ETRMA response to consultation on the Future of the European automotive industry
The European Tyre and Rubber Manufacturers' Association (ETRMA) has submitted its views to the European Commission's public consultation on which urgent action is needed to give the automotive industry a solid future in Europe and identify potential solutions.
The tyre and rubber sector is crucial for the automotive sector and the mobility ecosystem at large. As many other industries of the automotive value chain, high energy, labour and raw material costs, paired with strong price competition from tyres produced outside the EU, have negatively impacted the competitiveness of the tyre industry.
ETRMA's recommendations aim at creating a legislative environment that will be conducive to a gain in competitiveness, minimising the bureaucratic burden as well as promoting a wider EU Automotive Action Plan, that considers the whole automotive supply chain as strategic.
1. Clean transition - Promote best-performing tyres and tackle the high energy costs for the industry
- Encourage the use of best-graded tyres through public procurement and financial incentives for consumers can improve road safety, reducing stopping distances by up to 4 cars lengths, and decrease CO2 emissions by 4 million tonnes a year, the equivalent of removing 1.3 million passenger cars from EU roads annually.
- Introduce financial and regulatory incentives to tackle the high energy costs of the energy intensive industries, including downstream industries. Production costs for a tyre have increased sharply in Europe in the last few years, resulting in a critical loss of competitiveness for the European tyre manufacturing based in Europe.
2. Technological and Digital Innovation – Establish sector-specific regulation for access to in-vehicle data
- By enabling regulated and safe access to this data, businesses can develop services that enhance predictive maintenance, fleet management, and eco-driving, benefiting both private users and public authorities. Unlocking this proposal will allow the development of new services for European drivers and consumers with a direct impact on the performance of tyres both in terms of safety and environmental performance.
3. Industrial Value Chain - Support industry value chain strengthening its supply chain
- Avoid further increasing the costs of producing in Europe and loosing competitiveness by expanding the list of materials included under CBAM, particularly in case this would not be accompanied by the expansion to the corresponding finished products.
- Develop an EU Rubber Strategy to secure supply chain of raw materials such as natural rubber, including it in list of critical raw materials.
4. Skills and Social Considerations - Support upskilling and reskilling of the industry
- Equip the current and future workforce with the skills required to meet increasing demands for automation, digitalisation, and sustainable material use within the tyre industry.
5. Trade - Boost European competitiveness through trade and market access
- Achieve fair and open access to global markets for European tyres, with a focus on emerging high-growth regions like India and Indonesia.
6. Simplification - Avoiding Double Regulation and Prioritising Global Standards
- Simplify the tyre regulatory environment through complementary strategies (such as favouring the use of UN regulations, avoid double regulations) to reduce implementation costs, and legal uncertainties making investing in R&D and producing in Europe more attractive.
Read all the details in our response below.
