By Elinor Blair - 14th January 2005
Brussels has unveiled plans to boost growth and competitiveness in the European car sector, amid calls of foul play.
Industry chief Gunter Verheugen said on Thursday that he would be chairing a high-level working group whose aim is to find “the best possible regulatory approaches” for the industry.
“I am convinced that the EU can compete if we offer better quality, better technology and better services. Lean, clean and safe – this is the way forward,” he told the press.
Members of the expert group will include car executives from across the EU, government representatives, one trade union representative and one environmental voice.
Verheugen said that the car sector is crucial for Europe’s growth and employment prospects, and argued that Europe’s labour costs and relatively low productivity cause concern.
“Labour costs are a real problem: while one hour of labour costs $12.90 in South Korea, $29 in Japan and $33.80 in the US, the EU-15 average is at $32.70, with Germany topping the list with $36.80,” he said.
But the so-called “Cars 21” initiative has been quick to attract critics.
Many have be vocal in condemning the make-up of the expert group as being industry biased and have argued that the initiative gives the car industry an unjustified privileged position in the EU’s industry policy.
To help boost growth within the sector, Verheugen also plans deregulation moves.
He aims to withdraw EU directives and replace them with corresponding UN regulations - meaning the car industry will have one unified set of technical requirements to work towards.
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