A3-0266/93

Resolution on a Commission communication on "The European motor vehicle industry: situation, issues at stake, and proposals for action"

The European Parliament,

-having regard to the Commission communication on "The European motor vehicle industry: situation, issues at stake, and proposals for action"

(COM(92)0166 - C3-0282/92),

-having regard to the Commission's previous communication on the car industry (SEC(89)2118),

-having regard to its previous resolutions on the car industry,

-having regard to submissions from parties concerned,

-having regard to the corporate restructuring taking place in the car industry with consequent improvements in competitiveness but at the cost of significant job losses,

-having regard to the sharp decline in demand for cars in the Community in the last 12 months,

-having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinion of the Committee on Energy, Research and Technology (A3-0266/93),

A.alarmed at the still-growing trade imbalance between Japan and the EC - now standing at ECU 30 billion - and the continuing lack of progress on reciprocity,

B.alarmed at the optimistic demand forecasts used by the Commission in talks with the Japanese Government to reduce the level of direct imports of cars from Japan,

C.alarmed at recent forecasts of a productive capacity of 19.8 million cars and only 15 million car sales by the year 2000,

D.whereas the systematic undervaluation of the yen favours imports of motor cars and spare parts from Japan, even though it has become less pronounced in recent months,

E.regretting the Commission's failure to involve the social partners in developing a medium-term policy for the restructuring of the industry and in drawing up its demand forecasts for the industry,

F.concerned at the Commission's failure to take account of the rapid increase in productivity, at a time when over-capacity co-exists with stagnant demand and limited export opportunities,

G.emphasizing the lower labour costs incurred by non-EC manufacturers and the need to take this into consideration when pursuing the harmonization of social costs within the industry,

H.concerned at the increasing difficulties experienced by the European motor vehicle industry in turning its massive R & D investments into competitive market advantages, as a result of more effective and market-orientated government-supported R & D cooperation amongst its US and Japanese competitors,

I.endorsing the call by the social partners for support policies to be developed by an on-going tripartite dialogue to ensure optimal economic and social outcomes from the process of structural adjustment,

J.believing that the EC-Japan agreement in 1991 has been made less effective by the lack of clarity in the "elements of consensus" and in the growth of transplant capacity within the Community,

K.looking to industry to increase partnership between suppliers, manufacturers and components industry to achieve competitiveness,

1.Points out that the motor vehicle industry itself must take responsibility for solving the serious economic and structural problems it faces and that the Commission and the two sides of industry should deepen their dialogue, while acknowledging the motor vehicle industry's own responsibility, with a view to gearing the goals of any Community measures to the requirements of this industry and enabling such measures to be implemented efficiently;

2.Calls on the Commission to ensure that the new limits on Japanese imports agreed by Commissioner Bangemann on 4 September 1993 are rigorously enforced and monitored and that Japanese cars sourced through a second non-EC nation are included in the overall limit and any sales overrun above agreed levels be paid back in future years' agreed figures, and that the taking into account of Japanese transplant capacity be formalized into a comprehensive formula based on the productivity potential of transplants and their local content, and that the forecasting process be opened up to dialogue with the social partners, for monitoring with parties involved;

3.Calls on the Commission to use proper discipline in judging the use of state aids, bearing in mind existing over-capacity in the industry;

4.Calls on the Commission to take immediate steps to continue the social dialogue regarding the restructuring process and its consequences: it is hoped that the Commission/European Parliament Conference in March 1994 will explore issues and provide a clear action focus and an institutional format capable of bringing social partners together at a professional working level, on an ongoing basis: this Conference could be used to explore dialogue between the social partners, the Commission and the European Parliament;

5.Calls on the Commission to set up rapidly the planned study committee and technical working parties, with participation on a professional basis, as a mechanism for pursuing the following objectives:

(a)to devise a Community policy capable of bringing about the structural changes that are needed and the reorganization which is essential on the production side; such a policy should also take account of the need to adapt commercial operations to present a better response to the demands of European consumers and should seek to increase exports to those parts of the world where there is still a substantial demand, while enabling the abovementioned objectives to be achieved;

(b)to convene, on fair competition and a social level playing field, referred to as a "social Gatt", a mission composed of social partners, Commission and European Parliament to explore issues with the Japanese government and relevant parties, especially in regard to the question of working hours in Japan, the Community and other parts of the world,

(c)to encourage the institution of cooperation between Community motor manufacturers and third world countries, with a view to developing or constructing a motor industry corresponding to their needs;

(d)to encourage the upward harmonisation of social standards and employment security for EC motor industry workforces as far as is possible within the powers of the social partners,

(e)to examine issues in the employment skill development and retention crisis of the industry;

(f)to launch a massive drive to raise employees' skill levels with a view to handling technological change in the industry;

(g)to explore how the concept of 'flexible security' and employee educational development could contribute to restoring EC car industry competitiveness;

(h)to explore how changes in working time could contribute to employment security, job creation and patterns of work organisation which are more responsive to the diverse circumstances of the labour force, in particular women,

(i)to advise on the application of the new Objective 4 Funds to the motor vehicle industry;

(j)to bring together all appropriate social partners to identify R & D, environmental and integrated transport policy options,

(k)to improve exports and not be over-dependent on the EC market;

(l)in consultation with the social partners and the European Environment Agency, to agree on future European-wide standards in terms of environmental damage associated with the production and use of motor vehicles,

(m)to improve components industry competitiveness;

(n)to establish a co-ordinating committee between the various Directorates- General to integrate policy affecting the motor vehicle industry;

(o)to ensure swift adaptation of innovations to new products and greater efficiency in the promotion and marketing thereof;

(p)to provide greater stimulus to, and review the legal barriers currently hindering, close-to-the-market R & D initiatives between European motor vehicle manufacturers and suppliers in key areas such as clean technologies, electric vehicles and electronic components,

6.Calls on the Commission to encourage motor manufacturers and fittings suppliers to undertake closer cooperation on a long-term basis, to include design, production, productivity and product maintenance;

7.Calls on the Commission to analyse and draw lessons from the recent trends in the US motor industry, where, according to the latest figures available, manufacturers appear to be rectifying a situation which had been compromised by the fierceness of Japanese competition;

8.Calls on the Commission to provide greater stimulus to research and development in the push for innovative generic technologies necessary for "low emission" vehicles whose production of CO2 emissions will be reduced to the greatest possible extent;

9.Calls on the Commission to propose research programmes in the social science field to cover, among other subjects, the devising of new working methods taking account of employees' creativity;

10.Calls on the Commission to consider that the future development of the European motor vehicle industry involves an increase in international trade in this sector and that there must be a permanent monitoring of all dumping resulting from social and fiscal disparities: the competitiveness of Community production requires there to be a limit on the charges imposed on industrial prices and also improvements in quality;

11.Instructs its President to forward this resolution to the Council, Commission and parties involved in the industry.