker Ford is accusing the European Commission of harming Europe's competitiveness to the benefit of Asian manufacturers with its plan to open up the car-parts market. Wolfgang Schneider, vice-president of legal, governmental and environmental affairs for Ford Europe said the plan was "misconceived" EU commissioners will decide on 14 September whether or not to allow independent manufacturers to produce and sell visible spare parts, such as body panels, headlights and windscreens. "If this proposal is approved [Ford] will lose revenue in the region of a few hundred million euro per year to producers in the east," Schneider told European Voice "It will damage the competitiveness of hi-tech EU producers who will lose out to copiers in Taiwan. "It will also shift employment to cheaper countries as there will be no incentive to innovate but instead only to copy." Schneider said the Internal Market Commissioner Frits Bolkestein had "good intentions" but said "a lot of things have been overlooked" "This has been debated under the issue of industrial policy and deregulation and the conclusion reached has been that deregulation is good for the consumer, which it often is," he said. "If there was a tangible benefit to the consumer we would of course not oppose the legislation - but the bottom line for consumers is that they will pay the same price for a less good part but it will be more expensive to fit." And the Ford executive called for the proposal to be delayed and the competitive aspects properly examined "We need a change of context," he insists. "It would add value to the decision-making if [this proposal] were discussed in terms of competitiveness, not in the context of deregulation." The so-called repairs clause has been debated for the past 12 years as carmakers lobby to save a monopoly worth l2 billion a year. They claim the Commission plan will deprive the EU of its innovators while delivering no benefit to the consumer. Parts distributors and insurance companies are the ones who will pocket the margins, they say Meanwhile, free market campaigners have criticized what they call the unfair exploitation of consumers in countries such as France where carmakers still hold the monopoly on visible spare parts The European Federation of National Insurance Associations (CEA) claims the average price of visible spare parts is 9.8% lower in EU countries such as the Benelux, Italy, the UK, Hungary and Latvia where the visible spare-parts market is fully liberalized "The design of cars is still protected, there is no question of that, so innovation is not lost," argues Sylvia Gotzen of ECAR, which represents Europe's vehicle parts producers, insurers and independent repairers "But the "after market" is a different issue. If you have a Peugeot car and you have a little crash, an independent repairer must go back to Peugeot to buy his parts at monopoly prices." ECAR claims carmakers make around 39% of their gross profit from spare parts but only 18% from manufacturing, which is why they are so keen to see this proposal quashed An EU official said the proposal is likely to be approved on 14 September despite the powerful automotive lobby "Nothing is certain, but I think it will go through," he told European Voice. "[Commission President Romano] Prodi is supporting the proposal." Commission discussion of the proposal was earlier planned for 8 September but has been rescheduled because German Commissioner Günter Verheugen, who in November will take over the EU's industry portfolio, will be in Turkey. Germany is home to Europe's largest car manufacturer, Volkswagen. Earlier this year carmakers managed to win a delay in order to come up with more information defending their side. But the European Automobile Manufacturers Association (ACEA) admitted they had failed to provide persuasive new data by the June deadline Schneider says the issue is more about timing "We had the chance to make our arguments, that is true, but they have not been properly considered," he argues "Look at the timing. Some commissioners have left, others are in the process of leaving. This issue has fallen into a phase where it has not been properly discussed." And he said the next Commission team, which takes over on 1 November, would be better placed to judge the matter. "There needs to be a better balance and I think most people realize this," he says. "We think the new Commission President [José Manuel] Barroso will make industrial policy a priority in the next Commission "We have high hopes this proposal will be handed over to the new Commission for a re-evaluation in light of the arguments to be given for EU competitiveness." Car manufacturer Ford opposes plans of the European Commission to open the markets for certain car parts. |
|
| Source Link | http://www.european-voice.com/ |
| Related Links |
|
| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
