No C 230/18 Official  Journal  of the European  Communities 10. 9. 81 
Opinion  on the automobile  sector 
The opinion  of the Committee  is not based  on any text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 185th  plenary  session  held  on 25 and  26 February  1981  the Committee,  acting  on a 
proposal  from  the Bureau,  decided  to deliver  an opinion  on the abovementioned  subject  on its 
own initiative. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and Social  Committee  prepared  its opinion  on the above  matter  at its 189th 
plenary  session  held  in Brussels  on 1,2  and  3 July  1981. 
The full text of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the fourth  paragraph  of Article  20 of its 
Rules  of Procedure, 
Having  regard  to its decision  taken  on 26 February  1981, 
acting  on a proposal  from  its Bureau,  to draw\p  an 
own-initiative  opinion  on the automobile  sector  ancKm 
instruct  the Section  for Industry,  Commerce,  Crafts  ana" 
Services  to prepare  the work  on the matter, 
Having  regard  to  the  opinion  issued  by  the 
abovementioned  Section  at its meeting  on 2 and 3 June 
1981, 
Having  regard  to the oral  report  made  by the rapporteur, 
Mr Laval, 
Having  regard  to the discussions  at its 189th  plenary 
session,  held  on 1,2  and  3 July  1981  (meeting  of 1 July 
1981), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
with 50  votes  in favour,  34  against  and  six 
abstentions: 
1.1. Against  the  background  of the  restructuring 
process  which  has been  taking  place  over  the past  few 
years  in many  of the most  important  industrial  sectors, 
the automobile  sector  stands  out  because  of its 
significance  for employment  and  the economy.  It has 
played  a key role  in economic  expansion  for many  years. 
The automobile  industry  accounts  for approximately  5 to 
8 % of total  industrial  output  and  exports  of motor 
vehicles  add  up  to between  8 and  12  % of the 
Community's  exports  of industrial  products.  The 
automobile  industry  employs  directly  almost  two million people  and provides  a further  six million  jobs  in related 
industries,  e.g.  vehicle-  distribution,  maintenance  and 
repair  and the components  industry. 
1.2. In  view  of the economic  and social  importance  of 
the vehicle-maintenance  industry,  the Committee  feels 
it necessary  to consider  jointly  jobs  in the  vehicle-
manufacturing  sector  and  those  in the  vehicle-repair 
and maintenance  sectors.  The  Committee  urges  that  an 
assessment  be made  of the effect  on overall  employment 
of the technical  improvements  to motor  vehicles  and the 
resulting  increase  in their  durability  and savings  in energy 
and raw  materials. 
1.3. The  difficulties  currently  facing  the automobile 
industry  are of both  an economic  and structural  nature. 
The question  arises  as to whether  the industry  will be able 
to maintain  its key position  in the face  of the challenges 
arising  from  the energy  crisis  and the penetration  of the 
Community  market  and  the international  market  by a 
number  of non-EEC  manufacturers.  Furthermore,  as 
things  stand  at present  it is difficult  to envisage  how 
another  sector  could  act as a 'driving  force'  for the 
economy  by  providing  an  equivalent  number  of 
opportunities  for  employment  and  marketing  EEC 
products  and  thereby  take  the place  of the automobile 
industry. 
1.4. All  the various  problems  involved  have  already 
been  considered  by different  bodies.  The  Commission  in 
particular  has given  an assessment  of the position  of the 
automobile  industry  in a document  drawn  up for the 
European  Parliament.  The  Parliament  itself  has  also 
taken  a stand  on the Community's  automobile  industry 
(in a resolution  issued  in January  1981)  by analysing  the 
various  aspects  and  calling  for a strategy,  devised  at 
Community  level,  for enabling  the industry  to meet  the 
challenges  and  difficulties.  The  Parliament  was 
unequivocal  as regards  the role  to be played  by the 
automobile  sector  as it stated  that  it was  convinced  that 
10. 9. 81 Official  Journal  of the European  Communities No C 230/19 
the sector  could  given  the economy  of the Community  a 
new dynamism  and  a new  impetus. 
1.5. The  Committee  welcomes: 
(a) the  initiative  taken  by the European  Parliament  and 
the guidelines  set out in the resolution  calling  for a 
Community  strategy  for  the  automobile  sector 
(external  trade  policy,  common  market,  R&D, 
industrial  structure  and  social  policy); 
(b) the  fact  that,  following  the statement  made  by the 
Members  of the Commission  with  responsibility  for 
this field,  the Commission  has taken  account  of this 
resolution  and a new  document  has been  produced  on 
this sector. 
1.6. The  Committee  would,  however,  like  to clarify  a 
number  of points,  stress  some  others  and make  a number 
of additional  proposals: 
(a) in the light  of the most  recent  analyses  of the situation 
over  the last  few  months  and  bearing  in mind  the 
likely  trends; 
(b) given  the views  expressed  on the EEC  automobile 
industry  by the Commission  on 10 June  1981  which 
merit  thorough  consideration; 
(c) given  Japan's  sustained  export  drive  not only  in the 
Community  but also  in non-EEC  countries; 
(d) in the light  of the measures  taken  by the USA  and the 
reestablishment  in the short  or medium  term  of the 
competitiveness  of US firms; 
(e) bearing  in mind  the voluntary  restraint  by Japan  of its 
exports  to the USA; 
(f) in view  of the  fact  that  manufacturers  in the 
Community,  the  Member  States  and  the  EEC 
authorities  should  increase  their  cooperation  in some 
fields. 
2. Trade  policy  and  relations  with  non-EEC  countries 
2.1. The  Committee  regrets  that  the Community  has 
no trade  policy  for the automobile  sector.  As things  stand 
at present,  when  trade  problems  arise  with  non-EEC 
countries  these  are settled  mainly  by the Member  States 
themselves.  As a result  the Community  is in a position  of 
weakness  vis-a-vis  large  exporters,  in particular  the 
Japanese.  The  latter  take  advantage  of this lack  of unity  to 
establish  themselves  both  on the  Community  market, 
gaining  access  via the markets  which  are the most  open  -
mainly  those  of States  which  do not  have  their  own 
automobile  industry  - and,  more  generally,  on all 
financially  viable  markets. 
2.2. Given  this  situation  and  the  various  structural 
conditions  which  give  the Japanese  industrial  system  an advantage  which  others  cannot  offset  in a short  space  of 
time,  and  bearing  in mind  the voluntary  restrictions  on 
Japanese  exports  to the USA,  the Committee  considers 
that there  is a need  for a voluntary  restraint  on exports  on 
the part  of Japan  in order  to stem  that  country's 
disruptive,  expansionist  drive  and  to avoid  protectionist 
reactions.  It is essential  to give  the Community's  industry 
as a whole  a significant  breathing  space  in which  to find  a 
new dynamism  and  thereby  become  competitive  once 
again. 
2.3. The  Committee  welcomes  the  recognition  by 
Japan  during  the trade  talks  in June  of the major  nature  of 
the modernization  programme  in which  the European  car 
industry  is now  engaged,  and  the assurance  given  to the 
Commission  that  there  will  be moderation  in Japanese  car 
exports  to the EEC  in 1981  with  no diversion  of cars  to 
the Community  as a result  of measures  taken  vis-a-vis 
the USA  and  Canada. 
The Committee  also  notes  the recent  further  undertakings 
by Japan  regarding  sales  in West  Germany,  Belgium  and 
the Netherlands. 
The Committee  urges,  nevertheless  that  the Commission 
should  not relax  its vigilance  regarding  Japanese  imports 
nor its efforts  to achieve  if possible  a Community 
agreement  with  Japan,  whereby,  from  1982,  Japan  will 
voluntarily  limit  its overall  sales  to the EEC  of both  cars 
and commercial  vehicles,  giving  particular  attention  to 
markets  where  penetration  is above  average. 
2.4. As  a result  all  the  voluntary  restraint 
arrangements,  which  should,  if possible,  set  out 
sufficiently  precise  provisions  with  regard  to the 
time-scale  for  overall  imports  and  the  progressive 
quantities  of vehicles  imported,  will  thus  have  to be 
carefully  monitored  by the Community  bodies  so that 
they can take  action  if the arrangements  are not respected, 
as was  the  case  with  the  agreement  in respect  of 
shipbuilding.  The  action  taken  could  be in the form  of 
safeguard  measures. 
2.5. The  Committee  would  stress  the absolute  need 
for an adequate  breathing  space  for the Community's 
motor-vehicle  industry  in order  to enable  it to stage  a 
revival.  This  time  would  have  to be used  not just  to make 
structural  and technical  changes  but also  to bring  in more 
dynamic  and  more  scientific  methods  of marketing. 
Echoing  the  concern  expressed  by  consumers  the 
Committee  considers  that  the  competitive  position  of 
manufacturers  in the Community  would  be strengthened 
if they  were  to offer  their  customers  special  terms 
comparable  to those  normally  provided  by  some 
non-EEC  manufacturers  in respect  of matters  such  as the 
duration  of the guarantee,  the 'all-inclusive'  policy  and 
'on-the-road'  prices. 
No C 230/20 Official  Journal  of the European  Communities 10. 9. 81 
2.6. Spain,  a prospective  member  of the Community, 
is one of the non-EEC  countries  which  has a developed 
automobile  industry.  In  view  of that  country's 
preferential  access  to the Community  market  and  the 
resultant  disparity  in levels  of customs  duties,  the 
Committee  insists  that  Spain  should  reduce  its import 
duties  on assembled  vehicles  to a level  no higher  than  that 
of the external  tariff  applied  by the EEC  to imports  from 
Spain;  this  should  also  be achieved  prior  to Spain's 
accession  to the Community. 
There  is also  a need  for consultations  with  Spain  over  its 
policy  vis-a-vis  imports  from  Japan. 
2.7. Such  measures  do  not  detract  from  the 
desirability  of achieving  a balance  on a world-wide  level 
in respect  of trade  policy  and  industrial  cooperation 
between  the three  main  manufacturing  areas  - USA, 
Japan  and  the EEC. 
3. Full  achievement  of the common  market  - Removal 
of technical  barriers  which  are  still  hampering 
intra-Community  trade 
3.1. Though  substantial  progress  has been  made  in 
removing  technical  barriers  to intra-Community  trade 
there  are still  some  outstanding  problems  in respect  of 
which  a political  decision  has to be taken. 
3.2. Important  Directives  (e.g.  Directives  on tyres  and 
windscreens)  have  still to be adopted  by the Council  in 
order  to enable  a real  EEC  type-approval  procedure  in 
respect  of complete,  private  cars  to be established.  The 
delay  in adopting  the  Directives  is no  longer 
fundamentally  due to technical  factors.  Once  these  final 
Directives  have  been  adopted  the EEC  type-approval 
scheme  will become  operational  and it will thus  apply  not 
only to goods  manufactured  in the Community  but also  to 
goods  imported  from  non-EEC  countries. 
3.3. The  Committee  calls  upon  the Commission  to 
ensure  the  maximum  coordination  between  the 
authorities  in the Member  States  before  a motor  vehicle 
imported  from  a non-EEC  country  is accorded  type 
approval.  The  Committee  already  made  this request  in its 
opinion  on the type  approval  of motor  vehicles  and their 
trailers  (i) and  it is reiterated  here  in view  of the 
consequences  for the Community  as a whole  of the issue 
of EEC  type  approval. 
3.4. The  Committee  also  insists  that  application  of 
this procedure  be subject  to effective  reciprocity  by 
non-EEC  countries  in all fields.  Such  a condition  is particularly  necessary  in cases  where  these  countries 
maintain  import  barriers  which  may  hamper  EEC 
exports  (see  the  Committee's  opinion  on  EEC 
certification)  (2). 
3.5. It  is also  essential  that  the Directives  which  have 
already  been  adopted  be brought  into  line with  technical 
progress  much  more  quickly  than  is currently  the case,  if 
this should  become  necessary  in order  to permit  the 
practical  application  of new  technologies.  Since  this 
carries  the  risk  of imposing  additional  costs  on 
manufacturers,  it must  be preceded  by in-depth  research, 
preferably  undertaken  jointly  by the Commission  and the 
industry,  into  the  necessity,  feasibility  and  financial 
implications  of the measures.  The  adjustments  would 
cover  in particular  the fields  of energy  safety,  noise  levels 
and pollution  controls. 
3.6. Furthermore,  harmonization,  which  has  so far 
been  concentrated  on technical  aspects,  must  be achieved 
in other  fields,  such  as tax law,  value  of goods  for customs 
purposes  and insurance. 
4. Competition  policy  - Agreements  concluded 
between  companies  - Research  and development  -
Investment  - measures  taken  by  the  public 
authorities  to help  the automobile  sector 
4.1. The  Committee  would  refer  to the opinion  on 
competition  policy  which  is adopted  recently.  The 
Committee  urges  that  the situation  of the automobile 
industry  be assessed  in a much  broader  context  than  that 
of the EEC  market.  The  term  'relevant  market'  must  be 
defined  from  a world-wide  point  of view.  Agreements 
reached  amongst  EEC  companies  or between  EEC  and 
non-EEC  companies  must  then  be assessed  in the light  of 
this criterion.  It is also imperative  to make  adjustments  to 
the implementation  of the rules  governing  competition  to 
take account  of the  world-wide  context  and  the 
particularly  critical  situation  in which  the Community's 
automobile  industry  finds  itself. 
4.2. In  view  of all the factors  which  have  enabled  the 
Japanese  automobile  industry  to increase  its productivity, 
in particular  the level  of its manufacturing  costs,  the 
widespread  introduction  of robotics  and the competitive 
advantages  which  may  accrue  from  fluctuations  in 
exchange  rates,  it is very  difficult  for the manufacturers  in 
the Community,  under  the present  circumstances,  to 
compete  properly  with  their  Japanese  counterparts  from 
the point  of view  of price.  Intensified  efforts  in research 
and development  to improve  manufacturing  methods  and 
product  technology  would  help  EEC  manufacturers  to 
regain  their  competitivity. 
(>) OJNoC  144,  11.5.  1981. (2) OJ No C 205,  11. 8. 1980,  p. 20. 
Official  Journal  of the European  Communities  No  C 230/21 10. 9. 81 
Agreements  in the field  of R & D must  therefore  not only 
be promoted  but  also  coordinated  at Community  level 
and supported  financially  by the Community.  An EEC 
research  fund  could  provide  an effective  stimulus. 
The Commission  should  determine,  in conjunction  with 
the industry,  those  areas  where  opportunities  exist  for 
joint  research  programmes,  with  Community  financial 
assistance,  regarding: 
(a) research  with  a view  to determining,  in agreement 
with  the  industry,  common  principles  governing 
future  regulations  affecting  the product; 
(b) research  to increase  the  industry's  knowledge  of 
fundamental  aspects  of vehicle  design,  such  as 
combustion  characteristics  and  aerodynamics  (both 
energy  related),  and  production  technology. 
4.3. The  Committee  would  point  out  that  the 
continuing  excessively  high  level  of interest  rates 
constitutes  a handicap,  given  the  considerable 
investments  to be made. 5. Social  and  regional  aspects 
5.1. The  Committee  would  stress  the importance  of 
the views  expressed  by the European  Parliament  on this 
matter;  the  Committee  would  draw  attention  in 
particular  to its proposals  with  regard  to the provision  of 
information  and  consultations  between  both  sides  of 
industry,  reorganizing  and  adjusting  working  hours  and 
the use of the European  Social  Fund,  the articles  of which 
must  be amended  to enable  it to extend  the scope  of its 
interventions.  These  interventions  should  be  of a 
subsidiary  nature,  complementing  the measures  taken  by 
the companies  themselves  and  the Member  States. 
5.2. The  provision  of information  and  consultations 
between  both  sides  of industry  must  lead  to a better 
understanding  of the problems  of this  industrial  sector 
and the employment  problems.  Whilst  carrying  out  the 
necessary  adjustments  and  restructuring  work  the EEC 
automobile  industry  must  equally  aim  at maintaining  a 
qualitative  and  quantitative  employment  policy  designed 
to achieve  stability.  The  various  levels  of vocational 
training  should  be improved  and  adjusted  to future 
requirements.  In this  way  greater  flexibility  both  in 
manufacturing  techniques  (e.g.  the  use  of a single 
production  line  for the assembly  of several  models)  and  as 
regards  labour  (multiskill  training)  will  help  to bring 
about  more  stable  employment. 
Done  at Brussels,  1 July  1981. 
The Chairman 
of the 
Economic  and  Social  Committee 
Tomas  ROSEINGRAVE 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
Rejected  amendment 
The following  amendment,  which  was  tabled  in accordance  with  the Rules  of Procedure,  was  rejected 
during  the debate: 
Page  21, paragraph  5.1: 
Delete  paragraph  5.1. 
Reasons: 
The problem  of information  and consultation  is the subject  of a separate  consultation  currently  underway 
in the Committee.  It would  be premature  for the Committee  to express  an opinion  on this  at the present 
time. 
Voting: 
For: 20, against:  69, absentions:  13.