individual vehicle approval in europe

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INDIVIDUAL VEHICLE APPROVAL IN EUROPE HIVA-The Problem And A Proportionate Solution A Presentation to Philippe Jean-Head of Unit -Automotive Enterprise and Industry and Jean-Paul Delneufcourt-Chairman TCMV Presented by Anthony Cohen Chairman AIAA in conjunction with Dominic Ouvaroff-Joint Founder Member AIAA and Phillippa Hentsch-Parliamentary Assistant to Malcolm Harbour Observed by Rosalind Travers-TABD EU Assistant Director

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Page 1: Individual Vehicle Approval in Europe

INDIVIDUAL VEHICLE APPROVALIN EUROPE

HIVA-The Problem And A Proportionate Solution

A Presentation to Philippe Jean-Head of Unit -Automotive Enterprise and Industry and Jean-Paul Delneufcourt-Chairman TCMV

Presented by Anthony Cohen Chairman AIAAin conjunction with Dominic Ouvaroff-Joint Founder Member AIAA and Phillippa Hentsch-Parliamentary Assistant to Malcolm Harbour

Observed by Rosalind Travers-TABD EU Assistant Director

Page 2: Individual Vehicle Approval in Europe

LEGAL OBJECTIVESenshrined in 2007/46/EC

• High Safety and Environmental standards

• Subsidiarity

• Proportionality

• Single Market rules

• Small Business Act of Europe

• Competition and Consumer Choice

• Extensive Stakeholder Consultation

Page 3: Individual Vehicle Approval in Europe
Page 4: Individual Vehicle Approval in Europe

Good Government

Page 5: Individual Vehicle Approval in Europe

History of American Vehicles in Europe

Imported since the Second World WarFirst imported by American ServicemenLegalised through German

Einzelbetriebserlaubnis-STVZOAmerican Car Clubs 50-UK 300 Europe Micro-SME’s 100 UK 1000 EuropeUK-low volumes as LHD in RHD market

Page 6: Individual Vehicle Approval in Europe

History of American Vehicles in Europe

Fragmented micro-SME’S-no Manufacturer supportUK SVA started in 1998 after Complaints to DG15>250,000 FMVSS/CMVSS vehicles on EU roadsNo Safety and Environmental problemsVery Low Volumes (UK circa 500) (Europe est.15-20,000)Volume split between M1 and N1 about 60%-40%Service/parts/warranties/finance/insurance availableULTRA low volume with hundreds of potential models

Page 7: Individual Vehicle Approval in Europe

MR VERHEUGEN’SREMARKS TO THE EUROPEAN PARLIAMENT 4TH FEBRUARY 2009

• “Another thing that we can do to stimulate demand and to help and lead the motor industry through this crisis is to ensure that the conditions of international competition, too, are also not violated. That is a question that must be directed at the United States, in particular. We will see what measures President Obama puts in place to counter the crisis in the US motor industry. In this respect, I would like to point out that it is not in Europe’s interest for the American carmakers to go under. The consequences for Europe would be catastrophic if that happened. However, it is likewise not in our interest for the US to institute a policy that would favour its motor industry at the expense of competitors from other parts of the world. I hope that we will get the opportunity to discuss this calmly with our American friends.”

• “A tariff barrier against cars from the US, Mr Louis, is definitively not something that we will be introducing. If there is one thing we will not be doing, this is it. American cars play no real role in the European market, whereas European cars play a large role in the US market. If there is a voice here in the European Parliament calling for us to protect our market against American cars, I fear that there will be a voice in the US Congress in Washington saying that they should protect their market from European cars. Our position would not look too good in such a situation. I would ask you in all seriousness not to pursue this idea any further.”

Page 8: Individual Vehicle Approval in Europe

2007/46/EC29th April 2009

ECWVTA

EC Small Series

Nat. Sm. Series

EC Citizen

NIVA

Large Manufacturer

SME

Volume Importer

One-size fits all

Problem:2500 HHR’s

Abuse by Manufacturer

“Equivalence to the greatest extent

practicable”

Page 9: Individual Vehicle Approval in Europe

THE PROBLEMWhen will the loophole be closed, that currently enables the

sale in the EU of large numbers of passenger cars via an individual type approval? Not only do these vehicles potentially jeopardise road safety but they can also avoid environmental

taxes with this kind of approval?WRITTEN QUESTION by Ari Vatanen (PPE‑DE) to the Commission

• Large numbers of identical vehicles imported through National IVA(NIVA) by Manufacturers

• No one-size fits all

• Undermining of European Type Approval

• Abuse of real IVA by MANUFACTURERS LOOPHOLE (Landwind, Brilliance, HHR)

• Powerful lobbying of Commission by FIA

• MEP Questions in European Parliament

• Problems for Technical Services in some MS

• By not adopting a proportionate solution, the Commission has over-ridden the concept of Subsidiarity

Page 10: Individual Vehicle Approval in Europe

Parliamentary questions

26 February 2008WRITTEN QUESTION by Othmar Karas (PPE‑DE)

to the Commission

Subject: Directive 2007/46/EC establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles — speedy end to legal loopholes

Following the FIA (International Automobile Federation) Conference on 29 November 2005, in which catastrophic crash test results for the Chinese motor vehicle ‘Jiangling Landwind’ were disseminated to the general public, the Commission promised that the legal loophole allowing motor vehicles which put safety at risk and do not meet EU minimum standards to flood onto the European market would be closed as part of the recasting of Directive 70/156/EEC(1).

As recent experience shows, the recasting of the directive through Framework Directive 2007/46/EC(2) did not close this loophole.One recent example shows that, following individual approval in the Netherlands, a total of 2 500 Chevrolet HHR cars are now for sale on the European market.

Bearing in mind that Articles 22 and 23 (in conjunction with Annex XII, Part A, Sections 1 and 2) of Framework Directive 2007/46/EC restrict the maximum number of small series vehicles of category M1 to 1 000 and 75 units respectively, it is unacceptable that vehicles which pose a serious risk to the safety of EU citizens are still flooding into the European Union thanks to individual approvals.

When will the legal loophole which makes it possible to use individual approvals to sell a large number of motor vehicles which pose a danger to safety in the EU be closed?

Page 11: Individual Vehicle Approval in Europe

Parliamentary questions

17 April 2008E-0959/2008

Answer given by Mr Verheugen on behalf of the Commission

Directive 2007/46/EC( concerning vehicle approval includes provisions regarding the individual approval of vehicles. These provisions will apply as from 29 April 2009. From that date onwards, individual approvals which, up to now, fell under national law of the Member States will fall under Community law. Given the provisions of Article 24 (1) of the directive, the competent authorities of the Member States will not be allowed anymore to grant an individual approval for a new vehicle if the latter does not comply with the harmonised technical requirements in force in the European Union or with technical requirements which have been recognised as providing an equivalent level of safety or environment protection.

These measures will guarantee that all vehicles built within, or imported into, the European Union will provide the same level of safety or protection of the environment.In the meantime, the current Framework Directive on type-approval, which excludes the individual approval scheme from its scope, continues to apply. This means that Member States still have the possibility to grant individual approvals on the basis of their national legislation until 29 April 2009. On this basis it is still legal to import into the European Union new vehicles which would not comply entirely with the Community legislation in this respect.

Instead, it is up to the Member States to ensure that those vehicles do not constitute a risk for road users. The Commission is not aware of the fact that several thousand vehicles of the General Motors brand Chevrolet have been marketed in the Community on the basis of one single approval delivered in one Member State.

If so, that would constitute a violation of the principle of the individual approval scheme which requires that each particular vehicle has to undergo an approval on a case-by-case approach, in contrast to type-approval which requires that only one vehicle — the prototype — undergoes the whole approval procedure.

On grounds of the information provided by the Honourable Member, the Commission will investigate the matter further.

Page 12: Individual Vehicle Approval in Europe

Draft proposal for HIVA

ECWVTA

EC Small Series

Nat. Sm. Series

HIVA

Large Manufacturer

High VolumeImporter

Large Manufacturer

Problem:Technical bar raised beyond capability of genuine IVA

for Citizen or SME

Only Manufacturer can comply

Page 13: Individual Vehicle Approval in Europe

No Consultation, Better Regulation or Impact Assessment

• No SME/Public Consultation

• No Proportionality- Sledgehammer to crack a nut

• No Transparency-IVA is for SME’s/Citizens

• No Consistency-with other laws-SBA,WTO, Consumer, Competition, Culture.

• NoTargeting-Only deal with the Problem

• No Regulatory Impact Assessment

Page 14: Individual Vehicle Approval in Europe

LEGAL PROBLEMSwith HIVA for SME’s/Individuals

• Proportionality X Unintended consequences

• Article 30/WTO X Age/Standards-distortions

• SBA 2008-SME’s X Beyond Capabilities

• Competition X No SME importers

• Consumers X No Bespoke Vehicles

• Subsidiarity X National Preferences

• Safety/Environment X Vehicles in parc now

Page 15: Individual Vehicle Approval in Europe

COSTS OF HIVAfor SME’s/Individuals

• > 1,000 longstanding SME’s fail in domino effect

• circa 5000 Unemployed directly

• Additional unemployment in multiplier effect

• Serious safety and environmental effects >250,000 FMVSS/CMVSS vehicles on EU roads

• Significant effect on personal freedom of choice

• Significant effect on Transatlantic cultural ties/Clubs/lifestyle trend since 2nd World War

• Encourages import of older vehicle technologies with negative effect on safety and environment

Page 16: Individual Vehicle Approval in Europe

THE PROBLEMRESTATED

When will the loophole be closed, that currently enables the sale in the EU of large numbers of passenger cars via an

individual type approval? Not only do these vehicles potentially jeopardise road safety but they can also avoid environmental

taxes with this kind of approval?WRITTEN QUESTION by Ari Vatanen (PPE‑DE) to the Commission

• Large numbers of identical vehicles imported through National IVA (NIVA) by Manufacturers

• No one-size fits all

• Undermining of European Type Approval

• Abuse of real IVA by MANUFACTURERS LOOPHOLE (Landwind, Brilliance, HHR)

• Powerful lobbying of Commission by FIA

• MEP Questions in European Parliament

• Problems for Technical Services in some MS

• By not adopting a proportionate solution, the Commission has over-ridden the concept of Subsidiarity

Page 17: Individual Vehicle Approval in Europe

OBJECTIVES FOR FAIR SOLUTION

• DEAL WITH THE PROBLEM-simply and quickly

• Respect principle of SUBSIDIARITY

• Maintain High Safety and Environmental standards

• Proportionality (Better Regulation)

• Single Market rules

• Small Business Act of Europe

• Competition and Consumer Choice

• Transatlantic Relationship

Page 18: Individual Vehicle Approval in Europe

Subsidiarity• The “problem” has been distorted and in

not arriving at a proportionate solution for SME’s and Individuals, the concept of Subsidiarity afforded to Member States under EC LAW has been forgotten.

Page 19: Individual Vehicle Approval in Europe

From the office of Malcolm Harbour 13th January 2010

• “Malcolm Harbour was the original "Rapporteur" in the Parliament on the type approval regulation and therefore knows the issues very well - the development of this standard should only be used to enhance safety and quite clearly, as you have explained, American cars are manufactured to the same high standards as Europe and low volume imports should be excluded. This was never the intention of the legislation”.

Page 20: Individual Vehicle Approval in Europe

Possible Approaches

• Numerical Limits X -very difficult to administer

• Give MS discretion to X define low Volume for NIVA ( already been done in effect under Article 24)

• Re-categorisation ✓ -simplest solution -Only MANUFACTURERS have ABUSED IVA

Page 21: Individual Vehicle Approval in Europe

SOLUTION 1 Amend Article 22

ECWVTA

EC Small Series- COC

Nat. Small Series

Large Manufacturer

NIVA

EC Citizen

SME’s

Amend Article 22EC Small Series

to include imports

Real IVA as per Article 24 Wording.

Subsidiarity maintained with regulation

close to SME/Citizen

Only available for Official Importer/

Manufacturer

Not available to Manufacturers. Low chance of

abuse

Page 22: Individual Vehicle Approval in Europe

SOLUTION 2HIVA + NIVA

New Article 24A or Amend Annex

ECWVTA

EC Small Series- COC

Nat. Small Series

HIVA-COC

Large Manufacturer

NIVA

EC CitizenSME’s

Technical bar can stay high for mass volume-prevent

Landwind/Brilliance problem.

Prevent HHR abuse

Real IVA as per Article 24 Wording.

Subsidiarity maintained with regulation

close to SME/Citizen

Only available for Official Importer/

Manufacturer

Not available to Manufacturers

Low chance of abuse

Page 23: Individual Vehicle Approval in Europe

SUBSIDIARITYSCALE OF VEHICLE APPROVAL

All COCVehicles

Small National Manufacturers

Multi-NationalManufacturers

SMECitizen

AllHarmonised Regulations inc HIVA ?

> 99% ParcNational

Regulation close to the SME/Citizen

Huge Single Market Benefits

National Regulation achieves

proportionality respecting MS unique safety

and environmental objectivesMutual

Recognition

Page 24: Individual Vehicle Approval in Europe

Benefits of Solution• High Safety and Environmental standards maintained

• Low Risk of Abuse-SME’s only import in very low volume

• Subsidiarity Respected- Regulations are targeted at correct level

• EC HIVA or EC Small Series amendment for benefit of manufacturers

• Proportionality-No unintended consequences

• Better Regulation- European Simplification Plans complied with

• Single Market rules respected HIVA=COC NIVA=MR

• Small Business Act of Europe- “Think Small First”

• Competition and Consumer Choice maintained

• Results of Stakeholder Consultation in 2007/46/EC respected

Page 25: Individual Vehicle Approval in Europe

INDIVIDUAL VEHICLE APPROVALIN EUROPE

The problem and a proportionate solution

Presented by Anthony Cohen-Chairman AIAA on18th January 2010 at the European Commission