Annual Report 2013
THANK YOU.
Mobility binds us together. It allows us to discover new things, meet
friends, go to work, run errands. And it makes growth and prosperity
possible for all of us.
Our mobility today would be inconceivable without the invention of the
automobile over 125 years ago. And with ten patent applications a day
in this land of ideas, it is reinvented every day. The result is increasingly safe, environmentand climate-friendly, and comfortable mobility for all of us.
We owe this to the more than 740,000 people who have made Germany the
most successful automotive nation in the world. We are presenting some of
them here. And we extend our thanks to all of them.
www.vda.de
www.unsere-autos.de
Annual Report 2013
7
Foreword
The German automotive industry is wherever the markets are. This strategy has again
proved successful over the past year. Our manufacturers and suppliers are increasing their global focus and were able to take advantage of the growing automotive
economy outside of Western Europe. The global passenger vehicle market grew by
4 percent to 68 million units in 2012. The Chinese market was primarily responsible for
this growth, along with the recovered US market. German manufacturers benefited,
increasing their market share in China to 22 percent and gaining market share in the
US for the seventh year in a row. Our ambitious goal is to maintain our share of the
global market at around one-fifth and to further expand it. There is no question, the
German automotive industry’s growth opportunities lie in international markets.
In Western Europe, however, we will have to adjust to an extended period of scarcity.
The passenger vehicle market in Western Europe shrank by 8 percent to 11.8 million
new vehicles in 2012, with the low demand continuing into the first months of 2013.
Only companies with strong sales in the US and Asia are able to effectively balance
the slowdown in domestic markets through growth in these other regions. Despite the
current weak situation, Western Europe remains one of the world’s most important
automotive markets: every other new car sold in Western Europe bears the logo of a
German parent brand.
The ongoing debt crisis in the eurozone has left customers feeling unsettled. The crisis
still has a strong hold on France, Spain and Italy. It can only be overcome through
implementing structural changes for the long-term while simultaneously stimulating
growth potential in individual countries. What is needed, therefore, are government
policies that put industry back in the center, instead of overwhelming it.
The German automotive industry is working energetically to further reduce vehicle
CO2 emissions. The current CO2 regulation provides for a reduction of 19 percent
between 2006 and 2015. For 2020, the European Commission has set a long-term
target for passenger vehicles of 95 g/km CO2. The means more CO2 savings in even
less time; namely 27 percent in only 5 years! This is a very ambitious goal that cannot
be achieved solely by optimizing conventional drive systems. It requires a constantly
greater share of vehicles with alternative drive systems. But in order for this to occur,
appropriate framework conditions must be put into place. It would be very unfortunate if Brussels were to make it even more difficult to achieve the goal. Flexibility
measures such as supercredits and eco-innovations are absolutely necessary to make
headway in this area. In terms of supercredits, the significant offsets in China and the
USA provide a model of a level playing field for Europe. Any discussion – such as that
already ongoing in Brussels – of new CO2 limits before 2020 is completely premature.
In this connection, we expect from the political community more understanding for
the economic perspective and for what is physically and technically feasible. The
objective is to strengthen Europe as a site for industry – and not to engage in a game
of “who can offer less.”
By the end of the next decade, two-thirds of humanity will live in cities – this is why
we’re driving ahead with technologies to serve urban mobility needs. This includes
bolstering electromobility: by the end of 2014, our manufacturers will launch 15 electric car models, including plug-in hybrids, range extenders and completely batterypowered vehicles.
for ewor d
8
We are remaining true to our strategy of “staying away from oil”. But ultimately, it’s the
customer who decides – purchasers of new vehicles must be convinced by the advantages of electromobility. The political community also needs to play its part to make
electromobility an attractive alternative for a great number of people.
Automotive manufacturers and suppliers in Germany are consistently pursuing their
diversified strategy: “Save – Supplement – Replace” as no one today knows for certain
which alternative drive technology will stand the test of time. There are many indications that several different drive systems will find acceptance and come to be used
over the long term. Cities will likely see more use of alternative drive systems, while
the conventional combustion engine will remain a necessary staple in rural regions
for years. The challenge is to maintain the capacity to invest the amounts needed to
develop these various options.
In addition to further advances in increasing vehicle efficiency, “networked driving”
is gaining in importance. Internet networking and the ability to exchange information
among all road users are major steps toward reducing resources and saving time –
the model of road traffic in the future. “Connected car” is becoming an increasingly
important criterion for customers seeking to purchase a new vehicle. German manufacturers and suppliers are leaders in this field of innovation.
We are concerned that protectionism has become more prevalent throughout the
world. The idea that it is possible to protect one’s own economy by blocking imports
and imposing import duties remains firmly entrenched in many parts of the world.
Yet attempting to evade the harsh wind of international competition will weaken
countries’ economies over the mid and long term. The planned free trade agreement
between the EU and the USA is a welcome signal in support of open markets. Developing common standards and guidelines, and eliminating import duties on both sides
of the Atlantic will unleash new economic forces.
The success achieved by our companies in many markets around the world is mainly
attributable to their rapid rate of innovation. We invest more than 20 billion euros
annually in research and development. We did not reduce our R&D budget during the
2008—09 crisis and we won’t do it now! Maintaining it is the only way to ensure the
success of Germany as a production site, to safeguard jobs, and continue the German
automotive industry’s success story around the world.
The German automotive industry once again redefined standards in 2012 – in terms
of consumption efficiency, safety, quality, comfort, design and networking. This year’s
VDA Annual Report describes both the challenges our industry faces on a daily basis
and the innovative and exciting ways we rise to meet them. The VDA will continue to
devote its efforts to bringing together the players in the automotive industry and lending them a strong voice.
With best regards,
Matthias Wissmann
President, German Association of the Automotive Industry
9
Contents
Foreword7
Dates, Facts and Figures
Facts and Figures – a Summary
The Situation in the Automotive Industry
Internationalization of the German Automotive Industry
The Situation Regarding Commercial Vehicles, Trailers, Bodies and Buses
The Situation in the Automotive Supplier Industry World Economy and World Trade
Market Access, an International Comparison
Trade Agreement
Protectionism International Supply of Raw Materials and Price Developments
Energy Costs as a Location Issue
The European Sovereign Debt Crisis
European Policy – Changes in Industrial Policy
13
14
17
32
34
36
43
44
46
49
51
52
56
58
Climate and Environmental Protection Policy 61
Reducing Classic Pollutants 62
CO2 Regulations 65
Tire Classification (Tire Labeling)
72
76
Technical CO2 Reductions Affecting Heavy Commercial Vehicles
Coolants77
Biofuels and Sustainability
79
Occupational Safety
86
REACH – Still Flawed
87
Dangerous Goods – Electromobility Unthinkable without Battery Transport
88
The Outlook for EU Environmental Policy
89
Transport and Infrastructure Policy
95
The Importance of Road Transport, Today and Tomorrow
Financing of Highways
Better Use of the Highways
Traffic Safety 96
100
106
108
contents
10
Taxes and Customs
Tax Policy – Update and Outlook Energy Taxation
Company Car Tax – No Subsidies Electric Vehicle – New Taxation Rules
Vehicle Taxes Customs Questions Powertrain Engineering
111
112
114
117
120
123
127
131
“Worldwide Harmonization,” Basic Principles 132
Combustion Engines
134
Hybrid Drive
135
Electromobility136
Natural Gas Drive
138
The Fuel Cell
139
“Clearly Better”– the Clean Diesel Offensive in the USA
140
Vehicle Safety
General Development of Safety in Road Traffic, Accident Figures
Rescue Data Sheet – Database – License Plate Check
Extended Fields of View for Commercial Vehicles
On the Way to Even Greater Safety in Road Traffic:
“Naturalistic Driving Studies” Research Project
Acoustic Perception Capability of Electric Vehicles
Safety of Electric Vehicles
Driver Assist Systems for Light and Heavy Vehicles
Protection Against Theft
143
144
146
148
149
150
152
153
155
Networking157
Networking158
CarIT as a Strategic Task
159
Car-to-Car/Car-to-I Communication
162
Automated Driving
164
Technical Specifications and Standardization 167
Worldwide Harmonized Light-duty Test Procedure (WLTP) –
The New Emissions Cycle
The Main Inspection
New Version of the Limit Values for Noise Emissions
EC Type Approval for Motor Vehicles
Standardization, Work of the Materials Council
Standardization, RFID Identification of Prototypes
Standardization in Electromobility
Electronic Systems for Indirect Vision
The Digital Tachograph
168
169
170
173
175
178
179
181
184
11
Law, Sales and Aftersales
A New Age of Car Sales
Aftersales – a Stabilizing Factor in the Automotive Industry
Automotive Banks Continue to be Successful in 2012
Protection for Innovations – Patents and Design Patents Public Procurement - New Requirements for Motor Vehicle Purchasing
Automotive Aftersales
Quality Management
Quality: The Trademark of the German Automotive Industry
Management Systems for Traffic Safety – Standardization Process Complete
Historic Vehicles
Consistent and Continued Commitment to Vintage Vehicles
Political Work Based on Data Accident Statistics for Historical Vehicles
The Charter of Turin as a Future Guideline for Historical Vehicles
Political Activities
187
188
190
192
195
200
202
205
206
209
211
212
213
214
215
216
Logistics219
Challenges Faced by Logistics
Results of Committee Work
Trade Shows and Events
Looking Back and Ahead: IAA The 15th Technical Congress 2012
The 13th VDA Meeting of Small and Medium-Sized Companies The 9th QMC Quality Summit at Hockenheimring and Other Events
Sponsored by the VDA Quality Management Center
VDA Logistics Department Events
Trade Shows Abroad, Cooperative Events
220
221
227
228
232
233
234
235
236
Index239
List of Figures and Tables
240
Index242
Imprint245
Cover: Raphael Colberg - Technical Student, Webasto Group, Stockdorf
Dates, Facts and Figures
Eugen Wurzer - Bachelor of Science in Mechanical Engineering with a Specialty in Vehicle Body Design, Project Leader Project
Management and Acting Department Manager Simulation, Semcon Ingolstadt GmbH, Ingolstadt
D at e s , Fa ct s a n d F i g u r e s
14
Facts and Figures – a Summary
2012 turnover: at a high level
In 2000, the German automotive
industry’s turnover hit a new record
In 2012, the German automotive industry’s turnover reached a new record high:
domestic companies managed to grow their revenues by 2 percent to a total of
around 357 billion euros. In the process, at more than 128 billion euros, domestic
turnover reached the previous year’s level. In foreign markets, on the other hand,
companies increased turnover by 3 percent to fully 229 billion euros. This equates to
almost two thirds of total turnover. The significance of foreign trade has thus grown
continuously since 1997.
German motor manufacturers: Driving force
behind foreign turnover
In 2012, passenger car and commercial vehicle manufacturers generated total
turnover of around 280 billion euros (plus 2.4 percent), thus constituting the strongest
manufacturer group. Domestic turnover was 0.4 percent up on the previous year’s
performance at fully 80 billion euros – a higher total was achieved only in 2007 and
2008. In terms of foreign business, the companies achieved a turnover of almost 200
billion euros (+3.3 percent), again emphasizing the attractiveness of their products
abroad with a new record performance.
Turnover trend in the German automotive industry
Sales in million units
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Domestic turnover
Turnover from abroad
Source: Federal Statistical Office
15
Suppliers: Slightly less momentum
German suppliers more or less managed to maintain the previous year’s high level.
The overall turnover of 68.4 billion euros was only 1 percent below the 2011 peak.
The momentum did however slacken as the year progressed. Both the domestic
market, with a turnover of 43.8 billion euros, and the foreign business, with 24.6
billion euros, just about managed to retain their respective previous year’s levels.
The ongoing economic weakness in Europe manifested itself as expected in the
foreign turnover – it was unable to increase its share significantly (from 35.90 to 35.97
percent) relative to 2011. Almost two thirds of total turnover was thus accounted for
by business in the domestic market — it continues to demonstrate its status as the
anchor of stability.
The domestic market is the anchor of
stability for the suppliers
Research and development: Engine of success
In 2012 as well, the automotive industry was again far and away the most researchintensive sector in Germany. At 16.1 billion euros (+2 percent), according to budget
figures, it contributed more than 30 percent to total domestic research expenditure in
Germany. If one includes in that a proportion of the R&D expenditure outside Germany, which in 2011 was just less than 6 billion euros, this yields a total R&D spend of
fully 22 billion euros. This premium sector was and remains a pioneer in developing
innovative technology from Germany. This applies both to safety equipment and
powertrain efficiency enhancements and thus to CO2 reduction. In this context, in
addition to drivetrain optimization, research into new battery concepts and lightweight
materials plays an important role. A further important area of innovation is the increasing networking of vehicles by means of Internet-enabled on-board computers. The
positive employment trend continued in 2011. Employee numbers in the R&D areas in
2011 totaled 88,500. That is 1,600 R&D staff more even than in 2007, before the crisis
struck.
The automotive industry continues to
be Germany’s most research-intensive
sector
D at e s , Fa ct s a n d F i g u r e s
16
Employment situation: Still gratifying
Employment was up in all three
manufacturer groups
Average annual employment in the German automotive industry in 2012 has
increased by 3.1 percent to 742,200 employees. This is all the more remarkable as last
year the eurozone was in recession, even deepening at the end of the year. This was
reflected in a weak European passenger car market. Because of the German automotive industry’s successes in the growth markets outside the eurozone, the German
automotive companies still managed to create 22,700 new domestic jobs.
A glance at the three manufacturer groups shows that employment increased
across the board: in the motor vehicle and engine sector, employee numbers grew
3.6 percent to 419,600 people. That equated to an increase in the workforce of 14,300
employees. This development confirms yet again the adage that increasing local
production by manufacturers abroad safeguards domestic jobs.
Supplier employee numbers in 2012 increased by 2.7 percent to 291,800 workers.
This was assisted by the stable German market as manufacturer group III continues
to generate the lion’s share of its turnover in Germany.
Last year, the trailer and body manufacturers took on an additional 700 employees,
representing growth of 2.3 percent to a workforce 30,900. The headcount in the trailer
industry thereby returned to its 2007 level.
Workforce in the German automotive industry
Change in percent
6
5.0
3.5
4
3.5
2.6
1.8
2
3.1
2.3
2.7
0
-2
-2.0
-2.2
-3.0
-4
-3.5
-3.7
-4.6
-6
-8
-8.8
-10
2009
-9.2
2010
2011
2012
Manufacturer
Parts
Bodies
Automotive industry
Source: Federal Statistical Office
17
The Situation in the Automotive Industry
Global motor industry: World market on course
for growth
Overall, 2012 was a good year for the automotive industry. World sales of passenger
cars increased to a new record level of 69.1 million units. That equates to growth
of 6 percent. However, regional variances – as in 2007 – were very pronounced.
Whereas the automotive “hot spots” fulfilled their expectations – such as China –
or exceeded them – for example, in the USA – the atmosphere was icy in Western
Europe, the third leading market.
Market fortunes were also varied in the commercial vehicle business. Once again the
USA posted a good year – albeit signs of a slowdown were evident in the last quarter.
The Chinese market slowly seems to be climbing out of the trough – after a long
phase of consolidation. In Western Europe, on the other hand, as expected, new registrations in all weight classes fell significantly. The German market was also unable to
escape this difficult environment..
New motor vehicle registrations worldwide by region
Region
2011
2012
Change in %
Europe
19,649
18,575
-5.5
14,684
13,408
-8.7
921
891
-3.3
4,044
4,275
5.7
20,113
22,157
10.2
NAFTA
15,596
17,525
12.4
thereof USA
13,041
14,786
13.4
Mercosur
4,517
4,632
2.6
of which Brazil
3,633
3,802
4.6
30,594
33,644
10.0
Japan
4,210
5,370
27.5
China
18,505
19,304
4.3
India
3,292
3,580
8.8
South Korea
1,580
1,542
-2.4
Others
3,008
3,849
28.0
Other countries
8,061
7,696
-4.5
Total
78,417
82,072
4.7
Western Europe
New EU countries
Eastern Europe
America
Asia
Source: VDA
Global passenger car sales have risen
to a new record level
D at e s , Fa ct s a n d F i g u r e s
18
US market: Stronger than China
Unexpected dynamism in the
US market
In 2012, the US market grew by 13 percent to 14.4 million light vehicles (passenger
vehicles and light trucks). Not even the experts had counted on such dynamism. While
the economic indicators gave no cause for concern, nor did they initially point to such a
positive development. The unemployment rate fell by 0.7 percentage points (December
2012: 7.8 percent), real estate prices staged a moderate recovery from mid-2012 and
GDP was up 2.2 percent. Demand was driven by pent-up replacement and backlog
demand. Vehicles dating from the high-selling years 1999 to 2003 are now of an age at
which repair costs are escalating steeply and replacement is the economically sensible
alternative. The average age of light vehicles in the USA was 11.2 years.
In 2012, the passenger car segment in particular managed to gain ground. With
fuel costs approaching the 4 dollar mark (per gallon) on a number of occasions,
purchasers last year preferred the more fuel-efficient passenger car models to light
trucks. This compared with plus eight percent to 7.2 million units in the light trucks’
segment. In 2012, the share accounted for by the passenger car segment, where
German marques are traditionally better placed than in the Light Truck segment, was
again 50 percent (year before: 48 percent).
Brazil: Turbulent year
German manufacturers benefited
from the positive development in the
Brazilian light vehicles market
The year 2012 proved to be a year full of turbulence for the Brazilian motor industry.
A noticeably darker economic outlook and tighter credit markets initially pushed the
light vehicles market significantly below the previous year’s level at the beginning of
2012. Government incentives helped to turn the corner in the second half of the year: In
addition to a lower industrial product tax, IPI, a reduction in the taxation of private loans
significantly stimulated demand for light vehicles – 2012 saw the Brazilian motor market
finish the year with 3.6 million Light Vehicle registrations (plus 6 percent).
Long-term development of LV sales in the USA
Numbers in 1,000s
25,000
20,000
15,000
10,000
5,000
0
19
95 996 1997 998 999 000 001 002 003 004 005 006 2007 008 009 010 011 012
2
2
2
2
2
2
2
2
2
2
2
2
1
1
1
Passenger cars
Light trucks
Total light vehicle sales
Source: Ward’s
19
With their market share increasing to around 22 percent, German manufacturers
benefited disproportionately from the positive development on the Brazilian light
vehicles market.
Japan: Strong market incentives –
market recovery after 2011
In 2012, the Japanese passenger car market reached its highest level of new registrations since 2006 with 4.6 million units. Two factors accounted for the 30 percent
increase. Lower new registrations in 2011, caused by the natural catastrophe and its
consequences, resulted in a base effect with knock-on consequences for the first
three quarters of 2012. Double-digit growth in replacement and backlog demand was
seen from the fourth quarter of 2011 onward. The most important boost, however, was
the government program to promote the purchase of environmentally friendly and
fuel-efficient passenger cars, introduced in mid-December 2011. State incentivization
resulted in double-digit growth rates in demand between January and August 2012.
New registrations peaked in April, with passenger car sales doubling compared with
the same month the year before. The government stimulus program was originally
scheduled to run until January 2013. By the end of September 2012, the budget of
almost 300 billion Yen had already been used up.
The government’s stimulus program
resulted in the highest level of new
registrations since 2006
China’s market again very strong
In 2012, the Chinese motor industry regained momentum. More than 13 million
passenger cars were sold in the People’s Republic – that meant that despite a period
of slight economic weakness, the world’s second-largest individual market grew last
year by all of 8 percent.
Motor vehicle sales in China
Numbers in 1,000s
19,303,901
13,644,794
15,000
18,505,144
18,061,936
20,000
2,363,217
3,248,511
4,391,642
4,574,429
2000
2001
2002
2003
2004
9,336,326
8,791,523
7,215,525
2,090,097
5,000
5,322,089
10,000
0
2005
2006
2007
2008
2009
2010
2011
2012
Source: CAAM, Fourin
China posts an increase in new car
purchases
D at e s , Fa ct s a n d F i g u r e s
20
Rising household incomes in the Chinese middle class ensured stable consumption –
and, consequently, increased new-car sales. In addition, the subsidy package introduced by the Chinese government in May, to promote smaller vehicles with engines up
to 1.6 liters in size, is likely to have stimulated passenger car sales. Notwithstanding
this, 2012 was again unable to replicate the high growth rates of the past. Registration restrictions in the major conurbations put a damper on the passenger car market.
Currently, however, China’s market is still far from having reached saturation point:
the low level of motorization (passenger car penetration at the beginning of 2012 was
only 37 vehicles per 1,000 inhabitants) combined with increasing urbanization provide
further scope for growth in the years ahead.
India: Could do better
The engine of the Indian passenger car market, accustomed to success, misfired in
2012. While sales managed to grow by a good 10 percent – with new registrations
of around 2.8 million new cars, the market potential last year was probably not fully
exploited. Growth drivers such as the low per capita density of vehicles (16 passenger cars per thousand inhabitants at the beginning of 2012), a rising standard
of living and the increasing proportion of the population of working age typically
lead one to expect higher growth of new car purchases in an up-and-coming
economy such as India.
Motor vehicle sales in India
in 1,000s
3,000
2,500
2,000
1,500
1,000
500
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: SIAM
21
The motor industry in 2012 was held back by hesitant economic growth and massive
inflationary pressure. In addition, an increase in operating costs (high purchase,
financing and fuel costs) exercised a dampening effect on private demand for
passenger vehicles.
In the medium-term, however, the Indian automotive market remains a growth market,
and positive effects are anticipated from the reform package put together by the Indian government in September.
Russia: New sales record
Light Vehicle sales in Russia were on course for a record last year. High revenues from
oil and gas exports ensured rapid economic recovery and consequently, stabilization
of private consumption after 2009, a year of crisis. Low unemployment, rising wages
and Russian consumers’ low savings ratio further boosted new car sales in 2012. With
new registrations of 2.9 million units, the Russian light vehicles market recovered its
2008 pre-crisis level astonishingly quickly. Towards the end of the year, however, the
global economic slowdown had also reached Russia, and increasing macroeconomic
risks – owing to the high dependency on raw materials exports – restricted private
demand and thus new car purchases. Following double-digit monthly increases to
September 2012, latterly the growth rates on the Russian light vehicles market in the
fourth quarter were down to +5.3 percent (October), +0.4 percent (November) and
+0.6 percent (December).
Passenger car sales in Russia
Change relative to previous year’s quarter in percent
80
60
40
20
0
-20
-40
-60
Q1 Q2 Q3 Q4
2009
Q1 Q2 Q3 Q4
2010
Q1 Q2 Q3 Q4
2011
Q1 Q2 Q3 Q4
2012
Source: AEB
Low unemployment and rising wages
ensured a positive mood in Russia
D at e s , Fa ct s a n d F i g u r e s
22
Eastern Europe: Characterized by insecurity
Poland defended its position as the
biggest passenger car market
The picture for passenger car sales in the new EU member states was also mixed,
but more stable overall than in the Western member countries. Poland defended its
position as the biggest market – although passenger car registrations were comfortably 1 percent lower than the year before at 274,000. Registrations in the Czech
Republic stagnated at 174,000 passenger cars. Hungary’s development was gratifying: 18 percent more new passenger cars were registered than in 2011. However,
with 53,000 units, the level remains low. By way of comparison, as recently as 2007,
the Hungarian passenger car market achieved a volume of almost 172,000 units. The
macroeconomic challenges in Hungary resulted in a very weak market – this will not
change, even in the medium-term.
Western Europe: Significant decline in important
countries
Countries affected by the debt crisis
posted falls in sales
As anticipated, demand for passenger cars in Western Europe in 2012 fell by 8
percent to just short of 11.8 million vehicles. Germany as well proved more robust
than the Western European market as a whole.
With 2.04 million new registrations and an increase of 5 percent, the passenger car
market in Great Britain in 2012 reached its highest level since 2008 and the strongest growth since 2001. Strong purchase incentives (low interest-rate, manufacturer
discounts, good financing terms) and solid consumer sentiment – compared with the
eurozone – resulted in a 13 percent growth in private demand.
Passenger car sales in Central and Eastern Europe
Change 2012/2011 in percent
17.6
Hungary
14.5
Ukraine
10.6
Russia
Bulgaria
1.9
Slovakia
1.6
Baltic States
1.4
Czech Republic
0.4
-1.4
Poland
-6.3
Turkey
-16.7
Slovenia
Romania
-20
-18.7
-15
-10
-5
0
5
10
15
20
Source: VDA
23
In France, on the other hand, 2012 saw a significant correction to the passenger
car market. The first full year without a car scrappage bonus and the rapidly
increasing pressure on the French economy resulted in a 14 percent decline to
1.9 million units.
With 1.4 million new registrations (minus 20 percent), the Italian market in 2012
was at its lowest level for decades (since 1979). Drastic economy measures,
a high level of uncertainty and rising running costs resulted in distinctly restrained
purchasing behavior.
The introduction of a government car scrappage bonus in the Spanish market as of
mid-October 2012 produced no positive impetus for the last quarter. For a vehicle at
least 12 years old there was a new car purchase subsidy of 2,000 euros funded half by
the government and half by the manufacturer. Almost 80 percent of the government
budget for the first phase of the scrappage premium in Spain had been used up by
the end of December. Despite this fact, the 2012 market ended 13 percent down. The
Spanish passenger car market has thus shrunk 57 percent since 2007. The extension
of the subsidy program (PIVE-2) came into force at the beginning of February 2013.
New passenger car registrations in Western Europe
Change 2012/2011 in percent
5.3
UK
-13.4
Spain
2.9
Switzerland
-8.2
Sweden
-37.9
Portugal
-5.7
Austria
-0.3
Norway
-9.6
Netherlands
1.0
Luxembourg
-19.9
Italy
-11.5
Ireland
Greece
-40.1
-13.9
France
-11.8
Finland
-2.9
Germany
0.4
Denmark
-14.9
Belgium
-50
-40
-30
-20
-10
0
10
Sources: ACEA, VDA
D at e s , Fa ct s a n d F i g u r e s
24
Commercial vehicles Western Europe:
Overshadowed by economic worries
The European commercial vehicle
market in 2012 had to accept falls in
all segments
The commercial vehicle business globally is very cyclical. It responds faster and more
markedly to changes in macroeconomic demand. This close correlation was also
evident last year.
The European commercial vehicle market in 2012 was characterized by significant
falls in all segments and virtually all markets. Light commercial vehicles’ sales in
Western Europe declined by 13 percent to not quite 1.4 million units. This level is
only 40,000 vehicles higher than the trough of the 2009 crisis. All markets – with the
exception of Switzerland – had to accept losses. In Italy, new light commercial vehicle
registrations fell by 32 percent, in Spain by 27 percent and in France by around
11 percent. Great Britain posted an 8 percent fall.
In the heavy category (above 6 t), the 2012 market volume was just shy of 236,000
vehicles. By way of comparison, in the crisis year 2009 it was 200,000 units.
The fall in demand affected almost all major Western European markets: France minus
8 percent, Italy minus 31 percent, Spain minus 20 percent. Only Britain managed a
small growth in sales of 3 percent.
The German passenger car market in 2012:
Stable but no reason to rejoice
Private customers in 2012 were
noticeably restrained
Compared with the rest of Europe, the German passenger car market in 2012 proved
very stable. New passenger car registrations totaled just short of 3.1 million. This
confirmed the VDA’s own estimate. However, this result is no reason for celebration.
The market was more than 2.9 percent down on a rather mediocre previous year’s
performance.
New HGV registrations in excess of 6 metric tons in selected Western Europe
Numbers in 1,000s
100
80
60
40
20
0
DE
FR
UK
2008
IT
2009
ES
2010
2011
2012
Source: VDA
25
Private customers in particular were once again very restrained – new private registrations fell by a total of 8 percent over the year. With fewer than 1.2 million units, the
proportion of private customers fell to no more than 38.2 percent. That is the lowest
share since 2007. At that time, however, the reverberations of the VAT increase were still
being felt, customers had already brought a number of purchases forward to 2006.
Accordingly, business registrations in 2012 accounted for just under 62 percent of the
total passenger car market. That equates to more than 1.9 million new registrations and
as such is a stable result (+0.4 percent) compared with the year before. Company cars
are the most important group within business registrations. In 2012, just less than 32
percent of all new passenger car registrations were company cars. Admittedly, sales of
company cars were slightly down as well. Whereas in 2011 there were still more than
990,000 new passenger car registrations, in 2012 this fell to just under 980,000 units
(-1 percent). Ordering activity by German customers was distinctly weak throughout
the whole of 2012.
There was a decline in incoming orders on a monthly basis; the domestic order book for
the full year was just under 8 percent down on 2011. This muted incoming order performance had begun back in the summer of 2011. The debate about the euro crisis was
gaining considerable traction at that time – this evidently had the effect of unsettling the
consumer so that the falloff in ordering behavior can come as no surprise.
A corresponding impact was also evident in the order book. The German marques and
importers had begun 2012 with 612,000 orders; by the end of the year the order book
had shrunk to 436,000 units. On average for the year, there were more than 537,000
domestic orders on the books. On a long-term comparison, that is still a high figure.
New car registrations
Annual basis (numbers in 1,000s)
5,000
4,000
3,000
2,000
1,000
0
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20
Source: Federal Motor Transport Authority
D at e s , Fa ct s a n d F i g u r e s
26
German marques confirmed the
previous year’s good result
In 2012, the German marques achieved almost a 71 percent share of the domestic
market, thereby once again confirming the previous year’s good result. Among importers, however, the structure has changed significantly.
The French marques suffered the biggest losses. Total registrations of French-branded
passenger cars in Germany were down to no more than 283,000. That equates to a
market share of 9.2 percent. Only the year before the figure was 9.8 percent. Despite
that, they remain the strongest import nation in the German market. Italian competitors also lost market share (2.8 percent, year before: 3 percent), the Japanese also
suffered a decline of 0.4 percentage points to 9 percent.
Unperturbed by the relatively weak market environment, Korean manufacturers’
good progress continued; they increased their market share throughout the year
by one percentage point to 5.1 percent. However, this success is not attributable
to strong demand by German customers alone. The percentage of “tactical registrations” was particularly high: more than 40 percent of new registrations were
accounted for by dealers.
The change in the segment structure of the German market continued in 2012. Once
again, the most dynamic group were SUVs. Their market share increased by 3.6
percentage points to 15 percent. This marked a continuation of the trend of recent
years. In absolute numbers, with 461,000 units sold, new SUV registrations increased by 28 percent.
The “diesel” success story continued in 2012. More than 48 percent of all new passenger vehicle registrations were compression ignition vehicles, a new record high. It is
also no surprise that diesel’s share among fleet customers is in excess of 70 percent.
Business customers in particular, who because of their high mileage have to pay close
attention to efficiency, cannot get away from the German manufacturers’ economical
Clean Diesel engines.
Market share by country of manufacture
New registration percentages
80
70
60
50
40
30
20
10
0
2011
German
2012
French
Italian
Japanese
Korean
Others
Source: Federal Motor Transport Authority, VDA
27
There are signs of movement with alternative drive systems as well; 21,000 hybrid
passenger cars were registered last year. That is an increase of more than two thirds
compared with the previous year’ figure. All electric propulsion vehicles managed just
under 3,000 new registrations last year.
Mobility costs: No lightening of the load despite
weaker economy
The year 2012 was the most expensive year to date for motorists in Germany. The car
cost index, which measures price increases for various components, rose 2.5 percent in
2012. As such, the cost of motoring has gone up by just under 20 percent since 2005.
Fuel costs were again the cost driver. Following growth rates of eleven percent in 2010
and 2011, respectively, pump prices increased by an average of 6 percent again in
2012. That made 2012 the most expensive year for fuel prices.
New passenger car prices, on the other hand, have again remained stable. Already in
2010 and 2011 the price index was virtually unchanged; in 2012 the index increased
only slightly, by 0.1 percent.
Development of mobility costs
Car cost index, 2005 = 100
140
130
120
110
100
90
80
2006
2007
2008
2009
Fuel
2010
Used cars
2011
New cars
2012
Total car costs
Source: Federal Statistical Office
In recent years, gasoline and diesel
costs have risen by a double-digit
percentage figure
D at e s , Fa ct s a n d F i g u r e s
28
Domestic production: Year-end slowdown
Domestic production was just short
of the previous year’s record
Domestic factory output of 5.4 million passenger cars in 2012, after adjusting for
CKD, was 4 four percent below the previous year’s record. German manufacturers last
year held their ground well in a significantly deteriorating Western European market
environment. The premium strategy had a stabilizing effect here and almost canceled
out the declines in the volume market. German automotive companies achieved good
capacity utilization in 2012 by producing new model generations and new models.
In the second half of 2012, passenger vehicle manufacturers significantly reduced
their domestic inventory. In addition to working-day effects, this was one reason for
the falls in output towards the end of the year. Towards the end of the year, the order
book was again significantly above the long-term average but was unable to catch up
with the previous year’ record levels.
Exports: The German automotive industry’s
stable mainstay
Last year, Germany’s passenger car export quotient attained 2011’s record level of
77 percent. In 2012, German manufacturers exported more than 4.1 million units.
After adjusting for CKD, that was 3 percent fewer passenger cars than the previous
record year. The German automotive manufacturers’ export successes are based on
a high level of technical expertise with Clean Diesel; the average proportion for the
year of compression ignition was 42 percent, only just short of the year before. Some
segments suffered declines, often related to a change in the value-added share for
a number of models, now recorded in the statistics as foreign production (and which
therefore no longer appear in the export statistics). Conversely, exports of sports cars
(+ 3 percent), vans (+ 9 percent) and utilities (+ 16 percent) posted increases.
As in the year before, the most-exported model was the VW Golf with 393,000 vehicles, ahead of the 3-Series BMW (281,000 units), the Ford Focus (244,000 units) and
the Mercedes C-Class with 234,000 vehicles.
Passenger car exports by country of destination 2012
Spain
4%
Other
Western Europe
10 %
America
19 %
Rest
4%
Benelux
6%
France
7%
Italy
5%
Asia
17 %
Eastern Europe
11 %
GB
17 %
Source: VDA
29
Export regions: Growth outside the eurozone
Last year as well, the export split between the individual sales regions again changed to the detriment of Western Europe. Whereas in 2009, 61 percent of passenger
car exports were still accounted for by other Western European countries, in 2012
this figure was only 48 percent. Particularly striking – even if not very surprising – is
the weak demand in the eurozone: 3 years ago, it still accounted for 40 percent of
all passenger car exports, in 2012 it plummeted to just under 27 percent. During the
same period, exports to the USA gained significantly in importance from 10 to 15
percent and to China from 4 to 7 percent. Eastern Europe as well increased its share
of German exports from 7 to 11 percent.
Potential backlog demand is building in
many eurozone countries
This shift can be expected to continue in the next few years – although the Western
European market remains very important for German manufacturers. A considerable
potential backlog can be expected to be building in many eurozone countries, which
will be catered for once the crisis is over. This will particularly benefit the German
marques. But a recovery is not yet apparent.
There is greater export potential for the German passenger car manufacturers in the
USA and in particular in the BRIC countries. The reasons for this are the tendency
towards high economic growth, the young population striving for individual mobility
and — in the case of the emerging countries — the ongoing relatively low density of
passenger cars.
German manufacturers will continue to be successful in catering for the expanding
need for automobiles in the up-and-coming economies of Asia and Latin America on
the back of their tried-and-tested twin-track strategy of rising exports and increasing
local production.
There is a high growth potential in the
BRIC countries
D at e s , Fa ct s a n d F i g u r e s
30
Foreign manufacturing: Pursuit of records
goes on
The German manufacturers’ foreign
passenger car production broke
through the eight million barrier
The German manufacturers’ twin-track
strategy leads to success
After adjusting for CKD (correction of the previous year’s figures based on the change
in the value-added share creation for a number of models), the German manufacturers’ foreign passenger car production in 2012 increased by 11 percent, breaking
through the eight million barrier for the first time. That means that local production
has more than doubled in the past 10 years. In the meantime three out of every five
German-branded passenger cars is produced abroad. At the same time, domestic
production in the past 10 years has risen by 5 percent to 5.4 million passenger cars.
The increasing focus on production sites outside Germany has thus not resulted in a
fall in domestic production, as in other large Western European automotive countries.
In 2012, almost one in every five passenger cars manufactured worldwide bore a
German logo.
The German manufacturers’ success in a challenging market environment can be
explained in the main by the twin-track strategy. In addition to a strong focus on
exports, it also comprises an expansion in foreign production. The advantages are
obvious: transport distances are shorter, bespoke models for the growth markets are
developed locally and the burden of import duties is reduced. Despite this, the strategy also secures jobs in domestic production and logistics as components or component sets are usually supplied from Germany.
Developments within the various regions in 2012 presented a mixed picture. There
was high growth mainly outside Europe; in Western Europe, on the other hand,
production declined by 6 percent to 1.51 million passenger cars. Production in Eastern
Europe increased by 16 percent to 1.46 million passenger cars with new models
resulting in significantly expanded production in Slovakia and Hungary. China is now
the most important foreign location. In China, 2.9 million German-branded passenger
cars rolled off the production lines in 2012. That equated to growth of 36 percent.
In America too, the German automotive industry is in a very good position. Output
increased by 16 percent to 2.05 million light vehicles. The greatest dynamism in this
segment was posted by the USA, where a new production site contributed to an
increase of a good third to around 640,000 units.
Commercial vehicle market: Troubled waters
New registrations of light and heavy
commercial vehicles in 2012 were
down
The deterioration in the economic environment over the course of the year did not
leave the German commercial vehicle industry unscathed. New registrations of both
light and heavy commercial vehicles were down this year.
The 6 percent drop to 226,000 units in the light commercial vehicle arena was,
however, within reasonable bounds if one considers that the previous year in
Germany had seen record registrations and, on the other hand, the decline in
Western Europe had been significantly more pronounced with minus 13 percent.
The German light commercial vehicle market proved yet again to be an anchor of
stability in the turbulent European sea.
31
The macroeconomic indicators relevant to commercial vehicle sales tended towards
stagnation in 2012. Road traffic mileage fell by 2 percent in the wake of the high
growth rates of previous years. Industrial output, which fell just short of the previous
year’s level, also provided no impetus. The situation regarding heavy goods vehicles
weighing more than 6 metric tons was correspondingly difficult. The simmering debt
crisis and associated uncertainties had a somewhat dampening effect on customers’
behavior. New registrations remained almost in step with the Western European
market, falling 10 percent to 81,000 vehicles. That put them only slightly lower than
the long-run average. The current market environment is determined by the Euro VI
standard mandated from 2014 onward. Large-scale anticipated purchases, however,
are not really on the cards because of the current rather restrained sales situation.
The German bus market staged a slight recovery in 2012. New bus registrations rose
by 2 percent to more than 5,100 units. Estimates of future developments are also
slightly positive as a result of the liberalization of the German long-distance coach
route market starting in 2013.
Overall registrations of new commercial vehicles
Broken down into quarters
100,000
80,000
60,000
40,000
20,000
0
Q1
Q2
Q3
Q4
2010
2011
2012
Source: Federal Motor Transport Authority
The liberalization of the German longdistance coach route market could
positively impact on the market
D at e s , Fa ct s a n d F i g u r e s
32
Internationalization of the German Automotive
Industry
Since 2010, the German automotive
industry has built more vehicles abroad
than it has domestically
The German automotive industry has a global presence: the German Association of
the Automotive Industry’s member companies produce vehicles, trailers and bodies as
well as components in more than 70 countries. In 2012, passenger car and commercial vehicle manufacturers produced 13.6 million vehicles worldwide. With 8.2 million
foreign-produced passenger cars in this total, more vehicles were produced abroad
than at home (5.4 million) for the third time in succession since 2010.
But not only the manufacturers are represented internationally. Nowadays, German
suppliers have around 1,700 production sites abroad; in 1996 a VDA survey revealed
only 950 supplier locations abroad. Globalization is therefore not a new phenomenon, it
has simply achieved a new dimension. Germany as a business location faces a corresponding challenge in view of the strong growth in foreign production in recent years
and the numerous initiatives by various countries to attract investment. What is required
is to create an attractive environment for Germany as a production and export location.
That covers both domestic conditions as well as improved access to foreign markets.
33
Germany is an export nation, but is also open for imports. Imported marques currently
account for around a third of German new registrations. If German-branded vehicles produced abroad are added in, more than 50 percent of vehicles registered in
Germany now come from abroad. On the one hand, the globalization of trade is
being spurred on by the dismantling of trade barriers. International trade is becoming
cheaper as a result of the reduction in customs duties and the dismantling of nontariff
barriers to trade. At the same time, the globalization of investment is being driven by
market developments, but also by measures to promote investment that can verge on
protectionist tendencies. If market access by imports is made more difficult by barriers
to market access, local investments have to be made in order to participate in the
market’s development. The VDA keeps a close and very much critical eye on these
developments. The Federal Government, the European Commission as well as the
World Trade Organization, WTO, are the custodians of fair market access and equal
competitive conditions for all participants.
Germany is also a global player when
it comes to importers
The proportion of vehicles manufactured in Germany that is exported has increased
continuously — until the 2009 economic crisis (1996: 59 percent, 2008: 74 percent, 2009:
69 percent, 2010: 76 percent) — while foreign production has also increased steadily,
exceeding domestic production for the first time in 2009. The dynamic growth in foreign
production is primarily attributable to the expansion of production sites abroad. Since
2000, foreign production has exceeded the number of vehicles exported.
In 1996, VDA members produced more than 2.7 million vehicles (passenger cars and
commercial vehicles). In 2012, the volume had almost trebled.
Total motor vehicle domestic and foreign production and exports
Year
Foreign production
Change in %
Domestic production
Change in %
1992
1.55 million
1996
2.43 million
58 %
4.54
-7 %
2.65 million
2000
3.7 million
52 %
5.13
13 %
3.46 million
2004
4.22 million
14 %
5.19
1%
3.67 million
2008
5.29 million
25 %
5.53
7%
4.13 million
2010
6.09 million
15 %
5.55
0%
4.24 million
2012
8.24 million
35 %
5.39
-3 %
4.13 million
4.86
Exports
2.57 million
Source: VDA
D at e s , Fa ct s a n d F i g u r e s
34
The Situation Regarding Commercial Vehicles,
Trailers, Bodies and Buses
Trailer and body manufacturers
The transport industry is assuming an
ongoing difficult environment
Following last year’s very dynamic development, the trailer and body manufacturers’
overall situation stabilized in 2012. New trailer registrations during the year were
slightly below the previous year’s high level at 242,200 units. Registrations of heavy
articulated trailers, however, fell by 5 percent to 26,500 units..
This solid overall performance, however, is up against the transport sector’s bleak
assessments and expectations, particularly at the end of the year. The current economic situation in this sector is seen as rather subdued. The weakening macro- economic dynamism is particularly evident in the business fortunes of German transport
companies. The relevant indices at European level have also deteriorated, especially at
the end of 2012. Unless the macroeconomic environment fundamentally changes, the
transport industry’s expectations are therefore currently of rather lower volumes in the
months ahead.
Robust demand from Russia and a
number of foreign markets
For trailer and body manufacturers this is reflected, for example, in the very different
fortunes being experienced by domestic and foreign markets. Whereas domestic
orders during the year remain significantly below the previous year’s level, foreign
orders in the same period increased by 2.7 percent. Demand from various Eastern
European countries in particular, as well as from Russia and Turkey, was described as robust. The slightly higher export quotient of around 50 percent is evidence
of companies’ high level of competitiveness and their broad-based presence. For
example, almost 50 percent of the European trailer market is accounted for by
German manufacturers.
The trailer and body manufacturers’ turnover dipped slightly last year by 2 percent to
8.3 billion euros. This masked a 2.2 percent increase in foreign turnover to just shy of
4 billion euros. Domestic turnover’s (4.4 billion euros) share of total turnover slipped to
52 percent (previous year: 54 percent).
Last year, with a total workforce of 30,900, the employment level was around 2.3 percent
higher than the year before, and at the same time at a 3-year high.
Especially during the financial and economic crisis, small and medium-sized enterprises in the trailer and body industry in particular set great store by a high degree of
flexibility and gained experience of relevant working time and employment models.
Especially in periods of economic weakness, this helps to maintain the permanent
workforce in being and thereby preserve long-term know-how and expertise within
the companies. The increasing shortage of skilled workers, on the other hand, is now
posing a challenge for more than half the companies in the industry. Not least against
the backdrop of demographic changes, the shortage of skilled workers in years ahead
can be expected to become more acute.
Most companies assume that the German and (Western) European commercial
vehicle market will not develop any significant momentum in the months ahead.
Instead, business is expected to flatline. In particular, there is currently uncertainty
about how the sovereign debt crisis in Europe will develop and about the economic
situation in the most important European markets, especially in southern Europe. All
the same, the increasing need for investment in the years ahead is fueling expectations of a strengthening demand. Corporate capacity utilization in 2012 was high,
but declined as the year progressed.
35
The Bus Market in Germany and Europe
The bus market in Western Europe – including Germany – is largely saturated and
currently lacks new momentum. Inasmuch as new vehicles were registered, essentially
they were replacing older vehicles taken out of service. In a multi-year comparison,
the number of new vehicle registrations has stabilized at a comparatively low level,
and in 2012 was down by around 2 percent at fewer than 30,000 vehicles in total.
In Germany, vehicle registrations (more than 3.5 metric tons) were up by around 2
percent at a little over 5,100 vehicles. The vehicle fleet engaged in scheduled (local)
routes and coach tourism is largely unchanged at around 76,000 units. The tight financial constraints under which the regional public authorities are operating are primarily
to blame for a renewed increase in the average age of the LPT vehicle fleets. The
continued modernization of the fleets is a particularly important task, but one that will
have to contend with a persistently difficult environment. The economic situation in
which coach tourism finds itself may be stable, but here too companies are grappling
with rising costs and an overall burdensome environment.
The liberalization of scheduled long-distance coach travel in Germany that came into
force at the beginning of 2013 ends a ban on such travel that has existed for decades.
This can be expected to stimulate the market. Nonetheless, the short-term effects on
the bus manufacturers should remain moderate. Here too, however, a further increase
in demand is to be expected in the coming years with the declared market entry of
large companies, both international and national.
The bus market in Western Europe
lacks new dynamic energy
D at e s , Fa ct s a n d F i g u r e s
36
The Situation in the Automotive Supplier Industry
Sales remain stable – employment on the rise
Sales figures for the German supplier industry fell slightly last year to 68.2 billion euros.
Despite the challenging international environment, sales figures remained high and
comparable to those from the successful year of 2011. Earnings in the first quarter were
actually considerably greater than for the same period in the previous year. The second
half of the year was characterized by an economic slowdown and lower sales figures,
however, which meant that the previous year’s average could not be exceeded.
Supplier industry sales remain high
German suppliers generated almost two-thirds of their earnings in the domestic market,
yet the foreign markets also remain very important. Foreign sales for 2012 totaled 24.5
billion euros, putting the value for the year 250 million euros behind 2011 sales. More
than half of foreign sales were generated within the eurozone. The stable order situation
ensured a steady demand for staff and safeguarded the employment situation in the
industry. The supplier industry employed an average of 291,700 over the year, about 3
percent more than last year.
Europe: Market of the future?
Suppliers’ global focus was key to their
success
The German supplier industry experienced varied results in 2012. Not all companies
shared equally in the industry’s good overall sales figures. The relative economic situations of the various companies were largely determined by the manufacturers’ global
focus and their own diversification.
80
340
70
320
60
300
50
280
40
260
30
240
20
220
10
200
Workforce in 1,000
Turnover in billion euros
Turnover and employment in the automotive supply industry
180
0
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Employees
Turnover
Source: Federal Statistical Office
37
Supplier companies whose OEM customers construct vehicles primarily for the
Western European market must expect a difficult commercial situation even in the
current year, due to the lasting effects of the euro debt crisis. Over the short and
mid-term, the economic policy decisions on budget consolidation made in the various
countries will largely determine the success of the Western European vehicle market.
Nevertheless, much effort was required at the company level in order to secure
Europe’s continued significance for global automotive production. The key factors for
manufacturers and suppliers are to maintain a high level of innovation and respond to
the challenges presented by structural changes. EU economic policy must also provide appropriate measures to ensure that Europe remains fertile ground for industry
and can remain competitive in the international market. Rising energy costs and strict
regulations are not the only stumbling blocks in the competition for the best international sites.
Suppliers would be wise to evaluate
their own value-creation strategy on
an ongoing basis
The German automotive industry will face considerable challenges in coming years.
All market players must accustom themselves to regional expansion and investment in
new technologies to an unprecedented degree, while managing difficult competitive
conditions. New markets such as alternative drive systems and vehicle networking
will present major challenges. To come out on top in the dynamic and complex market
environment of tomorrow, crucial factors for success include early recognition of
growth segments and markets, the constant review of one’s own value creation strategy and a steady view to the future in terms of competition.
Development in value added distribution by module
2002
OEMs
Supplier
2012
OEMs
Supplier
2025
OEMs
Supplier
Chassis
Driveline
Combustion engine and
gearboxes
Electric drives
No relevant scope
Body
Exterior
Interior
Electrical/
electronic systems
Source: FAST 2025
D at e s , Fa ct s a n d F i g u r e s
38
These are the findings of the recent study “FAST 2025 – Future Automotive Industry
Structure” by Oliver Wyman and VDA (Volume 45 of the series “Materials for the Automotive Industry”).
The way that OEMs and suppliers cooperate has undergone a lasting change due
to the increasing variety in terms of models and variants; shorter product life cycles;
comprehensive modular and assembly-based strategies; high dynamism around the
use of new technologies in vehicles; new focuses of development related to electromobility; and high cost pressure and capital intensity. These changes have resulted in
a redistribution of the respective share of OEMs and suppliers in the value-creation
chain. Smart sourcing in particular, the practice by OEMs of pursuing different sourcing strategies for different modules, will be highly relevant in the future. In general,
suppliers will also be able to further expand their share of the value chain as their
expertise in the individual vehicle modules grows. Suppliers can still look forward to
great potential in the modules for the electric drive system, combustion motor and
related assemblies, drivetrain, exterior and body.
Europe will continue to be an essential
region for automotive value creation in
the future
Within the arena of international competition, Europe can continue to rely on its
strong expertise in automotive production. Growth (including in added value) will
primarily take place in Russia and other Eastern European countries and will certainly
be to the detriment of development in Western Europe. The changing distribution of
value creation between manufacturers and suppliers, and the focus on new markets
in emerging countries will cause the supplier industry to face stressful processes of
adjustment. A particular challenge remains the trend of increasing production capacity in the booming sales markets. Nevertheless, Europe will remain an essential region
for automotive production in the future, and will dominate global production along
with China, according to the FAST study.
Europe remains an important region for automotive value added and, together with China, dominates the global industry
Development of value added by region/segment, selected region in billions of euros
Europe
2.8 %
North America
1.4 %
170
2012
240
200
2012
2025
China
340
5.3 %
300
2025
Japan and South Korea
150
0.6 %
2012
2025
India
10.2 %
South America
3.3 %
25
X.X %
35
50
2012
2025
CAGR (annual growth rate)
2012
170
185
2012
2025
90
2025
Compact
Volume
Premium
Source: FAST 2025
39
China: Market of the future
Emerging countries, such as China, will continue to grow rapidly in importance as
sales and production markets. The dynamic demand for passenger vehicles remains
strong in China. There were more than 13 million new passenger vehicle registrations last year – the first time this figure has exceeded that for Western Europe;
around a quarter were German brands. Suppliers with already established production activities in the region are profiting from this boom.
Automotive manufacturers continue to invest in the establishment and expansion of
production, sales and development sites, and expect their suppliers to do the same.
In recent years, China in particular has seen an enormous increase in production. In
2005, only 5.2 million vehicles (passenger and commercial vehicles) rolled off the line;
a huge contrast with 2012, which saw more than 19 million vehicles produced. With
a quarter of global vehicle manufacturing, China is now the largest production site in
the world. Value creation figures are rising accordingly. According to the “FAST 2025”
study, value creation in China is set to double by 2025. Along with Europe, China will
dominate global value production in the automotive sector in the future.
Especially suppliers with already established production activities in China
are profiting from the boom
Value creation in China set to double
by 2025
China is perpetually growing in importance for German vehicle manufacturers and
suppliers. Medium-sized companies too will have to step up their efforts.
VDA supports globalization and cooperation
The VDA advocates fair international competition and supports its members with
concrete measures in their efforts to globalize. Suppliers in some prosperous regions
have organized into clusters in order to promote more efficient cooperation. The VDA
also supports the exchange of information related to localization topics. One example
is the VDA Supplier Round Table, a network of CEOs from German suppliers in China,
which was founded in China in 2010.
The VDA assists potential investors by introducing initial contacts who can
help with finding sites, qualified personnel and help prepare written invitations.
Requests for this service should be directed to the Supplier Industry and Mediumsized Companies division.
For medium-sized suppliers, international activities are usually associated with relatively
high investment costs. The financial risk can be hedged through cooperation. When
looking for a partner to cooperate with, it makes sense to consult the VDA Cooperation
Portal. The online platform www.VDA-Kooperationsportal.de allows VDA members to
search for suitable potential companies to partner with in terms of markets, finances,
organization or technology, or to post offers for such types of cooperation.
The VDA List of Manufacturers assists with name searches for a supplier or manufacturer of a particular component. The List of Manufacturers is a database of automotive
suppliers in the VDA that includes all the major automotive suppliers in Germany and
a registry of their products. Visitors to the website www.VDA-Herstellernachweis.de
can search for companies and contacts. It is possible to search for components from
the automotive sector, postal codes, places or company names.
The List of Manufacturers database also forms an integral component of the supplier
database www.auto-world.org with a focus on regional searches. It contains supplier
companies that are VDA members as well as companies that are members of various
cluster initiatives in the German states and Benelux countries.
The VDA supports its members in their
globalization efforts
D at e s , Fa ct s a n d F i g u r e s
40
Support at the regional level:
VDA dialog in the German states
Along with representatives of the economic affairs ministries of the various German
states and regional supplier clusters, the VDA organizes a regular schedule of
meetings that provide a forum for participants to actively discuss the situation in the
automotive industry in the German states. The goal of all involved is to maintain and
strengthen competitiveness in the regions and Germany as a whole. The meetings
also provide an opportunity to discuss collaboration on initiatives and support from
the VDA. The “political” dialog in the German states is additionally held once annually
as an exclusive forum for representatives of the economic affairs ministries of the
German states. The primary agenda is to exchange information about current VDA
activities and changing factors influencing economic policy.
Being the innovation leader has a price
High investments in R&D are one of
the key success factors for the German
automotive industry
Suppliers perform their share of R&D efforts, often creating innovations that provide
the impetus for new technical solutions. High investments in research and development are one of the success factors for the German automotive industry. R&D expenses in the sector totaled almost 22 billion euros in Germany in 2011 – including
external expenses. According to the Association for the Promotion of Science in
Germany (Stifterverband der Deutschen Wissenschaft), research and development
departments in the automotive industry employed 88,500 people in 2011. A considerable share of R&D efforts is performed by suppliers, whose innovations often provide
the impetus for new technical solutions found in the next generation of vehicles.
Research into optimized production processes and new material also supports
competitiveness. It is therefore crucial for both OEMs and suppliers that suppliers are
rewarded appropriately over the long-term for the success of their innovations.
Skilled workers wanted...
For companies to implement their strategies, they must have access to the staff
resources they require. The search for qualified staff is usually difficult as entire
occupations tend to be in short supply, which means that multiple sectors are seeking
to attract the same few individuals. Moreover, within the automotive sector, offers
from medium-sized supplier companies compete with those of major automotive
corporations. The often discussed shortage of skilled workers, especially from the
fields of mathematics, information technology, the natural sciences and engineering,
can only be remedied collaboratively by the political and science communities. Politics
has identified the issue and taken measures. Relaxed immigration policies and newly
created job portals are intended to attract foreign specialists in order to cope with the
modest personnel resources at home in Germany. Similarly, the potential of older and
experienced staff members is being rediscovered and is now increasingly in demand.
The VDA maintains contact with employment recruiters, an important resource for
finding specialists with the appropriate qualifications.
Opportunities in the value chain
The VDA promotes communication
between manufacturers and suppliers
An efficient and fair partnership between manufacturers and suppliers is the best way
over the long term for everyone to meet the many diverse challenges we will face in
the future. The VDA is an association representing the entire automotive value chain
and as such, regards supporting its member companies in this respect as one of its
most critical responsibilities. Many important committees provide a forum for representatives of manufacturers and suppliers to sit at the same table in order to identify
common solutions. This is essential to securing the German automotive industry’s
leading competitive position over the long term.
41
Premium customers: A competitive advantage?
The German automotive industry is famous for outstanding quality and products that
retain their value. In relation to vehicles, the concept of “quality” also implies value.
Customers who buy premium products appreciate that their products are more valuable because they maintain their attested product characteristics for an extended period. German automotive manufacturers are the world leaders in the premium segment
with a market share of 80 percent. German suppliers benefit from their customers’
market position, as well as from the shared quality standards, for example they are
also among the world’s leading suppliers for the premium segment.
Again this year, German brands and models won top marks in the quality and reliability rankings. Producing premium vehicles is labor-intensive and associated with high
costs, however. Therefore even at the lowest level, suppliers have to meet the special
quality requirements. OEMs and suppliers must coordinate processes in order to meet
the high standards expected of highly optimized products. German premium vehicles
testify to the high quality throughout the entire value chain.
The success of the German automotive industry is a testament to the high
quality throughout the entire value
chain
Customers know that premium products differ from their competition in terms of
their innovations, quality, safety, comfort and design. The premium segment was and
remains the leader in innovative technology from Germany. This is true of the safety
equipment – e.g., ESP, assistance systems and heads-up displays – as well as for
efficiency gains in the drive systems, which reduce CO2 emissions.
Young business owners get involved in VDA
An initiative is ensuring that the values and experience of the supplier business
remain accessible to the future generation of decision-makers. The VDA Young Business Owners Committee was founded in 2007 by ten young business owners and acts
as a forum for the new generation to hold regular discussions on the issues faced by
the supplier sector. The twice-yearly meetings are now commonly attended by 20 to
30 young managers. The goal of the initiative is to build a network within the automotive industry and to contribute to the association’s committee work over the mid-term.
Since 2009, the young business owners have also been present at the International
Motor Show for Passenger Vehicles. The network is always open to new members.
VDA Rating Tool
The VDA Rating Tool is available to allow suppliers and manufacturers to rate their
own credit. This benchmarking tool has established itself as the standard in the
German automotive industry and also allows companies to generate an attested
credit certificate for their customers. The rating tool evaluation can also be used as
a certificate in meetings with external lenders and banks.
A low-cost, basic version of the VDA Rating Tool is available to all VDA members.
For more information, please contact the Supplier Industry and Medium-sized
Companies division.
The information platform allows young
business owners to exchange
information
World Economy
and World Trade
Jolanta Kotula – tailor, assembly operator passive entry door handles, Huf Hülsbeck & Fürst GmbH & Co.KG, Velbert
Wor ld economy an d wor ld trade
44
Market Access, an International Comparison
Trade barriers must be dismantled
The German automotive industry exports around three quarters of its domestic
production. Vehicle technology ”Made in Germany” enjoys worldwide popularity and
recognition. However, it is no easy matter to sell products from Germany in international markets. What makes market access so difficult in many countries?
In Argentina, not only do imports have to be officially registered in a bureaucratic
fashion verging on a planned economy. As a quid pro quo, the Argentinian government
demands the export of goods from this country of a value equal to that of the imported
vehicles. What this means in practice for certain premium German manufacturers is
“cars in exchange for Argentinian leather” or “cars in exchange for Argentinian wine.”
Growing protectionism in the emerging
countries gives cause for concern
In Brazil, a new law came into force in December 2011, which envisages a tax increase of 30 percentage points on imported vehicles. Depending on vehicle type, the
import tax increases from 7 to 37 percent or from 13 to 43 percent. Brazil’s tax policy
is perceptibly restricting market access for German automotive companies. This trade
barrier is unfortunately yet another example of the increasing protectionism that has
been observed for some time in many emerging countries. This development is giving
increasing cause for concern. The European Commission is called upon to take action
against such trade barriers. Europe is striving to forge a close collaboration with Brazil
and Mercosur as a whole, with the objective of a free trade agreement. Trade barriers
therefore need to be dismantled, not erected.
45
In China, companies are confronted with a restrictive export policy for selected raw
materials – notwithstanding the intervention of the World Trade Organization WTO.
China is also levying punitive customs duties on passenger cars imported from the
USA. Japan operates a restrictive public procurement procedure and makes life
difficult for manufacturers with other technical barriers.
Despite its accession to the WTO, Russia has dubious investment regulations in its
own country. In addition, shortly after its accession to the WTO, a so-called recycling
levy was introduced, which makes imports more expensive. The European Commission sees this levy as contrary to the WTO and has called on Russia to come into line
with the WTO. This will reveal how seriously Russia takes its WTO membership.
The Ukraine as well has taken measures subsequent to its WTO accession, which it
might be possible to describe as not WTO-compliant. We are talking about increased
customs duties and the adoption of the Russian recycling levy. Here, too, the principles of the World Trade Organization have to be protected.
Exports are dependent on market access
Agreement in 2012
Source: VDA
Wor ld economy an d wor ld trade
46
Trade Agreement
Free trade agreements with important growth
markets
Tariffs and non-tariff barriers to trade
often hinder access to growth markets
The German government and EU have to push even harder for free trade agreements
(FTA) with important growth markets, such as India and the ASEAN markets.
A Free Trade Agreement has already being concluded between the EU and South
Korea, which came into force on July 1, 2011. Non-tariff barriers to trade continue to
obstruct market access, such as for example regulations on the certification of automotive components, tires and labeling or test procedures for automobiles. The VDA is
playing a constructive part in improving market access conditions in South Korea (for
example with CO2 regulations, labeling and environmental innovations).
When it comes to its future negotiations, the EU must ensure that in addition to
customs tariffs, non-tariff barriers to trade are completely dismantled also and the
markets on both sides are genuinely opened up.
A Free Trade Agreement is also to be negotiated with Japan. The German and European
automotive industries were skeptical as in Japan market access is rendered difficult
primarily by non-tariff barriers to trade. From the automotive industry’s perspective,
genuine progress in this area of restrictions is the key to successful negotiations.
47
The goal of closer transatlantic integration, up to and including a comprehensive Free
Trade Agreement between the EU and the USA, remains on the agenda, even after
the election of President Obama. Industrial associations on both sides of the Atlantic
have emphasized their support for an agreement. For the automotive industry, both
the supplier and manufacturing associations on the European and American sides
have formulated common positions and forwarded them to their governments. They
contain the goal of a Free Trade Agreement with the dismantling of tariff and primarily non-tariff barriers to trade as well as numerous other common requirements and
requests. At a political level, the European Parliament has expressed its agreement in
principle. The current EU Council Presidency (Ireland) as well is putting the negotiations with the US on its priority list for the first half of 2013. Whether the USA accord
the negotiations the same priority will only become apparent during 2013. This is also
based on the outcome of the High Level Working Group, which is comprehensively
examining the usefulness of a possible agreement. Following a positive interim report
in June 2012, the final report is imminent.
A common transatlantic market offers
considerable potential for the automotive industry
A common transatlantic market offers considerable potential for the automotive
industry. Between them, the USA and the European Union account for a world market
share for light vehicles of around 40 percent.
Organizationally, the “TransAtlantic Business Dialogue” (TABD with Audi and Ford
as members) and the “European-American Business Council” have joined forces in
the “Transatlantic Business Council” (TBC) as a mouthpiece for the industry. The TBC
supports a comprehensive TBA and is advocating an early start to negotiations.
Free trade agreements with important future
markets
The EU is currently negotiating free trade agreements with India. During the current
negotiations, India has however increased its customs barriers yet again. That does not
attest to a growing readiness to open up one’s own market.
For example, increases have included a hike in the import duty from 60 percent
to initially 75 percent in 2012, and then at the beginning of 2013, even to 100 percent
for completely built passenger vehicles (CBU) with a value of more than 40,000
US dollars and an engine size greater than 3,000 cmВі (gasoline) and greater than
2,500 cmВі (diesel).
A Free Trade Agreement worthy of the name must ensure that the import duties on
both sides are completely, and not just partly, dismantled – even if with appropriate
transitional periods. The EU’s import duties are currently 10 percent for passenger
cars and up to 22 percent for commercial vehicles. India already possesses the appropriate competitiveness. In terms of passenger cars, India even enjoys a trade surplus
with Germany. The non-tariff barriers to trade are also to be dismantled.
There are 1.2 million people living in India. The Indian automotive market is one of
the largest growth markets of the future. In all probability, next year it will already
boast a greater volume than the German passenger car market; by 2020 it will double to more than 5 million units. The pent-up demand is enormous: In India, there are
currently 14 cars for every 1,000 inhabitants; at the beginning of the next decade it
will be more than 30 cars. By way of comparison, in Germany there are currently 530
passenger cars for every 1,000 inhabitants.
India would benefit from dismantling
trade barriers
Wor ld economy an d wor ld trade
48
Discussions with Mercosur on dismantling trade barriers are struggling
Negotiations with Mercosur are supported by the German automotive industry, but
unfortunately they are mired in a deep crisis. Instead of opening their markets, ever
more Mercosur members are resorting to measures restricting market access. The
VDA is looking to deeper integration by dismantling barriers to trade on both sides
and hopes that negotiations will soon regain momentum. An exacerbating factor here
is certainly that Mercosur is far less internally integrated than the EU, for example.
A similar situation also pertains with the ASEAN countries, even if the negotiations here are progressing significantly better. The regional approach (EU-ASEAN)
originally preferred by the EU and European industry of a comprehensive Free Trade
Agreement cannot be realized because of political challenges. The inclusion of Burma
desired by ASEAN is proving especially problematic for the negotiations with the EU.
Whereas the EU advocates a comprehensive approach, including human rights topics,
ASEAN would like to address market access topics only.
This being so, the EU has since come around to the idea of conducting bilateral
negotiations with selected countries. The Free Trade Agreement with Singapore is
intended to constitute a sort of reference agreement; the negotiations have already
been concluded.
Discussions have also been officially opened with Malaysia; negotiations with Vietnam
were commenced in June 2012. Negotiations are envisaged with the Philippines and
Thailand also seems to be a serious negotiating partner. The EU’s goal is subsequently
to subsume these bilateral discussions within an ASEAN-wide agreement.
The VDA welcomes the current negotiations between the EU and individual ASEAN
countries with the goal of concluding corresponding bilateral agreements in each
case. This approach is achieving significant progress compared with the previous
negotiating status. The fundamental goal of an overarching holistic EU-ASEAN trade
agreement should, however, continue to be pursued notwithstanding the halt to
negotiations decided in March 2009. Following the conclusion of bilateral agreements
between the EU and individual ASEAN states, these agreements could subsequently
flow into an overarching agreement between both regions. Japan and South Korea
already concluded such agreements with ASEAN. Putting the European automotive
industry on an equal footing in the near future would be desirable.
The German automotive industry welcomes the negotiations for a Free Trade Agreement with Malaysia and Vietnam. Corresponding negotiations with Indonesia and
Thailand should also be commenced at an early date, as these too are markets with
great future potential.
Examples of high protective customs duties in important future markets
Passenger car import duty
Brazil
35 %
Passenger car import duty
India
60 % or 75 % plus further taxes –
in total up to 100 %
Passenger car import duty
Thailand
up to 80 %
Source: VDA
49
Protectionism
The German automotive industry currently operates more than 2,000 production
sites outside Germany. Manufacturers and suppliers go where the markets are.
But they also have to respond to local conditions, meaning that many an investment
decision is influenced by local measures such as high customs duties or requirements for local value creation.
In order for production in Germany to retain its competitiveness, international markets
must offer a fair environment, a “level playing field”: that means that market access must
be possible for all participants on fair and non-discriminatory terms. Barriers to trade,
such as high customs duties and non-tariff obstacles in third-party countries (such as
for example particular technical regulations) hamper or preclude exporting from Germany and put Germany as a production location at a disadvantage. These barriers to trade
need to be dismantled further to create a fair framework and preserve and improve the
competitiveness of the German and European automotive industry.
Examples of measures posing a challenge to Germany as a
production location
Country
Russia
Ukraine
Brazil
Argentina
India
Colombia
ASEAN
Measure
Automotive policy with local content requirements
Discriminatory recycling levy
Increased customs tariffs notwithstanding WTO accession
Automotive policy with Local Content requirements
Import/export regime, import prohibitions, discrimination
High customs tariffs
Fuel policy: high compulsory ethanol percentage
High customs tariffs, non-tariff barriers, NTB
Source: VDA
Free trade is one of the fundamental principles of a market-based policy. In the longterm, all parties are better off if there are open markets. Countries and companies
wishing to export their goods must reciprocate by allowing imports and are forbidden from discriminating against them. Unilateral market access restrictions create
inefficient structures as a result of flawed investments and hamper innovation. Many
locations however see short-term advantage from a policy of sealing themselves off,
although this does not result in increased long-term prosperity.
Germany is an open market for the automotive industry: 30 percent of new passenger car registrations are accounted for by importers. To these must be added
Volkswagen’s subsidiaries – Seat and Skoda – which are treated as German marques
in VDA statistics. Three out of every five cars produced worldwide by German manufacturers are built outside Germany.
Market access on fair terms must be
possible for all participants
Wor ld economy an d wor ld trade
50
The German automotive industry’s strength is its worldwide footprint. The German
manufacturers’ production outside Germany in 2012 was 8 million units, with domestic production of 5.4 million passenger cars. The increase in foreign production also
secures and creates jobs at home.
One cannot however ignore that ever more countries are attempting to make automobile imports more difficult while, at the same time, making investment for production
in their own country as attractive as possible.
What can be done to improve market access?
The WTO must safeguard international trade
The paths to free trade lead via multilateral negotiations (WTO), bilateral free trade
agreements (FTA), enhanced cross-border collaboration between individual countries
and organizations as well as via unilateral measures (such as for example unilateral
customs duty reductions).
The World Trade Organization (WTO) is extremely important here in safeguarding
international trade. Its members, now numbering 159, have pledged themselves to
abide by the fundamental principles of world trade. Currently, however, there is an
increasing number of examples of individual members not complying with WTO rules.
These include the Ukraine and Russia. The VDA deploys good arguments to advocate
finding constructive solutions with these important trading partners.
Increasing protectionism is holding
back growth in the global economy
The trend towards import duties, minimum prices, export prohibitions and “gray area
measures” such as anti-dumping practices but other non-tariff barriers (NTB) as well,
must be halted. Increasing protectionism slows growth in the global economy. The VDA
therefore expects the German government and EU Commission, respectively, to continue – even more clearly where possible – voicing their opposition to trade restrictions.
The impact of trade barriers:
• Trade barriers reduce export opportunities.
• Trade barriers reduce the opportunities for consumption in the protected markets.
• Customs duties are an obstacle to an efficient international purchasing policy.
• Customs duties increase the product price.
• Non-tariff barriers add yet further to the price.
• Barriers (e.g., as regards customs clearance) can also cause delays, creating a
competitive disadvantage relative to domestic suppliers.
• Barriers to trade, in particular high customs duties, cause resources to be misallocated: production no longer takes place in the location with the lowest production
costs, namely where it would be efficient.
• Obstructing international trade restricts growth and reduces prosperity.
• Barriers to trade and investment prevent the international exchange of knowledge.
51
International Supply of Raw Materials and
Price Developments
Commodity prices – with the exception of crude oil prices – fell back in 2012. In an
annual comparison, the HWWI commodity price index denominated in dollars was
almost 3 percent below its 2011 level. If one excludes price movements for energy
commodities (oil and coal), prices actually fell by almost 13 percent.
The so-called industrial commodities in particular lost out. Nonferrous metals (copper,
aluminum, zinc and others) fell in price by an average of 15 percent. Iron ores and
scrap denominated in US dollars lost ground by as much as 18 percent. Exchangerate movements only slightly moderated the price decreases on a euro basis. The
supply situation for rare earth elements (REE) was also somewhat less strained. Two
effects were at play here: on the one hand, the industrial climate in Western Europe
has deteriorated across the board – and with it the demand for REEs. On the other
hand, companies have increasingly replaced.
REE applications with other, less critical raw materials. The price of oil experienced
significant fluctuations in 2012. At the beginning of the year, the conflict between Iran
and the Western countries drove prices close to the previous record highs of 2008. But
the feared shortage failed to materialize. The shortfalls as a result of the embargo on
Iraqi were more than offset by increased production by Saudi Arabia, Libya and Iraq. At
the same time, the weak economy curbed the demand for oil. The price fell significantly
in the summer months. Prices only recovered significantly towards the end of the year.
On an annual average – notwithstanding the considerable discrepancy between price
peaks and troughs – 2012 was the most expensive year for oil to date.
Commodity prices fell in 2012
The supply situation for rare earth
elements has eased
Oil price at an all time high in 2012
Wor ld economy an d wor ld trade
52
Energy Costs as a Location Issue
Effects of the energy transition
A reliable, affordable and environmentally friendly energy supply, especially of electricity and natural gas, is an essential prerequisite for Germany as a business location.
The automotive industry is particularly affected by high energy costs as it does not
receive the exemptions for energy intensive businesses.
The automotive industry has been hard
hit by high energy costs
A further cause of concern is a possible threat to security of supply. The steep rise in
fluctuating electricity generation from renewable energies together with the patchy
distribution of generating plant (wind energy) throughout Germany are imposing an
additional burden on electricity networks. Additional long-distance high and extra
high voltage power lines are required in Germany to adapt the electricity networks
to changing energy generation infrastructure. To date, however, various impediments
have meant that the building of these lines has not kept pace with generating capacity. The upshot is that maintaining the previously good security of electricity supply is
posing an increasingly great challenge.
Building the network and putting in place intelligent structures for adapting and
optimizing electricity generation and demand will only be possible with considerable
investment. The associated funding will have to be provided by the electricity sector
and thus financed by electricity consumers.
The automotive industry must continue
to expect increasing energy costs
Average electricity prices for industry
as at October 2012
15
12
9
6
3
0
1998
1999
Section 19 levy
2000
2001
Cogen. levy
2002
2003
Concession fee
2004
2005
2006
Electricity tax
2007
2008
2009
Elec. Feed-in Law/EEG
2010
2011
2012
Generation, transport, sales
Source: BDEW
53
This is behind both current and foreseeable electricity price rises. Also pushing prices
higher is the fact that electricity generation from renewable energies is more expensive than electricity generation from conventional energy sources. What this means for
the automotive industry is that rising energy costs are to be expected in the next few
years as well. At the same time, there is a growing challenge in maintaining the reliability of supply and electricity quality at the previous German level and pre-empting a
possible negative impact on production.
The price of electricity for industrial firms with a medium voltage power supply is made
up of various components. In addition to the actual net price for generation, transport and sales there is the electricity tax, Renewable Energy Sources Act (EEG) and
Combined Heat and Power Act (KWK) levy, the concession levy, the levy imposed by
Section 19 of the Electricity Grid Charges Ordinance as well as the risk liability levy
for offshore wind farms from 2013 onward. Whereas the actual net price of electricity
generation is subject to only minor price increases, and in recent years has even fallen
somewhat, significant price increases are to be observed as a result of the additional
costs imposed by government. These costs increased from 0.19 cent/kWh in 1998 to
5.35В cent/kWh in 2012. A further considerable price hike is already looming for 2013.
The biggest government cost here is the EEG levy. The EEG guarantees a feed-in of
electricity generated from renewable sources into the German electricity network at
a set remuneration rate per kilowatt hour. Because of the rapid and, in the case of a
number of technologies (e.g., photovoltaic), faster than anticipated development of
renewable energy sources, the levy is increasing significantly from 2012 to 2013 by
around 50 percent to 5.28 cent/kWh. That means that the EEG levy alone equates to
approximately 60 percent of the electricity generating cost. In addition, it is reasonable to assume that the levy will continue to increase in the years ahead, thereby
further impairing and jeopardizing Germany’s international competitiveness as a
production location. The VDA is therefore calling for a fundamental review of the
EEG and a capping of its cost at 2 cent/kWh. The automotive industry cannot sustain these additional costs relative to foreign suppliers without suffering a serious loss
of competitiveness.
As electricity generation by combined heat and power plants was no longer
competitive following the liberalization of the electricity market, the Combined Heat
and Power Act mandated statutory assistance, which, as with the EEG levy, will be
passed on to the end consumer. This levy doubled going into 2013 and now stands
at 0.126 cent/kWh. Even if the KWK levy has only a very small pro rata influence on
electricity pricing, it nonetheless contributes to an additional burden both for the
private arena and industry.
If in the past it was already possible in certain circumstances for companies to benefit
from network charge reductions, the amendment of Section 19 of the Electricity Grid
Charges Ordinance in August 2011 went so far as to create the possibility of being
exempted from network charges entirely.
The EEG levy increase significantly by
around 50 percent
Wor ld economy an d wor ld trade
54
Network charge rebates can be claimed if the company’s specific annual peak load
differs predictably and considerably from the network operator’s annual peak load.
Charges may be waived entirely if the annual electricity offtake is greater than 7,000
full load hours and exceeds an offtake quantity of 10 GWh. The network charge losses
are passed onto the remaining electricity consumers. Because of the unexpectedly
high number of exemption applications, the Section 19 levy for 2013 will probably
significantly exceed the previous year’s annual contribution of 0.151 cent/kWh and
entail an additional financial burden.
The introduction of an additional levy on the price of electricity with effect from 2013
was passed at the end of 2012. This levy is intended to help counter the hesitant pace
of investment to date, and thus the slow rate at which offshore wind farms are being
connected to the grid. The new levy, which will probably amount to 0.25 cent/kWh
in 2013, is intended to pass liability risks to the electricity consumer. The maximum
amount is currently set at 700 million euros per annum, but the Federal Government is
already forecasting a risk to be transferred of 1 billion euros, which suggests a need
for subsequent adjustment.
EU comparison of industrial electricity prices
Group IF: 70 GWh < consumption < 150 GWh, status during 1st half 2012
Cyprus
Italy
Slovakia
Czech Republic
Germany
UK
Ireland
Denmark
Portugal
Austria
Latvia
Hungary
Belgium
Spain
Poland
Slovenia
Netherlands
France
Turkey
Croatia
Estonia
Romania
Finland
Greece
Sweden
Bulgaria
Norway
0
5
10
Ct/kWh
15
20
25
total prices including taxes but excluding VAT
Source: Eurostat, VIK
55
Development of electricity and natural gas prices
In addition to electricity, the automotive industry depends on natural gas for production. Compared with the second half of 2011, industrial natural gas prices in 2012
were subject to an average Europe-wide price increase of 9.8 percent. German industrial natural gas prices were also affected by this increase and are currently, as before,
in the top third on a European comparison. This represents a further weakening of
Germany’s competitiveness as a business location especially as other regions, such as
the USA for example, are witnessing considerable falls in natural gas prices.
According to current estimates by the EU Commission, the target of reducing primary
energy consumption in the EU by 20 percent by 2020, passed by the EU Commission in
2007, will only be half achieved. The EU Commission has therefore passed a new energy
efficiency directive enshrining measures to ensure this target is achieved after all.
Following the entry into force of the guideline in December 2012, the EU member states
have until June 2014 to implement it in national law, thus making it legally binding. The
energy efficiency directive will result in yet further additional costs in Germany.
Natural gas prices for industry in the EU
Group I5: 280 GWh < consumption < 1,120 GWh, status during 1st half 2012
Sweden
Finland
Hungary
Austria
Estonia
Italy
Germany
Portugal
Latvia
Slovakia
France
Bulgaria
Spain
Czech Republic
Poland
Belgium
Netherlands
Romania
Ireland
0
1
2
Ct/kWh
3
4
total prices including taxes but excluding VAT
Source: Eurostat, VIK
Industrial natural gas prices rose by
9.8 percent in 2012
The Energy Efficiency Directive is
driving costs up in Germany
Wor ld economy an d wor ld trade
56
The European Sovereign Debt Crisis
The sovereign debt crisis is a threat
to the entire euro currency area
The reverberations of the global economic crisis have been felt for more than 4
years. To some extent these have shifted both geographically and in the form they
have taken, but the European economic system in particular still has to contend with
turbulence. What began in the autumn of 2008 with a banking and financial crisis in
the USA ballooned into a global sovereign debt crisis, with numerous financial institutions in Europe also faltering. Consequently, economic performance in numerous
countries collapsed, triggering a recession. EU GDP in the crisis year 2009 shrank by
4.3 percent. However, developments in individual countries presented a very mixed
picture. Government assistance and European solidarity succeeded in preventing a
collapse. Nonetheless, the current sovereign debt crisis continues to pose a threat to
the entire euro currency area.
The unfinished institutional structure of the euro system has had negative effects.
Fiscal policy and monetary policy are dealt with at different levels of jurisdiction.
Long-term macroeconomic imbalances and different levels of indebtedness and
current-account deficits, together with an increasing divergence between the competitiveness of individual euro countries, are calling the common currency into question.
Many EU countries’ budgets had got into difficulty.
Only if these divergences can be reduced again in the medium-term can the euro’s
long-term future be secured. This cannot just be about reducing sovereign debt –
essential though that is. Far-reaching structural reforms are required in all euro and
EU countries.
пїј
57
High sovereign indebtedness at national level is no longer just a national matter.
Emotional aspects are further inflaming the debate: if the euro fails, will Europe fail?
Even economic experts disagree about the exact causes and necessary solutions.
But one realization is becoming increasingly prevalent: macroeconomic distortions
cannot be compensated for by redistribution and bailout packages. Instead, substantial reforms to increase competitiveness in many European countries are unavoidable.
Countries’ competitiveness is too widely divergent. Whereas Germany has managed to
improve its relative position in recent years by low increases in unit labor costs, elsewhere in the EU the economic crisis has resulted in an occasionally dramatic decline
in competitiveness.
Numerous measures were taken at a European level to help countries in crisis and
prevent the eurozone from drifting apart. Bailout packages were put together with the
aim of mitigating the effects of the euro and debt crisis (EFSF, ESM). Other measures
are also intended to prevent future distortions.
This includes the “European Semester,” which entails greater powers for the EU
Commission to scrutinize national expenditure. The so-called “Six Pack” contains rules
for budgetary discipline and against macroeconomic imbalances. These include fines
for countries that run an excessively large current-account surplus over a number of
years. That means that countries demonstrating their international competitiveness
by their export success would be punished and called upon to support the weaker
countries in the EU. But the EU’s recovery cannot in any way be achieved according
to the motto “the slowest sets the pace.”
One positive outcome of this crisis is the increasingly prevalent realization of how
important industrial value creation is for a powerful economy. This change of attitude
now needs to be translated into concrete policy.
Unit labor costs
Index (2000 = 100)
110
100
90
80
2000
2001
2002
2003
2004
Italy
2005
2006
France
2007
2008
UK
2009
2010
Spain
2011
2012
Germany
Sources: Eurostat, VIK
Comprehensive reforms to increase
competitiveness in many European
countries are required
Wor ld economy an d wor ld trade
58
European Policy – Changes in Industrial Policy
European institutions consider the
German model to be exemplary
The crisis highlighted the enormous importance of a strong industrial base as the
foundation for growth and jobs. If the EU’s focus to date has been on the interests of
the financial and services sector, the realization appears to be gaining ground that a
high proportion of industrial production within overall value creation can significantly
mitigate the effects of the financial crisis. Whereas in large EU economies industry’s
share of GDP has fallen significantly, as in France (12.6 percent), Spain (16.9 percent)
or Italy (18.3 percent), in Germany latterly it was 26 percent. The German model is now
considered to be an example by European institutions as well. This success is no coincidence. Without massive investment in research and development, German industry, and
with it the automotive industry as a key industry, would not have been able to achieve
this success. But a successful industry also requires the right political framework.
Industrialization continues to be very important for innovation in research and
development and for creating competitive jobs. The European Commission has also
recognized this and would therefore like to support this sector. The EU Commission
published such a concept in autumn 2012. It articulates the objective of increasing
industry’s share of European economic output by 2020 from 15.5 percent currently to
an average of 20 percent. The European Commission wants to strengthen the industrial base and has explicitly emphasized the importance of the automotive industry. From
the German Association of the Automotive Industry’s perspective, this change is to be
welcomed, although it depends on this new direction also being put into practice.
Cars 2020 acknowledges the
importance of the automotive sector
for Europe’s prosperity
The “Cars21” process, which is of particular importance to the automotive industry,
can be included in this context. This is a forum in which representatives of the European Commission, member states and automotive industry discuss the sector’s future
and the output from which spawned the Cars 2020 action plan. This plan acknowledges not just the outstanding importance of the automotive sector for Europe’s
prosperity, but also contains concrete steps intended to ensure also that the EU continues to possess an internationally competitive automotive industry in future.
Share of gross value added by industry in Europe
not including construction industry
30
20
10
0
2000
2001
2002
2003
2004
2005
Germany
2006
Italy
2007
2008
Spain
2009
2010
2011
2012
France (values without 2012)
Source: Eurostat
59
Accordingly, investment assistance is planned in advanced technologies, to improve
market access and to support the industry in accessing world markets. The action
plan also highlights other action areas. These now need to find their way into concrete
EU policy. Currently there is no coherent implementation.
An integrated approach is required for such a coherent policy. Frequently, legislation in the various subsegments imposes unilateral burdens on industry, thereby
stymieing the strategy of strengthening the industrial location. For example, tougher
targets for reducing vehicle noise emissions result in increased weight, which in
turn increases fuel consumption, thereby increasing the effort and cost of meeting
CO2 targets. What is required is a healthy balance between all targets to reconcile
the environment and the economy.
Similarly problematical, still, is that to date, cost estimates have only been made for
individual laws. The consequences for the industry of already existing laws as well
as the impact of impending regulations are only seldom considered. It continues,
therefore, to be very important constantly to emphasize in the EU’s institutions just
how much the prosperity of Europe as a whole benefits from an innovative and
competitive industry.
As regards tough environmental legislation, the automotive industry has already
achieved a great deal. In future as well it stands by ambitious objectives. It is frequently
heard from many political players at EU level that each tightening of environmental
legislation would strengthen the industry’s global competitiveness. This calculation is
simplistic. Things should not be pushed too far: in addition to physical and technical
limits, there is also a cost threshold beyond which implementing technologies in the
market becomes impossible or at least very much more difficult. Only if an intelligent
balance can be struck between environmental objectives and cost efficiency can
competitiveness be enhanced.
The prosperity of Europe as a
whole depends on an innovative
and competitive industry
Climate and Environmental
Protection Policy
Lutz Heyser – Dipl.-Kfm. & LL.M. (oec.), Technical Director, Formel D Group, Troisdorf/Kassel
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Reducing Classic Pollutants
In recent decades, the automotive industry has achieved considerable success as
regards air quality. Despite ever increasing mileage, the so-called limited emissions
have been successfully reduced since the end of the 1980s by the systematic use of
technology and improved fuels while also cutting CO2 emissions. The success referred
to above is due in no small part to the introduction of the catalytic converter, the
reduction of refueling emissions, the particulate filter in diesel cars, SCR systems in
commercial vehicles and the ongoing optimization of engine designs. TREMOD, a
calculation model developed by the Institute for Energy and Environmental Research
(ifeu) in Heidelberg on behalf of the VDA and Federal Ministry of the Environment,
makes it possible to quantify the downward trend in pollutant emissions.
The German automotive industry’s
models are contributing to improved
air quality
The biggest phase in emissions reduction in absolute numbers occurred in the second
half of the last decade. Nevertheless, road traffic emissions will continue to fall during
the next few years as well. The models calculate a reduction in emissions from road
traffic by 2030 compared to the base year of 1990.
• 94 percent reduction in volatile hydrocarbons (HC),
• 94 percent reduction in particulates (PM),
• 92 percent reduction in carbon monoxide (CO) and
• 88 percent reduction in nitrogen oxides (NOX).
The impressive figures speak for themselves. The automotive industry has thus
achieved its mission of improving air quality.
Major success in reducing road traffic emissions:
NOx emissions
900
562
600
375
300
187
in 1,000
0
1990
1995
2000
2005
2010
2015
2020
2025
2030
Distance driven in billion kilometers
Passenger traffic
Goods transport
Sources: ifeu, DIW
1,200
750
900
562
600
375
300
187
billion km
750
billion km
1,200
in 1,000
Major success in reducing road traffic emissions:
particulate emissions
0
1990
1995
2000
2005
2010
2015
2020
2025
2030
Distance driven in billion kilometers
Passenger traffic
Goods transport
Sources: ifeu, DIW
63
CO2 progress by new cars in Germany
Since 2006, the average CO2 emissions of a newly registered car in Germany have
fallen by fully 18 percent, from 172.7 grams CO2/km to 141.1 grams CO2/km. The
German manufacturers have made a major contribution to this positive progress. They
actually managed to reduce the emissions of their new car fleet by 19 percent and at
141.4 grams CO2/km are now only marginally higher than the average figure for all
newly registered passenger cars.
In the past six years, a new car’s
average CO2 emissions fell by 18
percent
In addition to car body-related measures, this is primarily attributable to efficient engine
technologies. Pride of place is taken by the diesel engine. In 2012, German diesel
passenger cars’ average CO2missions of 141.4 grams were exactly the same as those of
German gasoline driven passenger cars - and almost 5 grams less than their competitors. The prejudice that company cars would consume especially large quantities of
fuel can also be debunked by reference to the trend of recent years, emphasizing the
pioneering technical role of this segment in reducing CO2 emissions. Between 2008
and 2012, company cars’ CO2 emissions were cut by 27 grams of CO2/km, whereas
private vehicles’ CO2 emissions fell by only 21 grams of CO2/km. In 2012, company cars’
average CO2 emissions of 143.3 grams were only 2.3 grams more than privately registered passenger cars’ emissions. When renewing their fleets, fleet managers increasingly
pay attention to the latest generation of fuel-efficient vehicle models.
Major success in reducing road traffic emissions:
HC emissions
Major success in reducing road traffic emissions:
CO emissions
1,200
750
900
562
750
5,000
600
3,750
450
2,500
300
1,250
150
375
600
300
1990
1995
2000
2005
2010
2015
2020
2025
2030
Distance driven in billion kilometers
Passenger traffic
Goods transport
Sources: ifeu, DIW
0
billion km
in 1,000
billion km
187
in 1,000
0
6,250
1990
1995
2000
2005
2010
2015
2020
2025
2030
Distance driven in billion kilometers
Passenger traffic
Goods transport
Sources: ifeu, DIW
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Fuel consumption is becoming decoupled from
engine power
It has been possible to reduce German
passenger cars’ average CO2 emissions
by 19 percent
There are reports in the media constantly of passenger cars’ increasing engine
power. This is taken as a proxy for environmental impact. The engine power of
German-branded passenger cars on the German market in the past 6 years has
indeed increased by 8 percent to 106 kW. But at the same time average CO2 emissions have been cut by 10 percent to 141.4 grams/km. Per unit of power, the decline
has therefore been even more marked. This is yet another illustration of the ever
increasing efficiency of the German manufacturers’ engines.
Ambitious objective for 2020
Last year there was a slight slackening in the pace of CO2 reduction because the “low
hanging fruit” — such as for example auto start-stop — have now been picked. The 95
gram target mandated by the EU for 2020 is therefore a major challenge for manufacturers. Achieving this goal requires alternative drive technologies — in particular
electric propulsion in its various guises — to take a higher market share.
New registrations by German manufacturers: CO2 emissions
in g/km and power in kW
200
150
100
50
2006
2007
2008
2009
2010
2011
Power
2012
CO2 emissions
Source: Federal Motor Transport Authority, German Association of the Automotive Industry (VDA)
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CO2 Regulations
Official CO2 limits have been in force since 2012. The light commercial vehicle
segment (so-called vans, up to 3.5 metric tons) will be regulated with effect from
2014. The debate on CO2 regulation for the heavy commercial vehicles’ segment
(HGVs and buses) is in full swing.
CO2 regulation of passenger vehicles
The CO2 ordinances for passenger vehicles follow a weight-based approach. Noncompliance with the limits incurs penalties related to the amount by which the target is
missed. With the weight-based approach, heavy vehicles have to cut CO2 emissions
more than light ones. The goal is to use engine and powertrain measures to reduce
the average European value to 130 g/km CO2 by 2015 – that equates to fuel consumption of 5.0 liters of diesel or 5.6 liters of gasoline per 100 kilometers. The limit does not
need to be achieved by the entire fleet in the first year, but by an increasing percentage of vehicles (“phasing in”) in order to take account of typical product life cycles. In
2012, 65 percent of the new vehicle fleet is being included, 75 percent in 2013,
80 percent in 2014 and finally 100 percent in 2015.
Eco-innovations – namely, all the technological initiatives that are not measurable in
the previous CO2 inspection procedure — will be offset against the fleet average up
to a maximum of 7 g CO2. Super-Credits – namely the multiple offsetting of vehicles
emitting less than 50 g/km CO2 — will be offset 3.5-fold in 2012 and 2013, 2.5-fold in
2014, 1.5-fold in 2015 and at par from 2016 onward. From 2012 to the end of 2018,
5 euros will be payable for the first gram of CO2 that exceeds the limit, 15 euros for
the second gram, 25 for the third and from the fourth gram and above, 95 euros. With
effect from 2019, there will be a flat rate fine of 95 euros for each gram above the
limit. There are exemption rules for the very smallest manufacturers producing fewer
than 10,000 vehicles and for niche manufacturers (between 10,000 and 300,000 units).
CO2 regulations in Europe
CO2 regulations in Europe
Since 2012
Cars
In draft:
Heavy
commercial vehicles
From 2014
Light
commercial vehicles
Source: VDA
The average European fleet value is to
be reduced to 130 g/km CO2 by 2015
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66
How do the regulations work?
For each vehicle with a European
authorization, the permitted CO2 value
is calculated based on the relevant
vehicle weight
The European ceiling of 130 g/km CO2 does not apply for individual vehicle models
but refers to the European fleet average. The individual manufacturers are not
therefore subject to universal, absolute values but company-specific CO2 targets.
The permitted CO2 value based on the relevant vehicle weight is calculated for each
vehicle with a European authorization. Based on these values, manufacturers can
then determine their fleets’ average fuel consumption. This ensures that manufacturers of larger passenger vehicles or commercial vehicles, who obviously generate
higher CO2 emissions in absolute terms, are not disadvantaged relative to producers
of smaller vehicles.
Nevertheless, the demands on manufacturers of larger passenger vehicles in terms of
results is greater than those on their competitors. That is because while the regulations governing larger passenger vehicles allow them a higher fuel consumption
as a basic principle, at the same time they require superior reduction performance
(assisted by the so-called “slope 60” burden sharing curve). As such, the German
premium manufacturers would have to reduce the CO2 emissions of their respective
fleets by around one quarter, whereas Italian or French competitors are only expected
to achieve a reduction of approximately 13 percent until 2015.
Long-term target: 95 g/km CO2 by 2020
Whereas the EU’s current regulations envisage a reduction of 30 grams between 2006
and 2015 to 130 g/km CO2 the 2020 target of 95 g/km CO2 demands even more in an
even shorter time frame: namely 35 grams in only 5 years!
That is a more ambitious reduction than is currently envisaged in all other main
markets.
• USA: 121 grams
• Japan: 105 grams
• China: 117 grams
More reductions in long-term goal achieved rapidly
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
30 gram or 19 % reduction
in 9 years
1. Regulation
160 g/km
2. Regulation
130 g/km
35 gram or 27 % reduction
in 5 years
130 g/km
95 g/km
Source: VDA
67
What is more, the reduction is significantly in excess of the expected reduction in the
conventional drive arena, which, according to the ICCT (International Council on Clean
Transportation) is approximately 2 to 3 percent. However, a 27 percent reduction in
5 years means a required reduction of 5.4 percent based on a linear distribution.
Consequently, whether such a goal can be achieved in Europe depends critically on
how exactly the regulations are framed and on the details. What is clear is that the
reduction in fuel consumption has gained considerable momentum in recent years.
The crux for the industry, however, is that past progress cannot simply be extrapolated
in a straight line. Ever more elaborate technologies are required the closer one gets
to physical limits. The measures available become increasingly expensive and yield
proportionately smaller savings. This trend was clearly apparent in 2012: In 2012,
manufacturers were unable to replicate 2011’s remarkable 3.8 percent reduction in
new car fuel consumption.
Despite that, the motor industry is striving to achieve the overall fleet target of
95 g/km CO2. Attainability, however, depends critically on how the market for electrified and especially efficient vehicles develops from here. Sensible incentives can be
of considerable assistance here.
The closer one gets to physical limits,
the more elaborate the technologies
required
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68
Ensuring incentives for innovation:
Super-Credits and eco-innovations
Super-Credits would promote innovations with a neutral budgetary impact
A limit of 95 g/km CO2 means fuel consumption of 3.6 liters of diesel or 4.1 liters of
gasoline per 100 km. To achieve this objective, all manufacturers have to electrify all or
part of their vehicles’ drivetrain. But developing and making such vehicles is expensive. That is why incentives are important to ensure that the market for such vehicles
ramps up quickly. The method of choice was “Super-Credits,” the effect of which is to
award multiple offsets to especially fuel-efficient vehicles and reward them for their
extraordinary environmental footprint. Bonus points such as this would be a genuine
incentive for manufacturers to place greater emphasis on alternative drive technologies. Super-Credits would therefore promote innovation – with a neutral budgetary
impact, what’s more. Accordingly, other countries such as the USA and China are
making extensive use of this tool.
Eco-innovations as a spur to innovation
Prominent among the eco-innovations
are particularly, e. g., low power-consuming lighting systems and devices for
converting waste heat into electrical
energy
So-called eco-innovations could have a similar effect to Super-Credits. With the engine’s
efficiency reserves increasingly depleted, the vehicle needs to be seen all the more as a
holistic system. What we are talking about are technologies that are not evident when
measuring fuel consumption on the test stand: for example, solar roofs for cooling the
passenger compartment or converting waste heat into electrical energy. Such systems
could markedly reduce energy consumption in the car, and thus reduce fuel consumption. In the past, however, the way the EU Commission has handled the recognition of
the impact eco-innovations have had on CO2 performance has been too restrictive and
bureaucratic, with the result that these fuel economy modules have not yet achieved
breakthrough. Here, too, the rule applies: Clever regulation could promote technologies
and innovation without the need for government handouts.
The automotive industry in Europe is faced with enormous economic challenges. At
the same time it finds itself in a technological paradigm shift. Nobody can accurately
predict which drive technologies will establish themselves in the market in the longterm. Companies therefore have to pursue a number of avenues. Which technology
will break through? Battery technology, the hydrogen-powered fuel cell, the plug-in
hybrid or the natural-gas vehicle? These questions are currently unresolved. This is
why the time is not yet ripe for thinking now about targets and regulations for the
period after 2020. Such decisions would be far too premature. As long as the potential
market penetration of alternative drive systems remains unclear, serious forecasts
beyond 2020 are not possible. From the present-day perspective, it is not yet sure
whether the current limits regime continues to make any sense at all, or whether a
completely different system of regulation might be required.
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CO2 regulation for light commercial vehicles (N1)
The CO2 regulations for light commercial vehicles follow the same basic principles as
the Passenger Vehicle Ordinance. Here again we are talking about weight-based CO2
regulations with the goal of achieving a fleet limit of 175 g/km CO2 from 2014 onward.
In 2014, 70 percent of the new vehicle fleet will being included, 75 percent in 2015, 80
percent in 2016 and finally 100 percent in 2017. Eco-innovations will be offset up to a
maximum of 7 g/km CO2 in the same way as for passenger vehicles.
Super-Credits for vehicles emitting less than 50 g/km CO2 will be offset 3.5-fold
in 2014 and 2015, 2.5-fold in 2016, 1.5-fold in 2017 and at par from 2018 onward.
Depending on the extent to which the target is missed, penalty payments of between
5 and 95 euros will be levied. There are exemption rules for the very smallest manufacturers producing fewer than 22,000 vehicles. The target is for 100 percent of the N1
fleet to achieve the target value of 175 g/km by 2017. 147 g/km are to be achieved only
3 years later. That is a CO2 reduction of 28 g/km in only 3 years!
The latest study by the Institute of Automotive Engineering (ika) at RWTH Aachen,
published in 2013, demonstrates that even with a 4 percent market share for electric
propulsion, the target of 147 g/km CO2 is only achievable from a technical perspective
with the most far-advanced technology package. This results in costs of around 6,500
euros per vehicle.
From 2014 onward, light commercial
vehicles are to achieve a fleet limit of
175 g/km CO2
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But the light commercial vehicle segment would struggle to cope with costs of that
magnitude. In every case, disproportionate regulations resulting in disproportionately
high costs serve neither the economy nor the environment, because many customers,
especially the price-sensitive ones, will hold off purchasing new vehicles for as long
as possible and make do instead with their old vehicle stock. However, such a delay
in renewing the fleet would be counter-productive for environment policy as superior
technologies would then only find their way into the market at a later date.
Overwhelmingly, the light commercial vehicle segment differs fundamentally from the
passenger vehicle sector. In practice, light commercial vehicles are required almost
exclusively for a specific profile of use (parcel services, transportation for trade purposes, etc.). Procurement and running costs and reliability are the critical parameters
driving product selection. Already, no manufacturer can afford to offer vehicles on the
market that are not as economic as possible in terms of fuel consumption.
At one and the same time, the dominant business calculation in the commercial vehicle
sector shapes and limits the advent of technical innovation. Innovations will prevail
in the market once the higher purchase costs make economic sense in relation to
the lower running costs. In practice this depends largely on the specific purpose for
which the vehicle is being used. Whereas specific technologies, such as hybridization
for example, achieve a quicker payback for certain profiles of use, because significant
reductions in fuel consumption are possible as a result of the additional electric propulsion, the efficiency gain is smaller for other types of use (for example, long-haul only).
71
CO2 for heavy commercial vehicles
In addition to CO2 regulations for passenger vehicles and light commercial vehicles, the European Commission is planning to bring forward proposals for regulating
heavy goods vehicles as well, even before the end of the current legislative period.
Here, however, the starting position is fundamentally different. Unlike in the case for
passenger vehicles and light commercial vehicles, heavy goods vehicles’ CO2 emissions have not previously been captured. This is because the truck market, from longhaul trucks to the building site tipper, is significantly more fragmented. As a result,
the size, weight, application, performance and conditions of use of trucks are totally
different and cannot be reduced to a common denominator. A building site tipper’s
driving and load profile are fundamentally different from that of a long-haul truck.
Against this backdrop, only truck engines are currently type-tested for emissions. But
inspecting the engine alone does not allow any realistic inferences to be drawn about
the CO2 emissions of the vehicle as a whole. The influence of other factors on CO2
emissions, such as aerodynamics or rolling resistance, is far too great.
CO2 emissions by heavy commercial
vehicles have not previously been
captured
It follows that the first step is to develop a practicable approach as to how heavy
commercial vehicles’ CO2 can be determined at all. The focus here is on a CO2 simulation model, realistically modeling the actual CO2 values. Only once the simulated
actual values are available and they have been confirmed in practice, should further
political initiatives be considered.
Market pressure is driving down CO2 emissions
Companies are under considerable market-driven pressure to push ahead with
reducing truck fuel consumption because, given the high annual mileage, fuel costs
represent far and away the biggest single item in the road haulage industry’s cost
structure with a share of around 30 percent. Transport companies therefore have a
massive vested interest in trucks that are as fuel-efficient as possible. Regulation
would therefore be superfluous. That is also borne out by the progress made to date
in reducing fuel consumption: for example, nowadays a 40 metric ton truck on longhaul trips consumes on average only 32 liters per 100 kilometers. This means that one
metric ton of payload costs only 1 liter per 100 km (235.21 mpg). This progress must
continue while also remaining affordable.
A 40 metric ton truck consumes only
32 liters of fuel per 100 kilometers on a
long-haul trip
This also begs the question of responsibility for CO2 emissions, as heavy commercial vehicles are produced in a multistage process. In the case of heavy commercial
vehicles, there are frequently only customized products: the concrete mixer is fundamentally different from trucks for long-haul transport. The chassis manufacturer is
therefore not remotely able to take responsibility for and influence the CO2 emissions
of the complete vehicle. But who then is responsible?
At the end of the day, there is no need for regulation on limits driven by climate protection considerations. Instead, the political focus should be on alternative optimization
solutions: Certified and official information on fuel consumption and CO2 emissions
must create more competition in the market. Driven by the market, the most efficient
vehicles will prevail.
Based on the primacy of “liberalization instead of regulation,” the way should also be
opened to new, innovative approaches to vehicle dimensions (length, height, width)
because unless the statutory dimensions are amended, aerodynamically optimized
vehicles will struggle to assert themselves in the market because of the loss of cargo
space that would otherwise ensue. Ultimately, because of the importance of the truck
within the transport sector, climate protection policy can only succeed with, and not in
opposition to, the commercial vehicle. Instead of rigid limits, the dynamics of the market
must be harnessed to use competition between manufacturers as the central driver of
CO2 innovation.
Official data on fuel consumption and
CO2 emissions must be used to create
more competition
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Tire Classification (Tire Labeling)
Tire labeling has been required since
November 2012 for vehicle class M
and N tires
With effect from November 2012, it was made compulsory to classify and label vehicle
tires or vehicle classes M (passenger vehicles) and N (goods vehicles) similar to the
labeling on electrical appliances with the intention of providing consumers with information on specific tire characteristics and enabling them to make a direct comparison
between different models.
This labeling describes the rolling resistance (fuel pump symbol), wet-weather adhesion (rain symbol) and tire road noise (sound wave symbol) and is divided into classes
A to G. The label is intended to help the customer when choosing a tire. It informs
consumers about environmental and safety characteristics. It doesn’t however say
anything about other important performance features such as braking performance
in dry conditions, aquaplaning behavior, vehicle stability, cornering forces, wear and
suitability for winter driving.
Label to be revised by 2014
Experts define 20 performance characteristics in order to provide the customer with
more specific and comprehensive information. The EU Commission wants to revamp
the label and its criteria by 2014. For example, a high classification for rolling resistance is at the expense of braking behavior in wet conditions. That was not previously
evident from the label. A step up in rolling resistance from A to B equates to increased fuel consumption of 0.1 liters/100 km, a step up in wet-weather adhesion from
A to B corresponds to a longer braking distance of between three and six meters.
Admittedly, tire technology has come on in leaps and bounds in recent years. Tire
performance requirements, especially as a result of different road conditions caused
by the weather, are improving all the time.
Tire labeling
European tire labeling regulation
A
B
C
D
F
G
H
B
B
72 dB
1222/2009 – c1
Source: European Commission
73
The Federal Ministry of Transport, Building and Urban Development will also take
account of winter road conditions in an ordinance addressing the typical conditions
resulting in a higher degree of risk as a result of packed snow, slush, frost or black ice.
Pending a similarly comprehensive European regulation, tire characteristics such as
minimum profile depth and labeling for the customer and supervisory authorities should
be taken into account as criteria for the suitability for winter use of tires for multitrack
motor vehicles for the carriage of passengers and freight (category M and N).
In 2010, the Bundesrat also requested the Federal Government to check the minimum
profile depth for winter tires in the context of fleshing out the compulsory fitting of
winter tires. There are proposals for a minimum profile depth of four millimeters for
winter tires. This is to be examined by a research project. Additional topics included
in the research projects are tire age, winter tires on the steering axle of commercial
vehicles and the compulsory fitting of snow chains for commercial vehicles. Once this
research work is completed at the end of 2014, there will be a decision as to whether
further changes are required to the compulsory fitting of winter tires.
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Passenger vehicle labeling
Color scale informs customers of new
vehicles’ CO2 balance
According to EU Directive 1999/94/EC, consumers are to be provided with standardized information on fuel consumption and CO2 emissions. Exactly how this information is to be presented will however be left to individual states. Manufacturers
and dealers have already been required since 2004 to provide information about
fuel consumption and CO2 emissions for new passenger vehicles under the passenger vehicle energy consumption labeling ordinance (Pkw-EnVKV). This labeling has
however been significantly improved since the end of December 2011. There is now
no longer an impenetrable fact sheet but a clear color-coded scale informing the
customer directly at the moment of purchase about a new vehicle’s CO2 performance.1
The passenger vehicle label uses a scale incorporating colors and letters to show how
energy efficient a vehicle is compared with other models. Vehicles exhibiting significantly better CO2 values and the average are divided into green categories. Average
vehicles are classified amber and vehicles that are worse than the average are labeled
in red. If in future there is an improvement in the CO2 values of passenger vehicles
offered on the market, the system will be tightened up.
The color scale is supplemented by information about average fuel costs and the
annual amount of the CO2-based motor vehicle tax, so that the consumer can include
these vehicle running costs in his or her purchase decision. Power consumption is also
factored in, given the increasing number of electric vehicles. The customer immediately
sees from the color scale whether the vehicle is economical or not in its “weight class”
because a compact car is compared with a compact car and a family van with a family
van. Such a scoring system also spurs the motor manufacturers on to fresh successes:
Whether a compact car or family car — everyone needs to make an effort. The planned
label therefore presents crucial benefits: it fosters competition between providers to
develop ever more fuel-efficient models and it raises purchasers’ awareness of fuel
efficiency. Both will result in a significant reduction in CO2 emissions.
For two-thirds of customers, the label is
important when making a purchasing
decision
The fact that the label is becoming increasingly important is borne out by a representative survey by the Deutsche Energie-Agentur GmbH (dena) among automobile
customers and dealers. The label is an important or even very important factor for
almost two thirds (63 percent) in the purchase decision. You will find the results of the
survey and further information about the label at www.pkw-label.de.
Anyone – be they a private customer, business customer or dealer – can find out
about the new labeling on the information forum www.pkw-label.de. Moreover, an
online tool helps private and business car purchasers identify the most efficient
new vehicle in the relevant vehicle segment (compact cars, medium class, etc.).
Dena also offers a free phone energy hotline on tel. 08000 736 734.
Passenger Car Energy Consumption Labeling Regulation of May 28, 2004 (BGBI. I p.1037), last amended by Article 1 of the
1
Regulation of August 22, 2011(BGBI. I p.1756 (2095))
75
Design of the label
Information regarding fuel consumption, CO2 emissions
and current consumption in the meaning of Pkw-EnVKV
(Car Energy Consumption Identification Ordinance)
Brand:
Fuel:
Model:
Other energy carriers:
Capacity:
Weight of vehicle:
Fuel consumption
combined:
/100 km
inner city:
/100 km
outside:
/100 km
CO2 emissions
Current consumption
combined:
g/km
combined:
kWh/100 km
The values indicated were determined in accordance with specified measurement procedures (Art. 2, Nos. 5, 6, 6a Pkw-EnVKV, in the version
currently in force). CO2 emissions incurred by the production and provision of the fuel or other energy carriers are not taken into account in
the determination of the CO2 emissions in accordance with Directive 1999/94/EC. The data does not relate to an individual vehicle and does
not form a constituent part of the bid, but serves solely for comparison purposes between the different types of vehicles.
Note with regard to Directive 1998/94/EC:
The fuel consumption and CO2 emissions of a vehicle depend not only on the efficient utilization of the fuel by the vehicle, but are also
influenced by driving behavior and other non-technical factors. CO2 is the greenhouse gas mainly responsible for global warming. A
guideline to the fuel consumption and CO2 emissions of all private car models offered for sale in Germany can be obtained free of charge
at any point of sale in Germany at which new models of private cars are on display or offered for sale.
CO2 efficiency
On the basis of the CO2 emissions measured and determined
by taking the weight of the vehicle into account
A+
A
B
B
C
D
E
F
G
Annual tax for this vehicle
Energy costs with a run performance of 20,000 km:
Fuel costs (_______) at a fuel price of ____ euro/payment unit
Current costs at a current price of ____ euro/payment unit
Euro
Euro
Euro
Prepared on:
Source: VDA
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
76
Technical CO2 Reductions Affecting Heavy
Commercial Vehicles
FAT is determining ways of reducing heavy commercial vehicles’ fuel
consumption
A part of the fuel is used to overcome
driving resistance
Fuel costs, which in the case of long-haul commercial vehicles currently account for
approximately 30 percent of running costs, are constantly increasing. In addition, the
EU Commission intends to introduce a CO2 certification for heavy commercial vehicles
as well. To that end, work has been ongoing for a number of years on an appropriate
procedure for making realistic calculations of heavy commercial vehicles’ CO2 emissions. Against this backdrop, the Automotive Engineering Research Association e. V.
(FAT) has initiated projects to determine the potential of vehicle initiatives in achieving
a lasting reduction in fuel consumption.
In the case of laden 40 metric ton truck trailers driving on a level road surface, approximately 40 percent of the fuel is used to overcome the driving resistance. Rolling
resistance and air resistance are the dominant driving resistance forces on long-haul
journeys. When investigating the aerodynamic characteristics of semi-trailers (figure) it
emerged that the air resistance can be significantly reduced if the gaps on the vehicle
sides are covered. That involves attaching approximately 0.5 meter-long flaps, so-called
boat tails. In the case of drawbar trailer combinations, an aerodynamically shaped
fairing on the rear of the truck body appreciably reduces the trailer’s air resistance as
the air flows more continuously across the gap between the truck and the trailer.
The generic vehicle models created for these studies are also attracting increasing
interest at EU level in developing the CO2 certification procedure for heavy commercial vehicles. A newly developed measuring methodology made it possible for the
first time to measure the rolling resistance of commercial vehicle tires on real road
surfaces. In the process, the influence of parameters relevant to the tires’ rolling
resistance, such as wheel load, tire inflation pressure and the roughness of the road
surface was calculated. The rolling resistance of a truck trailer is also influenced — in
addition to the tire — by other truck trailer and axis parameters. In order to be able to
quantify the various influences on the rolling resistance of the vehicle as a whole, a
simulation model was built that systematically looks at all the primary and secondary
effects of the variables influencing fuel consumption.
Other ongoing research projects will identify additional potential for the total “truck
trailer” system in order to make future road freight transport even more energy efficient.
Aerodynamic simulation using the generic semi-trailer model
0
-7
Ux (m/s)
10
20
22
Source: FluiDyna GmbH
77
Coolants
As far back as the beginning of the 1990s, the automotive industry began to look at
possible alternatives to the established coolant with a view to reducing environmental pollution. At that time, the ozone layer-depleting coolant R12 was superseded by
the more environmentally friendly R134a. But subsequently, this coolant as well was
challenged. As a result, the EU enacted Directive 2006/40/EC to regulate vehicle airconditioning systems. This introduced a limit on the climate effect (the impact the gas
has on the greenhouse effect once it has escaped into the atmosphere), defined in
terms of the GWP (Global Warming Potential). The GWP is an index stated relative to
its effect on CO2 as a greenhouse gas over a one hundred year time frame.
Among other things, the EU Directive phases in a ban on the use of coolants with
a GWP greater than 150 for newly registered vehicles. With effect from January 1,
2011, new vehicle models will no longer be authorized that have a coolant with a
GWP greenhouse gas potential greater than 150; the same applies to all new vehicles
with effect from January 1, 2017. The R134a coolant in use today has a GWP of 1,430,
thereby significantly exceeding the limit.
The coolant R134a in use today
significantly exceeds the limit
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
78
CO2 is an alternative
The initial focus in terms of a replacement for the coolant R134a was on two different
substances: on the one hand, CO2 (R744) was long held to be a particularly advantageous coolant as a logical step forward. The coolant’s peculiar characteristics, such as
high system pressures, would, however, have necessitated a complete redevelopment
of all the cooling circuit components. The pre-development phase was concluded for a
number of applications. However, a stable and robust readiness for series production
and the very demanding safety requirements listed in the US SNAP rule since June 6,
2012 would have required yet further cost and time-intensive development steps.
R1234yf as another possibility
R1234yf is largely compatible with
existing conventional air-conditioning
system technology
On the other hand, R1234yf appeared to be a suitable solution. As with the previously
used coolant R134a, R1234yf can also be used in the car at the previous typical pressure level of around 30 bar. As such, R1234yf is largely compatible with the existing
technology in conventional air-conditioning systems. The components tried and tested
over many years and available the world over to a high quality standard can remain
in use. Motor manufacturers worldwide therefore opted for R1234yf. Over the past
few years it has undergone detailed investigation. Many vehicle manufacturers and
suppliers from Asia, Europe and the USA, and independent institutes as well, conducted extensive tests and studies in numerous internationally renowned laboratories,
including vehicle tests under realistic conditions. The outcome: R1234yf is safe to
use. It came as a complete surprise to everyone that these results were challenged by
Daimler AG’s “Real-life Test,” published at the end of September 2012. Further tests
are currently underway to obtain a sound overall picture and to be able to assess
possible options.
Climate effect and damage caused to the ozone layer by coolants
Climate potential
(GWP)
Ozone Depletion Potential
(ODP)
R 12
10,890
Yes
R134a
1,430
No
R1234yf
4
No
R744 ( CO2 )
1
No
Coolants
Source: VDA
79
Biofuels and Sustainability
The German automotive industry’s fuel multi-track strategy envisages the long-term
replacement of fossil fuels to reduce the dependence on crude oil and to cut CO2
emissions. To this end, fuel will be replaced in part by biofuels. This will increase independence from oil imports. The addition of biofuel will also immediately reduce CO2
emissions throughout the entire vehicle fleet.
From the outset, the discussion has been conducted around the sustainability of
biofuels. As a result, biofuels have been subject to stringent guidelines as a result of
European and German legislation. There are no comparable regulations, whether for
foodstuffs, for input materials for cosmetics or for raw materials for recycling. From
the VDA’s perspective, however, these standards should be applied across the board.
Biofuels are already required to demonstrate a minimum 35 percent reduction in
greenhouse gas emissions compared with fossil fuels and to have been cultivated on
land that ensures the protection of natural forms of life, as well as sustainable agricultural production. Moreover, biofuels produced in new plant facilities are supposed to
generate a minimum of 60 percent lower greenhouse gas emissions than comparable
oil products.
Biofuels are subject to stringent
guidelines
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
80
In Germany, no foodstuffs are
processed into biofuels
The European Commission has brought forward an additional proposed amendment,
which also burdens biofuels with quantifying indirect land-use changes. Biofuels
produced from fruit potentially intended for human consumption are to be limited to
no more than 5 percent of fuel consumption in the transport sector with effect from
2020. This demand takes no account of the fact that in Germany today, no foodstuffs
are processed into biofuels but so-called industrial beet or feed grain not suitable
for human consumption. Second-generation biofuels, on the other hand, made from
waste materials such as old wood, straw or garbage, are granted a credit.
Moreover, the way in which the so-called iLUC values (indirect land use change)
are accounted for is also extremely dubious. The iLUC values refer to the possible
greenhouse gas emissions generated if foodstuffs, cosmetics input materials or raw
materials are cultivated on a new field not previously in production. The potential
greenhouse gas emissions as a result of this change of use are attributed to the biofuels cultivated on the original field. This results in all cases in an unfair and frequently
unfounded inclusion of biofuel greenhouse gas emissions.
The German automotive industry advocates the use of next-generation biofuels
because this enables the reasons constantly being put forward for a discussion on
“tank versus plate” to be dismissed. It remains to be seen whether these wishes are
fulfilled because the figures are already quite clear. No foodstuffs are used in Germany to produce biofuels. Globally as well, only a small percentage of the grain harvest
goes to produce biofuels. Only a single digit percentage of arable land worldwide
is given over to the cultivation of energy crops in any event. Despite that the “tank
versus plate” discussion rumbles on.
Most customers are still opting for the
more expensive E5 legacy blend
Ethanol cuts road traffic CO2 emissions
and reduces the dependency on oil
Nowadays, biodiesel and ethanol in particular are used. In Germany, 7 percent biodiesel (B7) is added to conventional diesel fuel at the pumps as standard. All the
vehicles in the European vehicle fleet are suitable for these blending rates. B7 has
successfully established itself in the market. A similar situation applies to the addition
of ethanol to gasoline. Here as well, more than 90 percent of all vehicles in the fleet,
including approximately 99 percent of all German-branded vehicles and all new vehicles without exception, are suitable for a 10 percent ethanol blend. This is why the vast
majority of vehicles could run on E10 but in practice most customers at the pumps still
opt for the more expensive E5 legacy blend.
The VDA regrets this customer reticence because ethanol, guaranteed in Germany by
binding regulations, demonstrably reduces CO2 road traffic emissions and is capable
of reducing the dependence on oil, at least in some small part. The renewable energy
directive demands that renewable energies account for a 10 percent share of the
transport sector by 2020. Five percent is to be capable of being covered by so-called
first-generation biofuels, namely by biodiesel and ethanol available as of now. Achieving this 10 percent quota requires the widespread use of E10.
81
The German automotive industry stands by its activities to educate people about E10
and remains committed to the introduction of E10. The VDA expects support from the
participating groups, not least also from consumer associations and politicians.
Irrespective of the E10 debate, what is needed is to continue developing new biofuels that do not interfere with the food chain. In addition to new ethanol production
processes — such as straw — entirely new approaches are being developed, such
as biodiesel production from algae, for example. These concepts are very promising
but first have to be developed to the point of series production. The VDA is therefore
calling for a stable conceptual framework from the Federal Government, which will
give these new fuels a fair chance in the biofuel market.
New biofuels are under development
Biomethane and natural gas mobility are
becoming increasingly important
The VDA is paying particular attention to the previously oft-neglected gaseous
biofuels: from an environmental perspective, biomethane is the best biofuel currently
available in large quantities in Germany. It boasts the highest spatial efficiency of all
current biofuels and, according to a dena study, is capable of reducing CO2 emissions
by up to 97 percent compared with a conventional gasoline-powered vehicle. Even
without adding biomethane, natural gas is capable of reducing CO2 emissions by
around one quarter compared with a gasoline-powered vehicle.
Biomethane can reduce CO2 emissions
compared with a gasoline powered
vehicle by as much as 97 percent
Greenhouse gas emissions WTW
in gCO2 aq/km
200
164
-24 %
156
-39 %
175
-97 %
141
150
124
111
100
100
95
75
50
8
5
5
0
el
es )
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ind
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w
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o
(
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E
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%
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s
a
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r
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na
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lyc
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Fossil fuels
Biofuels
Electric drive
Source: dena
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
82
It is chemically identical with natural gas so that it can be 100 percent blended with
existing natural gas. The first step is to achieve a 20 percent admixture of biomethane
to natural gas at the fuel pumps.
This is why the VDA is supporting dena’s natural gas initiative with the objective of
boosting the role of natural gas and biomethane as a component of the fuel mix in the
German market.
The German automotive industry offers
a wide range of natural gas vehicles
An increased use of biomethane presupposes increasing the number of CNG vehicles
within the fleet because only these vehicles are capable of running on biomethane.
The current vehicle fleet in Germany of approximately 90,000 vehicles is still too small.
To achieve this objective, the natural gas mobility initiative, which, in addition to representatives of the automotive industry also includes the oil industry, ADAC, the biofuel
industry and the world of politics, has decided on the following action points:
• expanding the filling station infrastructure
• increasing the percentage of biomethane in the blend
• increased communication and education
• prolonging the tax breaks for natural gas
• expanding the offering of natural gas vehicles
• stepping up the marketing and sales of natural gas vehicles
Objective of the natural gas mobility initiative
1.4 million natural gas vehicles in Germany by 2020
Number in millions of vehicles
1.5
0.03
0.25
1.2
1.1
0.9
0.85
0.66
0.6
0.51
0.39
0.3
0.09
0.08
0.11
2009
2010
2011
0.14
0.18
0.24
0.31
0
2012
2013
Number of passenger cars
2014
2015
2016
Number of light commercial vehicles
2017
2018
2019
2020
Number of heavy commercial vehicles and buses
Source: dena
83
The German automotive industry has accepted these tasks and, from the very smallest
car via the family van to the upper mid-class, offers a wide and attractive offering of
natural gas vehicles.
Of paramount importance would be a political signal that the natural gas tax breaks
will not be rescinded so as to ensure long-term planning certainty for “natural gas
mobility” manufacturers and users. Natural gas vehicles must remain not just environmentally, but also economically attractive.
Purchase criteria for alternative drive systems
User groups
Purchase criteria for
alternative drive systems
Personal
Commercial
Public
Wide selection of vehicles and
good marketing
++
+
-
Lower extra
purchase costs
++
+
++
Low maintenance costs
(especially fuel costs)
-
++
+
Good distribution of “gas“
stations and long vehicle range
+
+
-
Source: dena
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
84
AdBlue/SCR
Depending on vehicle weight and engine power, two systems have a proven track
record of reducing nitrogen oxides in diesel engines: the NOX storage catalytic
converter (NSC) and selective catalytic reduction, SCR for short. The NSC storage
catalytic converter, coated with alkaline or earth alkaline oxides/carbonates forms
an irreversible chemical bond with NO2. SCR technology avails itself of the qualities
of AdBlueВ®. A safe, environmentally friendly and high-quality aqueous urea solution,
which reacts with nitrogen oxides in the hot exhaust gas and converts them into nitrogen and water in an environmentally friendly way.
Ad BlueВ® breaks down nitrogen oxide
in the catalytic converter into nitrogen
and water.
SCR technology is being used across the board in order to meet the Euro VI standard
for heavy commercial vehicles, which has been mandatory for new types since the
beginning of the year. AdBlue®’s time has now also come for diesel-driven passenger
cars. A large proportion of diesel passenger cars that satisfy the Euro 6 emission
standard from 2014 onward will feature an SCR system. In relation to sustainability,
the automotive industry has already committed itself to this solution for individual
mobility and will continue to do so. Because one in every two new cars registered in
Western Europe is a diesel vehicle, the number of new cars with SCR technology will
increase accordingly.
With its tried-and-tested technologies for treating exhaust gases and using the
proven AdBlueВ® fluid, the automotive industry is well prepared for the demands that
the looming, stringent EU emissions reduction laws will entail for individual transport.
SCR technology also lends itself to complying with the tough statutory requirements.
The cleanest diesel vehicles of all time thus achieve the same level of emissions of
gasoline-powered cars.
пїј
Diesel vehicles achieve the same level
of emissions as gasoline powered cars
Development of exhaust-gas stages for diesel passenger cars
100
100
40
13
20
5
0
100
3
2
2
73
-98 %
60
40
30
20
19
9
0
100
0.025
2
100
80
PM [%]
EU4
-98 %
60
2
2
100
80
Particulate emissions [g/km]
CO [%]
80
HC + NOx [%]
Technical measures for Euro 6
Diesel
particulate
filter
NOX
treatment
-97 %
60
0.005
40
23
20
12
10
0
Euro 0
Euro 1
Euro 2
Euro 3
5
Euro 4
4
EU6
EU5
3
Euro 5
Euro 6
0.080
0.180
0.250
NOX emissions [g/km]
Source: VDA
Source: VDA
85
The first vehicles equipped with SCR technology are already on the German market.
The mandatory introduction of Euro 6 will significantly increase this figure. At first,
the market share of SCR vehicles amongst diesel passenger cars is expected to
be 25 percent, which could even rise to 75 percent of new vehicles by 2020. More
than 20 million German-branded passenger cars in Europe will then have SCR
technology on board.пїј
In the case of a passenger car, the consumption of AdBlue® is around 0.1—0.2 l/100km.
With the widespread introduction of SCR vehicles, topping up with AdBlueВ® will
therefore become as normal as filling up with diesel. To this end, an easily recognizable,
standardized, user-friendly and ISO-compliant AdBlueВ® nozzle has been developed in
partnership with the automotive and oil industry for filling stations throughout Europe.
The first filling stations already feature these AdBlueВ® nozzles. Further development of
the infrastructure is planned. As an interim measure until AdBlueВ® nozzles are available everywhere, assistance is at hand in the form of AdBlueВ® bottles containing almost
2 liters or the corresponding canisters containing 5 liters. Filling stations already offer
these two containers, thereby ensuring that these modern vehicles can be replenished
as of now.
SCR vehicle inventory in Europe, only German brands
in millions
25
20
15
10
5
0
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: VDA
Customer-friendly availability of AdBlueВ®
Refilling from
standard containers
Possible intermediate solution
Final solution
Uniform pumps and uniform containers
are the basic requirements for customer acceptance.
Consultation and cooperation with the mineral
oil industry is vital, also for the design of refill containers.
Source: VDA
The automotive and oil industries have
developed a user-friendly AdBlueВ®
nozzle for filling stations throughout
Europe
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
86
Occupational Safety
The new requirements arising from the chemicals law must be integrated into existing processes. The automotive industry’s objective is to continue on the same path of
improving work processes and reducing accidents in the workplace. Last year, too, the
number of work-related accidents and resulting days lost fell, although the potential for
improvement has been all but exhausted.
Accident frequency index of notifiable work accidents
for every 1 million hours worked
30
25
20
15
10
5
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
19
97
98
19
19
96
95
19
19
93
94
19
92
19
19
91
0
19
2012 saw a reduction in the number of
work-related accidents
Source: VDA
87
REACH – Still Flawed
The Regulation of the European Parliament and the Council dated December 18, 2007,
for the Registration, Evaluation, Authorization and Restriction of Chemical Substances
(REACH), has brought about a significant change since it came into force on June 1,
2007. The REACH regulation’s goal of ensuring that users and customers are better
informed about the hazards posed by chemical products has not yet been achieved.
The findings of the European REACH-EN-FORCE 2 monitoring project indicate that
52 percent of companies inspected are issuing safety data sheets that do not comply
with the regulation. One and the same chemical is frequently recorded in a number of
classifications, with a number of different labels in the ECHA’s classification and labeling
directory (CLP Helpdesk). This demonstrates that the entire process is too complex.
Implementation of the processes must be simpler and more practice-oriented. Despite
bureaucratic resistance, the REACH objectives must not be lost from view.
REACH is intended to inform users and
customers about the hazards posed by
chemical products
The substance bans or restrictions on use prompted by REACH must not conflict with
what other European or national legislation is attempting to achieve. It is not enough just
to look at the degree of hazard posed by a chemical. It should be a common objective to
exploit substances’ positive attributes to the extent permitted by law and appropriately
control and mitigate potential risks. Should this not be achieved, the consequence will
be that the production of such substances will be relocated outside the EU.
The European Commission has published a definition of nano materials. According to
this definition, each particle falling below a certain size is a “nano material.” Deriving
new legislation based purely on the size of a substance is to miss the point because a
substance is typically determined essentially in terms of its chemical characteristics. As
such, using different regulations to administer a substance would merely create unnecessary additional legislative complexity without any additional increase in safety and
environmental protection. The VDA therefore advocates identifying the potential hazards
in the known safety data sheets and defining the required protective measures. What is
important here is that it should be comprehensible for the user. The automotive industry
in particular is in favor of a practice-oriented, comprehensible and minimalist solution.
The new “risk acceptance concept” is intended to protect employees against carcinogenic substances. Two thresholds are defined under this concept – the accepted risk and
the tolerated risk. The latter is also referred to as the danger threshold. This threshold
should correspond to the risk of a non-smoker with no occupational exposure developing lung cancer. Above this threshold value, employees should not be exposed to these
substances. This concept, which appears at first glance to make sense, suffers however
from significant weaknesses when applied to individual circumstances. If this were
applied one-to-one to diesel engines, it would mean that just a few years hence, employers would have to create air quality in the workplace comparable with the air quality in
the very cleanest air areas. Such an approach is evidently unsound.
The definition of the limit for diesel engine emissions has been given an impetus by
a classification by the International Agency for Research on Cancer (IARC). What is
highly worrying about this classification is that it applies in the absence of any specified level of risk and is based on extremely questionable, scientifically dubious studies
based on completely obsolete diesel engine technologies no longer in use in the
Western world. But the classification applied to diesel engine emissions from modern
engines that then simultaneously ensued should not have done so because there are
considerable doubts about transferability and there is a lack of robust data. Even the
IARC Director admitted as much. As a matter of principle, a consistent worldwide
approach is imperative in this area as well.
The safety data sheets should explain
the required protective measures in a
way people can understand
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
88
Dangerous Goods – Electromobility Unthinkable
without Battery Transport
The rapid and uncomplicated transport
of lithium-ion batteries is critical to the
future success of electromobility
A transport ban means that currently
there is no guarantee of worldwide
service certainty
When it comes to transport, lithium-ion batteries are subject to comprehensive, internationally standardized regulations on dangerous goods. Among other things, these
lay down the requirements for packaging, transport, documentation, the labeling of
packages and vehicles, and safe handling during transportation. The future of electromobility will also depend critically on the rapid and uncomplicated, large-scale transportation of batteries worldwide.
Previously, there was limited scope for transporting damaged lithium-ion batteries
for the propulsion of hybrid and electric vehicles – case-by-case exceptions by the
competent authorities were required. New dangerous goods regulations for road
and rail transport have been in force since January 1, 2013. In future, the competent authorities in the dispatching countries will be permitted to define a packaging
method for damaged lithium-ion batteries. Outbound transport from the relevant
originating country is now possible in accordance with the prescribed conditions and
within the legal regulations. Individual authorities no longer need to be contacted.
These newly introduced rail and road transport regulations should also be incorporated into air transport based on empirical values. To date, the transport of new and
damaged lithium-ion batteries in excess of 35 kg has been banned. Lithium-ion batteries for vehicles, however, are heavier. There is therefore no guarantee of worldwide
service certainty. In accordance with experience of automotive lithium-ion batteries,
the VDA is calling for this 35 kg limit to be lifted.
89
The Outlook for EU Environmental Policy
“Living well, within the limits of our planet” – this was the title the European Commission
gave to its draft of a seventh Environment Action Program (EAP) covering the period
2013 to 2020 and intended to supersede the sixth EAP dating from 2001. At the heart of
the new program is the transition to a resource-efficient, environmentally friendly and
competitive, low carbon dioxide economic system. “Resource efficiency,” confers on a
component a particular relevance, the measured magnitude of which is thus far totally
unclear. The lead indicator “gross domestic product (GDP)/material usage” proposed
by the European Commission is coming in for wide-ranging criticism – rightly so. The
consequence of such a lead indicator would be to recognize as being particularly
resource-efficient those economic systems that are based on a low proportion of industrial value creation and a high proportion of services.
Economic systems with a high proportion of industrial value creation such as Germany
would be disadvantaged. Also, the attainability of one of the seventh EAP’s targets,
namely that of a competitive economic system, would be in serious doubt. Limiting the
absolute amount of materials an economic system consumes would also inevitably
have led up a blind alley. At the same time, the German committee of inquiry draws the
conclusion that in future, gross domestic product (GDP) should not be the only indicator
applied for “growth, prosperity, quality-of-life,” but should be complemented by an
additional set of indicators: to further illustrate the environmental thinking, information is
also to be provided about national greenhouse gases and biodiversity.
There is controversy surrounding
the measured magnitude “resource
efficiency” in the seventh Environment
Action Program
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
90
The question remains: What is “resource efficiency,” and what is the distinguishing
characteristic of resource-efficient husbandry? For many years, the German automotive industry has plowed a pioneering furrow. Its efforts with regard to an efficient
use of resources are bearing fruit. By way of example, one can cite numerous activities economizing on production materials, through lightweight construction and
recycling, the downsizing of components, new drive concepts and fuels, the introduction of the start-stop function and eco-innovations. The automotive and supplier
companies’ participation in research activities, such as the “Innovation platform
for resource-efficiency in production,” is yet another manifestation of the sector’s
proactive approach. The critical point is that resource-efficient behavior requires no
regulatory rules and regulations, for example in the form of a resource tax.
Environmental protection and economizing on materials in production are longestablished practices in the automotive industry, as evidenced by the VDA environmental key performance indicators, now in their 23rd year. They show vehicle
production decoupling from the use of resources:
Total energy consumption of German automobile manufacturers per vehicle
in GJ (passenger cars and trucks)
30
25
20
8 9 0 1
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 007 00 00 01 01
19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 2 2 2 2 2
Source: VDA
Total water consumption of German vehicle manufacturers
80,000,000
70,000,000
60,000,000
Consumption in m3
Automotive and supplier companies are
participating in research activities on
“resource efficiency”
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
4 5 6 7 8 9 0 1
90 91 92 93 94 95 96 97 98 99 00 01 02 03 00 00 00 00 00 00 01 01
19 19 19 19 19 19 19 19 19 19 20 20 20 20 2 2 2 2 2 2 2 2
Total
Industrial water
Drinking water
Source: VDA
91
25
7.00
20
5.25
15
3.50
10
1.75
50
0
Vehicles produced in mill.
Consumption in tons (in 1,000)
Solvent emissions of German vehicle manufacturers
8 9 0 1
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 007 00 00 01 01
19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 2 2 2 2 2
Vehicles produced
Solvent
Source: VDA
Total waste of German automobile manufacturers
6.0
700
4.5
500
400
3.0
300
Vehicles produced in mill.
Consumption in tons (in 1,000)
600
200
1.5
100
0.0
0
8 9 0 1
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 007 00 00 01 01
19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 2 2 2 2 2
Vehicles produced
Total waste
of which recycling
Source: VDA
C l i m at e a n d E n v i r o n m e n ta l P r ot e c t i o n P o l i cy
92
Based on the VDA environmental key performance indicators, the proportion of
recyclable waste relative to total waste from vehicle production in 2011 was almost 90
percent, thereby continuing the trend of previous years. It should be mentioned here
that regional notification requirements on municipalities sometimes artificially inflate
the proportion of waste to be disposed of. In the production-integrated environmental
protection arena, the adoption of best available technologies (BAT) will in future become
even more important in Europe. They are enshrined in the Industrial Emission Directive
2010/75/EC, which must serve as the central set of rules on the production side for
the decade. The goal enshrined in it of a harmonized European level of environmental
protection is to be welcomed. In the process, the best available technologies (BAT) will
assume yet further importance in deriving limits. This depends on industry being involved at an early stage in the processes for determining the BAT and implementing them
in national regulations and designing the overall process to be transparent.
There is a new obligation on operators of plants listed in Annex 1 of Directive 2012/75/
EC (e.g., paintshops), to draw up a status report on the soil and groundwater. The report
serves to preserve evidence and act a comparative yardstick for the obligation to return
the land to its original state when the plant is decommissioned. What is particularly
important here is not to duplicate regulations and to exempt from a ground survey those
plants and spaces already subject to extensive regulations under the regulation on
installations dealing with substances hazardous to water.
The EU Commission Communication on “Building the Single Market for �Green
Products’ of 4/2013” focuses on products environmental performance. But what are
the so-called “Green Products”? The VDA rejects the methodology envisaged by the
EU Commission for looking at products’ life cycles and their environmental footprint as
an assessment benchmark. The German automotive industry has made a very considerable contribution over a long period of time to making its products “greener.” In 2012,
the German automotive industry’s total investment in research and development was
around 22 billion euros. Developing new drive concepts is a critical part of this. The
German automotive industry remains on the right path with its “multi-track strategy” –
Economize, Complement, Replace.
Moving away from Oil
The multipronged strategy of the German automotive industry includes both vehicle-related
and traffic-related solutions.
w
Ne
com
mu
nic
ati
on
Reduc
e
vetrain
Battery-electric dri
Fle
xfue
e
Replac
ll
Fuel ce
Ga
s
epts
conc
lity
i
b
mo
n
roge
Hyd
id
iqu
to-l
ssma
ls
Bio
id
ue
iof
iqu
o-l
nb
s-t
tio
Ga
era
en
t-g
1s
h
nis
ple
e
R
Car-2
-X
Since 2013, plant operators have had to
draw up a status report on the soil and
groundwater
lv
eh
icl
es
e
Rais
tra
ins
ing
eng
ine
effic
Drive
ienc
train
y
optim
izatio
n
Lightwe
ight con
struction
Hy
b
rid
dri
v
Rolling resistance
Source: VDA
Transport and
Infrastructure Policy
Sandra Ussia – technician semi-automatic assembly machineries (plant for large batches), VOSS Automotive GmbH, Wipperfürth
T r a n s p o r t a n d I n f r a s t r u ct u r e P o l i cy
96
The Importance of Road Transport,
Today and Tomorrow
The passenger car is the number one means of
transport
In Germany, the passenger car remains
the most important means of transport
Among older people, the level of motorization is constantly growing
The passenger car is far and away the most important means of transport for passenger transport. In 2012, it accounted for more than 908 billion person-kilometers. That
equates to a market share of more than 80 percent. However, passenger transport
by road and rail in Germany – just as in the rest of Europe, moreover – appears to be
reaching saturation point. For a long time now, growth rates have been low. That is
why in the decades ahead passenger traffic will not be significantly different from what
it is today. That applies not just in terms of its level but also in terms of its structure.
All currently available forecasts assume that the present level of passenger traffic will
remain as it is far beyond the year 2030, as will the passenger car’s market share.
Shifts are however underway when it comes to car use between individual age groups.
Whereas among older people, especially women, the level of motorization is constantly growing, it is on the wane among the under thirties group. This is not however as a
result of this group of individuals holding the car in declining regard – on the contrary:
according to a recent McKinsey study, 78 percent of 18- to 24-year-olds assume that
they (too) will own their own car in the next 10 years, and according to TNS Infratest for 81 percent of 18- to 34-year-olds the first car of their own is something “very
special.” “Car fascination” is therefore undiminished among this age group as well. As
however, typically, this group (initially) tends to be comprised of low-earning individuals (apprentices, students, career starters), it reacts more sensitively than other
groups to the increasing cost of the good that is “mobility.”
Personal transport in Germany up to 2025
Person/km in billions
1,500
1,200
900
600
300
0
1970
1980
1990
1995
Car
2000
2005
Public road transport
2012
Rail
2025
Air transport
Source: DiW, progtrans, BMVBS, ITP/BVU
97
Whereas the total consumer price index has risen by 43 percent since 1991, for individual motorized transport it has grown by far more than 70 percent. Consequently,
according to a study by the German Federal Transport Ministry, among young single
households and young two-person households not owning a car, 80.7 percent and 77.4
percent, respectively, cite cost as the reason for their mobility situation. At the same
time, the proportion of academics in this age group is growing, their purchasing phase
naturally beginning later than among non-academics, living also as they do in (university) towns with good local public transport. Consequently, these days it isn’t until later
than was previously the case that this age-group enters a “car-receptive” life situation.
For representatives of this group therefore, the purchase of a car of their own is not
abandoned, merely deferred.
Open to new mobility offerings
In the life stage between 18 and 29, therefore, many citizens now switch to alternative
mobility offerings. They use local public transport for their basic mobility requirements
and if necessary fall back on car sharing offerings as and when needed. The motor
manufacturers have recognized this trend: they are now among the most important car sharing providers in Germany. Despite this market’s breakneck growth, its
absolute size is still moderate. In 2012, around 260,000 people were registered as car
sharing users.
Car sharing offerings are an attractive
alternative for young people
Young people value cars
The first car of your own is something very special
18—34 years
18—24-year-olds
35—44 years
45—54 years
40—69-year-olds
55—64 years
0
65 years and older
0%
15
30
45
60
75
90
I fully expect to be owning my own car
in 10 years� time
15 %
30 %
45 %
60 %
75 %
90 %
Source: TNS Infratest, 2011
I fully expect not to be owning my own
car in 10 years� time
Source: McKinsey, 2012
T r a n s p o r t a n d I n f r a s t r u ct u r e P o l i cy
98
The commercial vehicle – backbone of our
goods transports
The commercial vehicle scores when it
comes to the non-grain distribution of
consumer goods
The commercial vehicle is as important to goods transport as the passenger car is
to passenger transport. In 2012, it notched up 459.2 billion metric ton kilometers, in
the process covering more than 73 percent of the freight transport volume carried by
road, rail and inland shipping. This share has grown constantly over the decades. For
the next few years as well it is anticipated to grow somewhat more. The reason for this
is that the commercial vehicle is the “natural” means of transport in highly developed
economies. Whereas rail’s strengths — for technological reasons — are in carrying
large quantities and volumes of industrial goods (coal, oil, steel, etc.), transported
between factories with a rail connection, the commercial vehicle scores when it
comes to the fine-grained distribution of consumer goods (e.g., consumer electronics,
foodstuffs) to end customers. The more developed and rich an economy is, the greater
the demand for consumer goods and the greater their share of all goods within the
economy. By the same token, road transport’s share of total freight transport grows in
parallel with economic development.
99
Forcing freight transport onto the railways would therefore not make any sense. It
would be counter to the economy’s logistics needs and in many cases would be
environmentally counterproductive as well. This applies in particular to the 75 percent
of road freight transported over distances of less than 150 kilometers. For longer
distances also, interposing rail would not necessarily be environmentally friendly as
this would require energy-intensive transshipment processes twice over and cause
detours compared with the road route.
Co-modality a role mode
Which means of transport is best suited for which type of transport is decided by
the market and must not — as in a planned economy — be imposed across the board
by a political decision. The conceiving of modes of transport as being in competition
with one another and wanting to play them off against each other is a notion that
has long since been overtaken by reality. Different modes of transport have different performance profiles, and thus different tasks. They therefore complement one
another cooperatively in a co-modality sense.
Goods transport in Germany
Ton/km
1,000
151.9
800
80.2
704.3
600
109.2
95.4
77.5
70.5
400
64.0
61.9
200
54.8
59.3
64.1
459.2
66.5
402.7
364.3
282.4
169.9
0
1990
1995
2000
2005
2012
Truck
Rail
2025
Inland shipping
Source: DIW, progtrans, BMVBS, ITP/BVU
With their different performance
profiles, the various modes of transport
complement one another
T r a n s p o r t a n d I n f r a s t r u ct u r e P o l i cy
100
Financing of Highways
Dramatic underfinancing of the road network
The expansion of the transport
network continues to lag behind
traffic increases
The share of gross domestic product invested in the German road network has been
in continuous decline for years. If as recently as 1992 it still topped 1 percent, by 2008
it had fallen by almost a quarter to 0.76 percent, although passenger traffic on the
road has since risen by more than 20 percent and freight transport by even more than
80 percent.
For federal trunk roads alone, the German Federal Transport Ministry is estimating
a needs-based investment envelope of around eight 8 euros per annum. Estimates
by the Institut der deutschen Wirtschaft (Institute for Economic Research) are even
as high as 8.6 billion euros. In actual fact, average investment over the past 10 years
has been only 5.2 billion euros per annum. The consequence of this underfinancing
is more frequent traffic jams. The number and length of these jams is growing all the
time – in 2012, to almost 600,000 kilometers on motorways alone.
Yet there is enough money available. Every year the motorist pays more than 50
billion euros to the taxman in the form of mineral oil tax, VAT on the mineral oil tax,
motor vehicle tax and truck tolls. The remainder of the motorists’ 34 billion euros
goes to finance non-transport-related purposes.
Growing traffic jam problem on German motorways
600,000
500,000
400,000
300,000
200,000
100,000
2006
2007
2008
2009
2010
Overall length of traffic jams (in km)
2011
2012
Number of traffic jams
Source: ADAC
101
Trunk road financing in need of reform
The fact that only a small proportion of transport-specific taxes is plowed back into
road building is primarily to do with the fact that when politicians make spending
decisions, the transport sector regularly “draws the short straw” relative to “competing” political areas. It is quite simply more conducive to success in forthcoming elections to bestow direct financial transfers on specific voter groups than to invest these
resources in roads, because the individual utility of road-building investments is only
very indirect and above all visible only with a very long time lag.
The only way to defeat this fateful rationale is if politicians voluntarily bind their own
hands and reserve funds for road-building purposes that are sufficient for the need.
This is already long-established practice for rail transport, which, thanks to a performance and financing agreement for maintenance activities, can count on a fixed
annual amount of 2.5 billion euros for an initial period of 5 years.
The Federal Government could also conclude a multi-year financing agreement for
the trunk roads, for example with the already existing Verkehrsinfrastrukturfinanzierungsgesellschaft (Transport Infrastructure Financing Company — VIFG). Under
such an agreement, the VIFG would receive needs-based resources, ideally from
the truck toll revenue and budgetary resources for new construction, development
and maintenance. On this financial footing, the VIFG could then conclude Performance and Financing Agreements with the contract administration bodies in the
federal states for the upkeep of the trunk roads. Under these agreements, the VIFG
would make an agreed level of funding available to the federal state each year and,
conversely, the federal state would undertake to guarantee a pre-defined quality of
the existing network by means of appropriate maintenance activities.
Use of income from specific transport charges
in euro millions
60,000
50,000
40,000
30,000
20,000
10,000
0
0
1
4
6 7
8
9 0
2
3
5
1
4
6 7
8
9
0
2
3
5
199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200 200 200 201
Surplus
Expenditure on roads
Source: VDA
A voluntary hypothecation of
infrastructure funding is required
T r a n s p o r t a n d I n f r a s t r u ct u r e P o l i cy
102
Transport should not be made any more
expensive!
Despite the already very high tax burden on road transport, there are always those
who want to take the softer option for securing levels of investment adequate to the
need – by making transport yet more expensive by means of additional sources of
revenue. There are calls to extend the truck toll or introduce a passenger car toll, or
both together.
Passenger car toll – Cost-neutral? No way!
Experience with the truck toll shows
that the additional revenue is not
invested in road building
The advocates of a passenger car toll want to make their idea palatable to skeptics
by asserting that its introduction would be cost-neutral because other charges, such
as motor vehicle tax for example, would be reduced at the same time. This would also
generate more resources for roads, they say. But this promise is likely to prove unrealistic.
This is borne out by experience with the introduction of the truck toll. Currently, the
transport sector is paying additional toll-related costs of more than 4.6 billion euros per
annum (2012), offset by savings of only 1.2 billion euros from harmonization resources,
the reduction of motor vehicle tax and the scrapping of the Eurovignette compared
with the time before the toll was introduced. The additional revenue accruing to the
public purse does not even benefit the road system; to the extent that the public purse
has generated toll income, it has at the same time reduced the budget resources spent
on building federal trunk roads by a matching amount. The level of investment has
remained virtually unchanged both before and after the introduction of the truck toll.
Federal trunk road investment in billion euros
7
6
5
4
3
2
1
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
From budgetary resources
From truck tolls
Special programs
Source: VDA
103
This has damaged politicians’ credibility in the toll discussion. Despite all assertions
to the contrary, there is little reason to believe that things would be any different if a
car toll were to be introduced. At the same time, higher costs for individual transport
would hit the weakest members of society hardest.
The suggestion that this would finally be a way of getting foreign cars to contribute to
German road infrastructure costs also sounds contrived. Their mileage only accounts
for around 5 percent of German motorway traffic.
Were the car toll to be levied in the form of a time-dependent vignette, it would also
be environmentally illogical. It would penalize low-mileage drivers.
Last but not least, a motorway-related car toll would also divert traffic onto the lowerlevel road network, especially as passenger car drivers are less time-sensitive than
truck drivers. The consequence would be an increase in the number of accidents and
traffic fatalities as main roads are less safe than motorways, which because of the
structural separation between the carriageways and the absence of crossing traffic
are among the safest roads that exist.
T r a n s p o r t a n d I n f r a s t r u ct u r e P o l i cy
104
City toll
Pattern of settlement in Germany
argues against city toll
From time to time, one municipality or the other flirts with the “city toll” as a way of
generating income. But reference to foreign experience is of no assistance here because
the pattern of settlement in Germany is completely different. Germany is not characterized by one large metropolis with a largely empty hinterland but by numerous small and
medium-sized towns in close proximity to one another. The traffic density in German
towns is not comparable with that in Singapore or London. Above all, past experience
with parking charges indicates that consumers react very sensitively to price increases
and are quickly inclined to divert to a neighboring town to do their shopping.
Alternatively, people will also frequently drive to out-of-town shopping centers with their
free parking – with correspondingly longer journeys and greater pollutant emissions.
Extension of the truck toll
Extension of the truck toll would not
be economically efficient
“Transport experts” are also calling for the truck toll to be extended to all main roads
and to trucks with a gross weight of less than 12 metric tons in order to increase
revenue. Apart from the fact that this would make transport more expensive, it is also
questionable whether these measures make economic sense.
Because lighter trucks also cause less road wear, according to the relevant road
infrastructure cost report for determining the cost level, they should also attract a
toll of only around one third of the cost per vehicle kilometer compared with trucks
weighing more than 12 metric tons, i.e., around seven cents/vehicle kilometer. The
expenditure on the collection system (OBU, billing, toll booth, etc.) would, however,
remain the same. For seven cents/vehicle kilometer, something like an additional
cost of 2-2.5 cents/vehicle kilometer would be incurred just to collect these seven
cents. That would be anything other than economically efficient. Above all — unlike
heavy commercial vehicles — the charge would almost exclusively affect German
commercial vehicles because scarcely any light commercial vehicles are used for
cross-border transport.
Even if the truck toll were extended from the 1,135 kilometers of main roads currently
subject to the toll to the entire 40,000 kilometers, it is questionable whether revenue
and expenditure would still bear a sensible relationship to one another if a similarly
high monitoring density were to be provided on main roads as on motorways. What
needs to be borne in mind here is that commercial vehicle mileage on main roads is
75 percent less than on motorways. Moreover, regional trade, which is vitally dependent on main roads, would suffer from yet further added cost of this nature.
105
Incorporation of EURO VI in the truck toll
It therefore makes sense to continue only applying the toll to commercial vehicles
weighting 12 metric tons and more. The latter currently pay a toll rate that varies
according to their pollutant emissions. However, the current version of the Toll Level
Ordinance, which came into force on January 1, 2011, does not yet take account of
the new EURO VI emissions standard.
A dedicated toll category needs to be
introduced for EURO VI trucks
Environmental interests also dictate that the truck toll should be used to create an
incentive to invest in the new, especially low-emitting vehicle generation. Such an
incentive would help to offset the additional cost for EURO VI commercial vehicles.
What is therefore required is to introduce a dedicated toll category for EURO VI
commercial vehicles with costs significantly lower than the next most expensive
toll category.
In the guise of the emissions-based truck toll, transport policy is using a thoroughly
tried-and-tested mechanism for avoiding harmful emissions by commercial vehicles.
As a result, the share of mileage accounted for in Germany by EURO V commercial
vehicles subject to the toll has increased from around 5 percent in 2006 to more than
66 percent in only 6 years – without any further increase in transport costs. Additional
costs for the transport sector as a result of the so-called internalization of external
costs, as is now possible in principle under the new EU Road Charging Directive, are
therefore not required.
Emissions-based truck toll has proved
its value
T r a n s p o r t a n d I n f r a s t r u ct u r e P o l i cy
106
Better Use of the Highways
Field trial longliner-trucks
Larger vehicles save on transport
movements, costs and emissions per
metric ton or passenger
As the road network, relative to the need, is under-dimensioned, it is all the more
important to make the most efficient use possible of the existing capacity. One of the
most important tools in this regard is the use of longliner-trucks. This is consistent
with the logic and developments also to be observed with many other modes of transport: larger vehicles drive economies in transport movements, costs and emissions
per metric ton or passenger. This is what happens in air passenger transport, just as
it does for container shipping or on the railways: In 2010, for example, approval was
given for a field trial for the use of freight trains greater than 750 meters in length.
In neighboring European countries, for example in the Netherlands, trucks with an
overall length of 25.25 meters have been on the roads for years. The Federal Government has therefore decided to investigate their use in Germany as well in the context
of a nationwide field trial – while complying with current weight restrictions of 40
metric tons or 44 metric tons in combined transport. Two of these new vehicle combinations generate the same transport capacity as three conventional combinations.
This considerably reduces fuel consumption, CO2 emissions, required road space and
axle loading.
The field trial began on January 1, 2012. Scientific support is being provided by the
Federal Highway Research Institute (BASt). To date, the fears expressed by opponents
prior to commencement of the trial that vehicles might jeopardize road safety have not
been confirmed. So far, not one of the vehicles participating in the field trial has been
involved in an accident.
Conservation of resources thanks to trucks
7.82 m
7.82 m
13.6 m
13.6 m
-15 %
-20 %
Axle load
-10 %
Space required on the road
-5 %
CO2 emissions
0
Fuel consumption
Initial misgivings were not
substantiated
7.82 m
13.6 m
13.6 m
7.82 m
-25 %
-30 %
Source: VDA
107
The field trial is unfortunately being made more difficult by the continuing refusal of
a number of federal states to take part. Consequently, some stretches of motorway
cannot be used, so that many transport companies with nationwide routes cannot
countenance taking part in the test even if the route start point and destination are
located in a participating federal state. A further problem is that not all municipalities
permit the use of the “last mile” from the motorway junction to the destination.
Green light for long-distance coach travel
Since January 1, 2013, long-distance coach travel in Germany has been permitted.
Until then, this had only existed in Germany in exceptional circumstances in order to
protect the railways. Transport experts estimate that on the same route, the longdistance coach will be between 15 and 30 percent cheaper on average than the
train. However, the railways don’t need to worry about any diversion of traffic at their
expense. Firstly, there has been no evidence of this abroad — for example when longdistance coach travel was introduced in Great Britain. Secondly, with its high-speed
routes, the railway’s target is time-sensitive customers willing to pay more money. The
long-distance coach, on the other hand, is pitching its offering at price-conscious
customers who previously had to refrain entirely from long-distance travel for cost
reasons, or else use a car-share agency.
The long-distance coach offers significant price advantages
“Intelligent Transport Systems” national
action plan
“Intelligent Transport Systems” (ITS) are an additional tool for increasing transport
efficiency. Equipment for influencing the network enables the traffic to be more evenly
distributed and overloading avoided. Depending on the traffic, capacity can be temporarily increased by opening the hard shoulder; the navigation systems in the vehicle
take direct account of the very latest information on traffic hold-ups and hazards.
Many different players are involved in this – EU, Federal Government, federal states
and municipalities, motor manufacturers, digital card or smart phone manufacturers
and data providers. This entails transport policy, technical, legal and economic issues,
the resolution of which is made easier by a common understanding on the part of the
players of what ITS are trying to achieve and their various responsibilities. This is taken
into account by the development of the “ITS road action plan,” drawn up by the Federal
Government with the involvement of the aforementioned groups and submitted at the
end of 2012. This plan defines the national ITS strategy in accordance with the provisions of the European ITS Directive and derives priority action areas for the future.
Intelligent equipment for influencing the
network distributes traffic more evenly
T r a n s p o r t a n d I n f r a s t r u ct u r e P o l i cy
108
Traffic Safety
Accident toll 2012
Despite increasing mileage, the number
of traffic fatalities continues to fall
Although the mileage driven on German roads has increased year in year out, the
number of road traffic fatalities in the past 20 years has progressively fallen. This trend
was only interrupted in 2011, when a number of special effects coincided: on the
one hand, there was a strong base effect compared with 2010, when the very wintry
and snowy weather at the beginning and end of the year cut the number of fatalities.
Compared with the long-term trend, personal injuries and deaths experienced an
above-average decline. On the other hand, the warm and dry spring of 2011 marked
an early start to the two-wheeler season, resulting in an increased number of accidents among this group of individuals.
The fact that the 2011 figures were an outlier was illustrated by 2012, in which the
original trend of constantly falling fatality figures resumed. Compared with 2011, the
number fell by 6.5 percent to fewer than 3,750 fatalities.
Particularly gratifying were the figures for federal motorways. Here, the number of
fatalities fell by 11.7 percent to 400 people, once again significantly more than for the
road network as a whole.
The rate of traffic fatalities on motorways, international comparison
per billions of vehicle kilometers
France
-94.9 %
United Kingdom
-94.2 %
Belgium
-93.2 %
Austria
-87.2 %
Switzerland
-90.5 %
USA*
-83.2 %
Germany
-92.6 %
0
10
20
30
40
50
2010
1970
Source: IRTAD, *USA most current, as of 2009
109
A general speed limit will not achieve its
intended aim
The motorways are the safest roads. Two people are killed for every 1 billion vehicle
kilometers on the motorways, whereas 6.6 fatalities are suffered on other road categories for the same mileage.
German motorways are among the
safest roads in an international
comparison
In an international comparison as well, German motorways are among the safest
roads. In countries with a general speed limit — such as Austria or Belgium, for
example — with 2.2 and 2.9 fatalities, respectively, more people are killed per 1 billion
vehicle kilometers than on German motorways.
Demands for a general speed limit are therefore bereft of any logical foundation.
Moreover, a temporary or permanent speed limit is already in place for around half the
total distance driven on motorways here in Germany.
As such, concentrating speed limits on accident black spots or imposing them temporarily and depending on the situation in the event of adverse weather conditions,
for nighttime noise abatement or when traffic is heavy, has proved effective. Flexible
speed limits of this nature are also far more credible than rigid ones and demonstrably encounter significantly higher acceptance among motorists. Last but not least,
“bespoke” speed limits also fit far better with the image of a modern transport policy
in the era of telematics.
30 km/h limit in towns – a good idea?
There are constantly isolated calls being heard to limit urban speed limits to
30 kilometers per hour across the board for safety and noise abatement reasons.
Whether, however, safety and noise abatement are actually served by this is more
than questionable.
An across-the-board 30 km/h urban
speed limit would have negative
consequences for road safety and
noise abatement in residential areas
Nowadays, there is typically a 50 kilometers per hour speed limit in force, especially
in the main road network in urban areas. Residential areas lie within the bounds of
this main road network. Their network of access roads is rightly typically designated
as a 30 km/h zone. This system (different road functions – different speeds) strikes a
balance between the interests of residents and transport users.
Also, there would be concerns about motorists increasingly taking shortcuts through
residential areas if the main roads no longer offered any time advantage compared
with the residential areas because of a 30 km/h speed limit – with all the negative
consequences there for road safety and noise abatement.
eCall – Getting commitment from everyone
involved
When there is an accident involving personal injury, it is critical for the injured to
receive first aid as quickly as possible. This is where the pan-European automatic
emergency call system eCall comes in. In this system, as soon as a vehicle registers a
serious accident, it automatically sends an emergency call, at the same time notifying
the vehicle’s exact GPS location. Accident experts estimate that this approximately
halves the time between the occurrence of the accident and the arrival of the emergency services. The EU Commission is endeavoring to commission a pan-European
system using the emergency number 112 from the end of 2015 onward. What is
important here, however, is that all the links in the emergency call chain – automotive
industry, mobile phone operators and public emergency control centers – are signed
up to developing the system in the same way – failing which eCall cannot operate.
Moreover, it should also be possible to continue operating and developing the manufacturers’ already existing, fully functional emergency call offerings in parallel.
All emergency call chain stakeholders
must be signed up to developing the
system
Taxes and Customs
Volker Mai – bricklayer, GAP-Leader, Faurecia GmbH, Neuburg
Ta x e s a n d C u s to m s
112
Tax Policy – Update and Outlook
In the Federal Election campaign, tax
increases are moving to center stage
Reviving the tax on assets would
especially harm medium-sized family
companies
The topic of taxes has played a key role in federal election campaigns in the last few
years. This is also true in 2013. In contrast to the last Federal Election, when discussions focused on tax relief and tax simplifications, tax increases are now moving to
center stage. Taxpayers are squeezed hard. The opposition wants to reintroduce a tax
on assets, or a property levy, increase the peak tax rate and tighten tax on interest
(interest income tax) and inheritance tax. Added to these are indirect tax increases
due to the broader measurement basis. A fatal error is the plan to restrict genuine
operational expenses, such as the deduction of passenger vehicle costs, under the
umbrella of reducing environmentally harmful subsidies. Even the government camp
— usually against tax increases — is in favor of introducing a financial transaction tax.
There is also a demand for a passenger vehicle toll.
Increases in taxes and duties are to be firmly rejected. They inhibit growth and
damage Germany as an industrial location. Tax increases result in competitive disadvantages for German companies. This particularly applies to a revival of the tax on
assets or the introduction of a property levy. With the exception of France and Luxemburg, no other EU states charge tax on assets. In addition, the tax on assets is reason
for severe constitutional concerns and would lead to high collection and compliance
costs. As a capital-based tax, it overtaxes lower-income companies and intensifies
crises. It would be a dangerous path to tread if medium-sized family companies had
accepted a dramatic increase in capital-based taxes. This would truly affect capital
and put thousands of companies at risk.
An increase in the peak tax rate for income tax would result in competitive disadvantages for German sole traders and partnerships – both compared to limited companies and internationally. It took Germany years to reduce its unemployment rate.
The changes to income tax law due to broader measurement bases and lower rates
significantly contributed to this. Politicians would be well advised to boost the innovative and investment strength of industries rather than sap the energy of industrial and
family companies.
Taxation for groups should be
modernized
But there must also be no backdoor tax increases. One deterrent example was the
attempt to introduce a fictitious tax on the deductible for liability insurance in the area
of insurance tax for passenger vehicle fleets. This was only abolished after numerous
associations had voiced severe criticism of this phantom tax, which seemed to have
paved the road for further hidden tax increases. The new tax travel cost law, whose
ostensive aim is to simplify, also poses the risk that new definitions might be introduced — “first place of work” instead of “regular place of work” — thereby cancelling
out the decision by the Federal Finance Court to the detriment of the tax payer.
113
Instead of increasing tax, it would be better to finally do away with the obsolete
trade tax and to modernize taxation for groups. State budgets should not be consolidated by increasing income, but by analyzing the expense structure and changing
spending behavior.
A review of tax policy in the finishing election period reveals both highlights and
lowlights. On the one hand, the tax framework conditions improved. For instance, early
on in the election period, any corporate and inheritance tax reform elements exacerbating the crisis were attenuated from 2008. This particularly related to the interest
limitation and the addition of rental and leasing interest to trade tax. In the automotive industry, the improved taxation on vehicle sales to company employees (year-old
car taxation), the continued support for retrofitting filters for diesel vehicles and the
continued vehicle tax exemption for electric vehicles are of particular importance.
Key improvements to company tax
for the business location were not
implemented
On the other hand, the coalition treaty failed to realize the announced key improvements to the structure of corporate tax, which are significant for the business location.
This particularly applies to the further development of tax bodies for a more modern
tax for groups, the trade tax reform and the restructuring of loss offsets. In terms of
trade tax, this special tax was again not removed. In terms of the tax bodies, only
small corrections were implemented regarding the profit transfer agreement. From the
point of view of the automotive industry, it is also disappointing that the announced
simplification of the company car tax was not realized. The new Federal Government�s
key tasks therefore include initiating these corporate tax reforms. The main aim must
be to strengthen the competitiveness of the German industry.
There must be no standstill in terms of tax policy in the 2013 election year. Urgently
required tax modifications must be implemented. From the point of view of the automotive industry, this is especially true of the tax disadvantage for electric company
cars and the withdrawal of the red-tape monstrosity “Confirmation of receipt.” It is also
important for the export regulations regarding the new peak tax balance scheme for
power and energy tax to be launched as soon as possible so that a offsetting during
the year becomes possible.
The tax disadvantage for electric
company cars must be balanced out
urgently
Ta x e s a n d C u s to m s
114
Energy Taxation
Peak tax balance scheme continues for the
manufacturing industries
The follow-up regulations for the peak
tax balance scheme for energy and
power tax must not put the international
competitive position at risk
The EU Commission subsidy approval for the so-called peak tax balance scheme for
energy and power tax for the manufacturing industries expired at the end of 2012. It is
important for the German automotive industry that follow-up regulations are implemented, which ensure that the international competitive position is not put at risk and
which are practicable. The second law to change the Energy Tax and Power Tax Law,
which regulates the peak tax balance scheme, and the related agreement with the
associations, aim in this direction.
Basically, companies applying for the peak tax balance scheme must introduce an
energy management system (EMS) by the end of 2015. Moreover, the manufacturing industries overall must improve energy intensity by 1.3 percent and 1.35 percent
per year from 2016. In the automotive industry, it was important for companies, which
cannot apply for the peak tax balance scheme, to continue to benefit from the first
relief phase (reduced tax rate). Important key points were set out in the negotiations
with the responsible areas:
• The peak tax balance scheme will continue at the same level
(2.3 billion euros of relief p.a.) from 2013.
• The peak tax balance calculation will remain the same,
• as will the group of beneficiaries (manufacturing industries based on the
classification by industrial sector 2003).
• The follow-up regulation is designed for 10 years until 2022. This signifies a high
level of rights and planning security for the companies.
• In 2013 and 2014, evidence of introducing certain energy management systems
(relief for SMEs) suffice to be granted the peak tax balance.
The approach suggested by the industry of a so-called “bubble solution” for all
manufacturing industries was accepted. As a result, the industry as a whole, rather
than individual companies, must provide evidence for the efficiency increase to be
achieved by 2015.
Evidence of target achievement for the mentioned efficiency objective is to be
collected without red tape based on the official statistics values. The advantage of the
agreement with the associations is the fact that companies applying for the peak tax
balance need not individually put in the high administrative effort to provide evidence
for the efficiency increase. Instead, the official statistics data are used as evidence of
target achievement, so that timely and legally binding monitoring becomes possible.
It is important for the practical implementation of the new peak tax balance scheme
that export regulations including definitions, notices on EMS evidence and alternative
systems for SME are presented in a timely manner. When calculating the set-off of the
peak tax balance during the year, particular urgency is required.
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EU Energy Tax Guideline – Rejected increase
of the diesel tax rate
In 2011, the EU Commission presented a proposal for a new version of the EU
Energy Tax Guideline. The proposal included a split of the existing fuel minimum
rates into a CO2 and an energy component. In addition, a clear increase of the diesel
minimum tax rate is planned, with the so-called equivalence principle (general
adjustment of the tax rates including above minimum rates) to be definitively
implemented by January 1, 2023. The tax rate for diesel would then generally be
above that of gasoline. In Germany, the diesel tax rate would have to be raised by 60
percent to 0.75 euros/liter.
Energy tax in Germany
Energy production
Energy tax (DE)
Now
Planned approx.
Change
Gas
0.65 euros/ liter
0.65 euros/ liter
-
Diesel
0.47 euros/ liter
0.75 euros/ liter
60 %
Source: VDA
Tax system and industry-political
concerns speak against increasing
diesel tax
Ta x e s a n d C u s to m s
116
A severe tax system as well as climate and industry-political concerns speak against
increasing diesel tax. In addition to the equivalence principle, it is particularly worth
criticizing the fact that the commission proposal weakens the market position of the
European automotive industry, which would have a negative impact on employment
policy. The guideline proposal would put at risk the achievement of targets to lower
CO2 emissions.
The increased tax for diesel puts at risk
the achievement of targets to lower
CO2 emissions
Diesel engines are more efficient than gasoline engines. Its consumption is approx.
25 to 30 percent lower. This efficiency advantage is also expressed in lower CO2
values. Tougher diesel taxation would result in a significant reduction in the diesel
proportion of the European vehicle fleet. An increase in tax on diesel fuels, and
the related reduction in demand for diesel models, puts at risk achievement of the
objective to lower CO2 emission. Thus, the automotive industry would also experience economic strains. A higher diesel tax charge would cancel out the investments
in the last few years and weaken the position of European automotive manufacturers on the global markets.
The VDA has pointed out these critical aspects again and again and explained its
convincing arguments to politicians. The European Parliament and the ECOFIN
Council have spoken out against the equivalence principle. Based on the European
Parliament’s recommendations and the results of ECOFIN, a compromised EU Energy
Tax Guideline has been submitted under the Cypriot Council Presidency. This does
not stipulate the equivalence principle. It takes account of the VDA’s central request
and above all avoids a high increase in the diesel tax rate. The EU Commission should
finally withdraw the draft guideline from 2011.
However, it seems questionable given numerous other disputed areas (CO2 component, amount of minimum tax rates) whether the new guideline proposal will be
applied in the near future. The efforts of the Irish Council Presidency alone to reach
an agreement regarding minimum tax rates promise only limited success.
From a German perspective, there are concerns regarding the plan to raise the
minimum tax rate for natural gas as a fuel strongly from 2018. This rate is significantly
higher than the rate currently applying in Germany of 3.86 euros/year for natural gas
as a fuel. This would counteract the efforts to increase the use of environmentally
friendly natural case as a fuel on the road. We suggest, as an alternative to increasing
the tax rate for natural gas as a fuel and removing the tax exemption for bio natural
gas, to extend the energy tax relief for natural gas and biomethane until a market
share of 3 to 4 percent of the fuel market (20 to 27 million MWh) or a fleet of 1.1 to
1.4 million natural gas vehicles has been achieved.
Customers must be able to understand
the fuel price development for
natural gas
Predictably, lower fuel prices are a significant factor when buying a natural gas
vehicle. Given the life cycle for natural gas vehicles and petrol stations of 10 to 15
years, vehicle manufacturers, the energy industry as well as passenger, lorry and bus
customers even now need a clear perspective for after 2018.
The VDA identifies an urgent need for action for main containers in commercial
vehicles including on a national level. It should be clarified here that the tank can be
added by the manufacturer or a third party. This would prevent disputes when interpreting national law.
117
Company Car Tax – No Subsidies
The prevailing regulations for the taxation of the private use of company cars based
on the 1 percent method or the total cost method (travel log method) are appropriate
and have proven themselves in practice. It is not intended as a tax privilege. This is
because the greening of the company car tax as purported by the opposition would
be contrary to the basic principles of income tax. This would lead to contradictory
distortions in tax law and cause considerable burdens and complications.
The applicable company car tax is an
appropriate, tax-law based flat rate
An environmental focus of this tax must not counteract the efforts to simplify the
company car tax. The applicable company car tax is an appropriate, typical, tax lawbased flat rate. It is much easier than the total cost method (travel log method) and
therefore contributes to a simplification of tax. The government can also benefit from
this. This is because the flat rate results in higher taxes than would be collected if
everyone used the travel log method.
There are also industry and employment political reasons against a tougher company
car tax. The company car segment is dominated by German automotive manufacturers; 86 percent of cars sold are from German brands. A reduction in sales in
this segment would have a negative effect on employment. Company cars are also
important in terms of environmental policy aspects. They play a pioneering role for the
reduction of CO2 in terms of environmental technology. Since 2008, the CO2 emission
of company cars has been reduced by 27.0 g/km CO2 to 143.3 g/km CO2 , whereas the
CO2 value for private vehicles fell by only 20.7 grams per kilometer. The CO2 values of
newly registered company cars are almost on the same level.
The environmental requirements of a car are not part of income tax law. Administrative law to lower CO2 emissions is the EU’s way to regulate passenger car CO2 values.
The latter already has very ambitious CO2 requirements. Added to this are mineral oil
tax as a consumption-dependent tax and vehicle tax. In light of the depressed economy, it would be negligent to put at risk the highly sensitive sales segment “Company
cars” with a dispensable discussion regarding taxation.
Company cars play a pioneering role
for the reduction of CO2in terms of
environmental technology
The sales segment “Company cars”
must not be put at risk by a discussion
of company car tax
No greening of company car tax
Greening of company car tax must be rejected. This applies both to the political
suggestion to limit the deduction of passenger car costs (especially fuel costs) and
to political considerations to base taxation of the monetary benefit from the private
use of company cars on environmental aspects.
A (full) deduction of business expenses for company cars is not a tax subsidy.
Business expenses are disbursements necessitated by the business. They comprise
all costs of passenger vehicles used for business, including all tax depreciation.
Restricting the deduction of vehicle costs as operating costs for company cars
(here: fuel costs) would impose an unacceptable restriction on the deduction of
business expenses (breach against net principle) and interfere with entrepreneurial
freedom of action.
Full deductions of business expenses
for company cars are not a tax privilege
Ta x e s a n d C u s to m s
118
Making company taxation a tool for pursuing environmental goals is conceptually
flawed. In addition, one-sidedly restricting the deduction of company car fuel costs
as a business expense would also lead to severe unequal treatment. Moreover, the
ecological slant on the deduction of vehicle costs runs counter to the necessary
simplification of the tax system.
Current tax on monetary benefits is appropriate
An additional tax charge would lead to
excess taxation
There are also serious concerns regarding political efforts to evaluate the monetary
benefits from the private use of company cars by employees according to the CO2
emissions of a vehicle. As for deductions for passenger vehicle costs, this would lead
to contradictory distortions in tax law and cause considerable burdens and complications. The taxable monetary benefit based on the 1 percent method is a typical
regulation and appropriately presents the actual costs of a private use. The prevailing
regulations for private trips based on the 1 percent method or the total cost method
(travel log method) are appropriate and have proven themselves in practice.
Basing the taxation of the private use of company cars on environmental principles would be contrary to the basic principles of income tax. An increase in the tax
measurement basis would have no real countervalue and the additional tax charge
resulting from this would therefore lead to excess taxation. In our view, this would be
a breach of the ability-to-pay principle.
Professional high-mileage drivers
already pay too much today in applying
the 1 percent method
A high proportion of company car users work in sales and depend on appropriate
mobility. Especially professional high-mileage drivers, such as customer services
mechanics or sales reps, require a vehicle suited to their work requirements due
to the high driving performance and the required loading options alone. One can
certainly not speak of status symbols here. In such cases, the proposal would necessarily lead to excess taxation. In any case, professional high-mileage drivers already
overpay today when applying the 1 percent method because professional high-mileage drivers have a much lower proportion of private trips than the typical 1 percent
regulation assumes.
Segment structure for company cars 2012
Units as percent
Sports cars
Caravans
1.4
0.3 Utilities
Upper
Others class
5.9
0.6
1.4
4x4
12.9
Upper medium class
8.3
Large van
6.9
Medium class
22
Small cars
8.3
Compact class
25
Mini
3.6
Mini van
3.3
Source: Federal Motor Transport Authority, VDA
119
Company cars are not a domain of large vehicles. Nearly two thirds of the new
registrations of company cars are smaller vehicles (microcars, small cars, compact
and medium-class vehicles), with the proportion of upper range cars being merely
1.4 percent. At 25 percent, the compact class is the most popular company car
segment, following by medium class at 22 percent.
A CO2-based dynamizing of the tax measurement basis would be in stark contrast to
the objectives of simplifying tax and would result in additional, unnecessary bureaucracy. As a result, many company car users with a low proportion of private trips
would change from the 1 percent to the total cost method with travel log, which would
lead to significant time and administrative expenses for all parties involved.
Conclusion: Evidence shows that the current company car taxation is not a subsidy.
The suggested drastic toughening of company car tax and the restriction of passenger vehicle costs as a business expense would have no bearing on the case and be
unlawful, and constitute a serious backward step in limiting the tax and duty charge
as well as simplifying taxation.
Specialists agree that in the interest of simplifying taxation and appropriately taxing
monetary benefits from the private use of company cars, the best solution would still
be to dispense with the 0.03 percent surcharge. In return, the distance flat rate would
no longer be deducted when applying the 1 percent flat rate method, if such vehicles
are used for trips between the residence and workplace.
The current company car taxation is not
a subsidy
Ta x e s a n d C u s to m s
120
Electric Vehicle – New Taxation Rules
Taxation on electric vehicles —
Improve framework conditions
Electric vehicles require adjustment for
tax disadvantage
Investigations by the National Platform Electromobility (NPE) show that the market
start-up for electric vehicles in Germany initially largely depends on the commercial
sector and that private demand will at first remain comparatively low.
Against this background – relating to the commercial sector – NPE suggests that a
special deduction be granted for purchasing electric vehicles, and that there should
also be an adjustment for the tax disadvantage regarding the 1 percent regulation
for the private use of electric company cars. Both measures should be designed on a
declining basis and granted for a limited period.
Politicians are addressing two measures in more detail: The adjustment for the tax
disadvantage suffered by electric vehicle regarding the tax on the private use of
company cars, and the extension of the vehicle tax exemption for electric vehicles.
Whereas the extension of the vehicle tax exemption has already been implemented,
the adjustment for the tax disadvantage was left behind due to the failed Annual Tax
Act 2013, which included the adjustments for the tax disadvantage for electric vehicles. It is important for the automotive industry that the undisputed adjustment for the
tax disadvantage for electric vehicles is pursued further even after the failure of the
Annual Tax Act 2013 and is implemented as soon as possible. This is to take place as
part of the law to implement the Mutual Assistance Directive and the Amendment of
Tax Regulations (AmtshilfeRLUmsG). Regarding the adjustment for the tax disadvantage for electric vehicles, the regulations from the Annual Tax Act 2013 were used.
121
Extension of the vehicle tax exemption
There has been one important improvement of tax framework conditions regarding
the tax regulations for electric vehicles: The vehicle tax exemption for electric vehicles
was extended from 5 to 10 years. In addition, the vehicle type “passenger vehicle”
is no longer used. The vehicle type no longer matters when claiming for vehicle tax
relief for an electric vehicle. As a result, e.g., commercial vehicles and microcars also
benefit. In addition, the vehicle tax exemption is only granted for pure electric vehicles.
Plug-in hybrid electric vehicles do not benefit. The term electric vehicle was, however,
supplemented by fuel cell vehicles. The 10-year vehicle tax exemption applies to
electric vehicles originally registered in the period from May 18, 2011, to December
31, 2015. For electric vehicles originally registered in the period from January 1, 2016
to December 31, 2020, a vehicle tax exemption is granted for 5 years.
The tax exemption for electric vehicles
was extended to 10 years
Overview “Vehicle tax for passenger vehicles”
It must be welcomed that the tax exemption was not extended to include vehicles
with CO2 emissions below 50 grams per kilometer. Such an extension together with
an absolute limit value would be misconceived in tax system terms and would result
in distortions. Such distortions would above all result in the limit area. They lead to the
exclusion of specific larger vehicles based on the disproportionate increase in battery
sizes and costs, and would go hand in hand with a stop to innovations in this area.
Politicians are setting an important
sign with the tax exemption for electric
vehicles
An important sign is set with the tax exemption for electric vehicles. Even if the absolute amounts of the tax exemption are relatively low compared to the overall costs,
the exemption is an important symbol. The extension of the vehicle exemption has
a signaling effect which, together with other measures, provides incentives for the
acquisition of environmentally friendly electric vehicles.
Adjustment for tax disadvantage for electric
vehicles
A reduction of the measurement basis Gross List Price is required when taxing the
private use of company cars, because electric vehicles compared to conventional
vehicles will in the near future necessarily still have a significantly higher Gross List
Price, which is however not reflected in a higher usage benefit. A compensation
would therefore serve to create a correction taxation of the private use of company
cars based on the performance principle. This would not lead to preferential treatment compared to conventional company cars. Instead, a tax disadvantage for electric vehicles is removed. There would also be no preferential treatment compared
to private buyers. The acquisition of private vehicles is part of asset management
not relevant to tax, so that no taxation takes place. As a result, a tax disadvantage
would also not apply.
The proposal by the Federal Government to make an adjustment for the tax disadvantage for electric vehicles when taxing the private use of company cars, as first
suggested in the planned Annual Tax Act 2013 and then in the Law to Implement
Administrative Assistance, must be welcomed. According to this, the costs of the
battery system for electric vehicles and plug-in hybrid electric vehicles are to be
deducted from the measurement basis Gross List Price, and a flat-rate reduction may
be used to simplify matters.
If electric vehicles with an externally chargeable mechanical or electrochemical storage medium are used privately, the list price must be reduced by any included costs
of the battery system when the vehicle is first registered. For vehicles purchased by
December 31, 2013, this is 500 euros for each kWh of battery power. This amount will
be reduced for vehicles purchased in subsequent years by 50 euros for each kWh of
battery power. The reduction cannot exceed 10,000 euros. The maximum amount is
reduced by 500 euros a year in subsequent years.
The adjustment for the tax disadvantage would result in a taxation of the
private use of company cars based on
the performance principle
Ta x e s a n d C u s to m s
122
A flat-rate adjustment for the tax disadvantage could achieve simple taxation
The proposal is an important measure in order to reduce the tax disadvantage for
electric vehicles and improve the tax framework conditions for their use. A flat-rate
adjustment for the tax disadvantage could achieve simple taxation. But complications can also result from the fact that the amount of the adjustment for the tax
disadvantage is limited by two maximums (maximum per kWh of battery power and
absolute maximum), which are both annually reduced independently. In the interest
of a tax simplification, the VDA advocates waiving at least the absolute maximum.
Waiving the (absolute) upper limit would also create a more appropriate tax. In addition, the suitability of the adjustment for the tax disadvantage could also be checked
as part of an evaluation.
It must be welcomed that the adjustment for the tax disadvantage is granted for
electric vehicles and hybrid electric vehicles. It is appropriate for externally chargeable
hybrid electric vehicles to be included in the adjustment for the tax disadvantage. This
corresponds to the recommendations by the National Platform Electromobility (NPE).
It is also important for fuel cell vehicles to be included in the adjustment for the tax
disadvantage. However, it must be noted here that the adjustment for the tax disadvantage based on the kWh value of battery power is not suited to fuel cell vehicles
because these vehicles do not have a traction battery like other electric vehicles. An
adequate comparative vehicle could be used here.
A repeated failure of the Annual Tax
Act would have negative consequences
for the distribution of electric vehicles
After the failure of the Annual Tax Act 2013 earlier in the year, it is extremely important for the adjustment for the undisputed tax disadvantage for electric vehicles to be
implemented as part of the Law to Implement the Mutual Assistance Directive. There
must be no tax blockade: Another failure would have dramatic consequences for the
distribution of electric vehicles.
In his summary expert statement, “Tax adjustment for the disadvantage of electric
vehicles,” Prof. Andreas Musil from the University at Potsdam points out that the
adjustment for the tax disadvantage for electric vehicles makes constitutional sense
and that it is not a tax subsidy:
Against the background of the performance principle based on Section 3 (1) of Basic
Constitutional Law (GG), the higher acquisition costs of electric vehicles must be
compensated by an adjustment for the tax disadvantage, which reduces the measurement basis by the increased Gross List Prices/acquisition costs. In order to avoid
unjustified unequal treatment, constitutional law would suggest that electric vehicles,
plug-in hybrid electric vehicles as well as fuel cell vehicles be included. It is no cause
for concern under constitutional law that private buyers would not participate in the
new regulation.
The acquisition of purely private vehicles is part of asset management not relevant
to tax, so that no taxation should take place. Given the lack of tax relevance, an
adjustment for a tax disadvantage would also not apply. It is possible to use a flat
rate as an adjustment for the tax disadvantage. However, the typical adjustment for
the tax disadvantage set out in the draft law fails to create full tax charge equality
in all cases due to the lid on the additional costs to be considered (initially 10,000
euros, then 500 euros less per year). This lid is not factually justified and hides risks
regarding constitutional law. The adjustment for the tax disadvantage does not
include any subsidies in the sense of Section 107 of the Treaty on the Functioning of
the European Union (TFEU). A better position of some production areas is missing,
because the new tax regulation results from requirements immanent in the German
income tax system, particularly the requirement to create tax charge equality
according to Section 3 (1) GG.
123
Vehicle Taxes
On refueling, when buying a new vehicle, taking out car insurance, via vehicle tax or
in the private use proportion for a company car, drivers cannot escape the government’s incessant requests for payment. And drivers already reached their limit in
terms of taxes and duties a long time ago. As a result, politicians must vehemently
reject the higher taxes in this area. On the other hand, drivers should be sure to utilize
all deduction options.
Anyone using their private passenger vehicle to drive to work, for business trips or for
journeys to the family home when working abroad, can claim these costs and benefit
from a tax reduction.
The following applies:
Trips between residence and workplace
Employees using their own vehicle to drive to work can apply the distance flat rate.
This is 0.30 euros per working day for the distance between residence and workplace
(one way). This flat rate covers all regular vehicle costs. Extraordinary costs incurred on
driving between the residence and the workplace, such as the costs of an accident not
caused by intent or gross negligence (medical costs, repair costs, etc.), can be deducted
as advertising costs.
The German government is asking
drivers to fork out additional cash
Ta x e s a n d C u s to m s
124
Physically disabled persons with a reduction in earning capacity of at least 70 percent,
or a reduction in earning capacity of at least 50 percent and a significant walking
disability, could deduct either actual costs or a distance flat rate of 0.60 euros as
advertising costs.
Journeys to the family home in the case of two households
Employees working abroad and maintaining a second household at their place of
employment, which is recognized as a second household for tax purposes, can deduct
travel costs for tax relief. This includes the first trip to take up work and one trip to the
family home per week (journey to the family home).
A distance flat rate of 0.30 euros per kilometer between the workplace and the location of the residence is granted for weekly journeys to the family home in the driver’s
own passenger vehicle. For physically disabled persons, the actual costs or a flat rate
per kilometer between the workplace and the location of the residence of 0.60 euros
are recognized as journeys to the family home).
Actual costs of the first trip to the workplace can be submitted as advertising costs.
Instead of actual costs, a flat rate of 0.30 euros per kilometer can be used.
Business trips
The flat rate per kilometer for business
trips in private passenger vehicles is
0.30 euros per kilometer driven for work
If the employee makes trips in his passenger vehicle for the employer’s business as part
of a business trip, the employer may compensate him or her for the relevant proportion
of actual vehicle costs, including an annual wear and tear amount, free of wage tax.
To make things simpler, travel costs can be deducted either by submitting individual
evidence of actual overall costs, or as a flat rate per kilometer. This is 0.30 euros per kilometer driven for work. This amount covers all vehicle running costs. If the employer can
prove that his or her costs per kilometer are higher, and if the employer does not reimburse him or her this higher amount, the employee can claim the difference between
actual costs and the reimbursed costs as advertising costs.
Vehicle tax
Vehicles registered after June 30, 2009,
are taxed based on their CO2 value and
cubic capacity component
The passenger vehicle tax is the actual vehicle tax. This becomes due once the vehicle
is registered. For vehicles registered after June 30, 2009, this tax is based on their CO2
value and cubic capacity component.
The milestones of this new passenger vehicle tax are as follows:
• Continuous linear CO2 tax scale at tax rate of 2 euros g/km
• Staged CO2 tax exemption of 120 g/km from 2009 to 2011; 110 g/km in 2012 and
2013 and 95 g/km from 2014
• Cubic capacity-related base rate amounting to 2.0 euros per started 100 ccm for
gasoline-powered vehicles and 9.50 euros for diesel-powered vehicles
• Limited, one-time tax exemption from 2011 to 2013 to the value of 150 euros
for passenger cars with diesel engine that meet the Euro 6 exhaust emission
regulations
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The tax authorities provide a passenger vehicle tax online calculator to calculate the
passenger vehicle tax:
http://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/
Steuern/Steuerarten/Kraftfahrzeugsteuer/BMF_Anordnungen_Allgemeines/201201-19-interaktiver-kfz-rechner.html
Buyers choosing a (purely) electric vehicle can claim a passenger vehicle tax exemption for an additional 10 years.
Overview of vehicle tax for passenger vehicles
First registered after July 1, 20091)
Electric engines 2)
(exclusively)
Combustion engines
(inspective of fuel used and
including all hybrids)
Diesel
Petrol/Wankel
Limited tax exemption
On first registration
May 18, 2011
to
December 31, 2015
January 1, 2016
to
December 31, 2020
10 years
5 years
Limited tax exemption for emission
level Euro VI
up to 150 euros on first registration
January 1, 2001 to December 31, 20133)
“Basic amount”
for each commences 100 cm3 of ccc
Diesel
9.50 euros 4)
Otto/Wankel
2.00 euros
CO2-dependent amount
Weight-dependent amount
On first registration
for each commenced 200 kg
of admissible total weight
11.25 euros
up to 2,000 kg
12.02 euros for the proportion from 2,000 to 3,000 kg
12.78 euros for the proportion from 3,000 to 3,500 kg
July 1. 2009
to
December 31,
2011
50% reduction
120
January 1. 2012
to
December 31,
2013
From
January 1.
2014
2 euros per g/km of CO2 value exceeding
110
95
Annual tax
(rounded to full euros and due on the vehicle registration calendar date)
1)
2)
3)
4)
Additional passenger vehicle first registered between November 5, 2008 and June 30, 2009, to which the CO2-based
vehicle tax applies based on the so-called beneficiary check
(Section 18(4a) of the Vehicle Tax Act—KraftStG).
Recharged in full or primarily by, e.g., a battery or a flywheel power generator (electrochemical of mechanical energy
storage) or, e.g., by a fuel cell (zero-emission energy converter)(Section 9(2) KraftStG).
The exemption period is calculated to the day based on the annual tax for the passenger vehicle (Section 3b KraftStG).
The higher tax rate for diesel passenger vehicles is a flat-rate adjustment for the lower energy tax on diesel compared to
petrol
Source: German Federal Ministry of Finance, VDA
Ta x e s a n d C u s to m s
126
Particle filter retrofitting for diesel vehicles
receives subsidy
Subsidies for particle filter retrofitting
for diesel vehicles was extended to
December 31, 2013
Drivers retrofitting a diesel vehicle with a particle filter can apply for a cash subsidy
under certain conditions. At the VDA’s request, the Federal Government reissued the
program for retrofitting diesel vehicles with particle filters last year. The subsidy was
extended until December 31, 2013. It amounts to 260 euros for retrofits in 2013 and
is paid until funds run out. If the retrofit took place in 2012, the subsidy is 330 euros.
Retrofits of diesel vehicles aim at contributing to lowering harmful particle emissions
and improving air quality. Retrofitted vehicles are awarded a green pollution badge
and can enter environmental zones.
The Federal Office of Economics and Export Control (BAFA) again handled the subsidy
program. Retrofits of diesel passenger vehicles and diesel commercial vehicles with a
total registered weight of up to 3.5 tons (light commercial vehicles) are subsidized.
Particle filter retrofitting 2012 and 2013 at a glace
Particle filter retrofitting
Subsidy
Subsidy 330 euros (2012),
and 260 euros (2013)
Application period
from January 1, 2012, to
December 31, 2013
Applications (from February 1, 2012)
on www.bafa.de
Retrofit period
from January 1, 2012,
to December 31, 2013
First registration date of the vehicle
Diesel passenger vehicle
before January 1, 2007
Light commercial vehicle
before December 17, 2009
Other condition
After the retrofit, the vehicle must be
equipped with a particle filter of a
specified particle reduction level or
class
Source: VDA
127
Customs Questions
Customs duties and taxes constitute a great operational challenge for companies with an international focus. They can block or drive wide-ranging strategic
decisions. Due to their high economic importance and the companies’ cash flow
situation, customs and VAT law optimizations form part of the key tasks of management. The VDA customs committee therefore puts a strong focus on the strategic
requirements in the area of customs duties and taxes, where compliance and risk
management play an important role. The same applies to reporting as an important
information and decision-making basis for management. The international standardization of transfer prices and customs value calculation led to discussions of
new paths. This can result in significant simplification and contribute to removing
existing unequal treatment with its distorting impact on competition. In terms of
export controls, compliance and integration into organizational culture again play
a key role. For everyday operations, export control guidelines and an export control
network are of particular importance.
By now, customs and VAT law optimizations form part of the key tasks of
company management
Ta x e s a n d C u s to m s
128
Moreover, the VDA is dealing with practical customs questions in work groups.
Special focus will be placed on the topic “Origin of Goods and Preferences.” A VDA
work group was created for this. This deals with the introduction of list regulations
and the design of long-term supplier declarations. The work group is taking action
against the introduction of list regulations to determine non-preferential origins. The
latter would lead to significant complications. An extension of the validity period
for supplier declarations from 1 to 3 years is considered positive. This could reduce
costs and effort for the companies. However, there are concerns because the validity period will in future be based not on the effective date as previously, but on the
issue date. This would lead to a significant burden for the companies. A rolling
process would have to be installed, including significant process and IT adjustments. The relationship to the calendar year would then also be lost.
In addition, the work group is working on a “preference data homogenization,” and
considering a portal solution. This would serve as a practical aid for the companies.
The main topics of the VDA work group EU Customs Questions are the new version
of the European Union’s Customs Code (UZK) and a transfer of goods using accounts
entry on import. The entry transfer must not be abolished. This would have a negative
impact on the companies’ economic behavior. The EU Customs Code must not lead to
a restriction in parliamentary rights due to so-called “delegated rights acts.”
A VDA adhoc work group called “Night Vision” is dealing with export control questions regarding the use of long-distance infrared cameras in passenger vehicles. It
aims to ensure that the dual use list is adapted to new developments.
Customs registrations for exports to Eastern Europe result in significant practical
problems. This especially relates to component dispatches reaching the recipient as
additional or wrong deliveries. This leads to difficulties in implementing a subsequent declaration or an additional customs report. The VDA is supporting finding a
practicable solution.
The VDA promotes the withdrawal of
the confirmation of receipt
Several petitions and statements by the VDA express its view that deliveries within
the EU should not require the immense bureaucratic burden of so-called confirmations of receipt. The VDA has requested a withdrawal of the confirmation of receipt
or at least an admission of practicable alternative evidence. As part of a new version
of the VAT Implementing Provisions (UStDV), the confirmation of receipt will now be
“attenuated.” Alternative evidence — as requested by industry — is to be permissible
in light of practical application difficulties: The confirmation of receipt is to form only
one way to show deliveries within the EU. Other evidence will also be allowed. In
addition to the delivery note, this above all includes the carrier receipt requested by
the VDA. The legal situation applying until December 31, 2011 (without confirmation of receipt), can be used until the new version of the UStDV is issued. The new
regulations will enter into force on October 1, 2013. However, the VDA believes that
there is still room for improvement. This above all relates to electronic transfers
and the requested evidence for payment of the consideration on the buyer’s bank
account, as well as the vehicle registrations for buyers abroad. It would still be best
to waive the confirmation of receipt altogether.
Powertrain Engineering
Jürgen Meyer – master of manufacturing systems engineering, smk systeme metall kunststoff Gmbh & Co, Berga/Kyffhäuser
Powe rtrai n E ng i n e e r i ng
132
“Worldwide Harmonization,” Basic Principles
Type approval processes and self-certification are the two fundamentally different processes for certifying vehicles
Basically there are two fundamentally different procedures around the world for vehicle
certification: type approval process (TGV) and self-certification. Two regulatory camps
can be described in terms of content, but not how the approval operates: The 1958 UN
ECE Agreement and the FMVSS (Federal Motor Vehicle Safety Standards of the USA).
The “1958 agreement camp” also includes the People’s Republic of China, for example, which while it did not sign the 1958 agreement has based large parts of its own
national standards and regulations on it, additionally incorporating other requirements
of its own, however.
Under the principle of mutual recognition, an EU type approval is valid
throughout the EU
No vehicle certification for public roads without approval: by the same token, this also
applies for spare and consumable parts impacting safety and the environment (for
example, brakes and catalytic converters). Within the EU, type approval is governed
by Directive 2007/46, which refers to the UN ECE regulations (now 125 ECE regulations under the umbrella of the 1958 Agreement). According to the principle of mutual
recognition, an EU type approval for a vehicle is valid throughout the EU and beyond,
for example in Switzerland.
Although the 1958 Agreement does not include type approval for the entire vehicle,
it does describe the processes for approving systems and for appointing testing
organizations. In addition to the EU and its member countries, the signatories of the
�58 Agreement also include Eastern European countries as well as Japan, South Korea,
Turkey and Australia. The �58 Agreement is therefore in use virtually worldwide.
133
Signing of the Agreement is not synonymous with the application of all of the currently 125 ECE regulations; these in fact need to be signed individually. Japan, which has a
national type approval of its own, is one of the signatory countries of the 58 Agreement and, in addition to a number of regulations pertaining to lighting technology,
also recognizes the regulation on braking systems, for example.
Work is currently underway within the UN’s ECE WP 29 (World Forum for Technical
Harmonization of the UN ECE) on the International Whole Vehicle Type Approval
(IWVTA) project, in order to expand use of the 1958 Agreement. The objective is to
describe the overall approval of a vehicle within the framework of a �58 Agreement
to be adapted for that purpose. The protagonists are Japan, the EU, France and
Germany. The first discussion of the full draft in WP 29 will probably be at the end
of 2013; the first approvals are anticipated in 2017. WP 29’s goal is quickly to involve
China and India.
The FMVSS constitutes the basis for approving vehicle safety systems in the USA,
Canada and a number of South American countries. Vehicles are approved in accordance with the self-certification process. Vehicle characteristics of relevance to the
environment are, however, certified via an approval system, in the USA as well. The
1998 UN ECE Agreement (also referred to as the parallel or global agreement) was
created against the backdrop of the major differences between the two “regulatory
camps.” The prime movers behind this agreement were the USA, the EU and Japan
from the very outset of the first negotiations.
The �98 Agreement now numbers 33 signatory countries in all, including the USA,
the EU and its member states, China, India, Russia and Australia. The 1998 Agreement does, however, contain a “fundamental flaw” because, although the signatory
countries are required to pass the implementation process into national law, once a
global regulation (Global Technical Regulation) has been promulgated, implementation per se is not prescribed within a given timescale. The Agreement’s negotiating
partners finally managed to agree that a progress report has to be made to WP 29
after a period of twelve months. Six GTRs have been passed for the passenger car
and commercial vehicle arena, a number of measures defined there have found their
way both into ECE and US American regulations. Even with the 98 Agreement, we are
therefore still a very long way from global harmonization, despite starting in 1998 with
loftier ambitions.
To resolve this conundrum and move closer to harmonization, the 1998 Agreement
requires intensive use, albeit not without making the necessary treaty amendments to
eradicate the “fundamental flaw”. Transitional and adoption periods also need to be
defined and the cost benefit analysis process rigorously implemented before drawing
up new regulations. The IWVTA process should also be systematically developed in
parallel. A gradation of the required limits might be of assistance here in enabling less
technically developed countries as well to accede to the 1958 Agreement. The challenge is to breathe life into the vision of “Certified once – accepted everywhere.”
The 1998 harmonization agreement
must be used
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134
Combustion Engines
By 2020, around 80 percent of all
vehicles will still feature an internal
combustion engine
The latest generation of gasoline
engines deliver fuel consumption
savings of almost 30 percent relative to
a comparable conventional vehicle
The latest diesel engines reduce fuel
consumption by around a third
Amid all the discussion on the future electrification of the drivetrain, the fact must not
be overlooked that in the coming decade as well, the internal combustion engine will
continue to be the dominant means of propulsion in cars and trucks. It is to be anticipated that by 2020, around 80 percent of all vehicles will still feature an internal combustion engine. This in no way contradicts the development of electro mobility. Even the
most modern vehicles, capable of being run on electric power alone, frequently feature
an additional internal combustion engine. Further improvements made to the internal
combustion engine will therefore remain one of the core challenges facing development
departments within the German motor industry over the next few decades.
The statistics relating to improvements in the efficiency of German automobiles
speak for themselves. Internal combustion engines account for a very large proportion of these improvements as their consumption and emissions values continue to
fall year on year. The latest generation of gasoline engines featuring supercharging,
displacement “downsizing,” direct injection, stop-start technology and intelligent
thermal management result in savings of almost 30 percent in fuel consumption over
comparable conventional vehicles with a naturally aspirated injection engine and no
supercharging system.
The situation is similar with diesel engines since a direct injection diesel engine
with turbocharger is now the state of the art. The latest generation of diesel engines
features fewer cylinders and a smaller displacement, multiple high-pressure injection,
higher supercharging, stop-start technology and similarly intelligent thermal management. Overall, this means fuel savings of around one-third compared to earliergeneration diesel engines. Hybridization provides additional potential for savings: on
average these systems produce further reductions in fuel consumption of around
15 percent.
Gasoline and diesel drive systems still have a long way to go
Consumption in percent
100
-15 %
-25 %
-40 %
80
60
40
20
0
Standard engine technology
in mid-2000s
Current engine
innovations
Currently in
development
Additional efficiency
potential:
engine + hybrid
Source: Bosch, VDA
135
Hybrid Drive
A strategically important adjunct to the internal combustion engine is the increasing
electrification of the drivetrain in the hybrid drive system: in addition to the classic drivetrain, the vehicle also features electric motor components and an electric
energy accumulator. Ideally, these electric components allow the vehicle to operate
on electricity energy alone – namely with zero emissions. However, this presupposes
a correspondingly powerful electric motor and an electric energy accumulator. In this
case, therefore, we talk about a “full hybrid.”
A hybrid drive vehicle features electric
motor components, as well as the
classic drivetrain
Typically, the battery is charged by the internal combustion engine or by recovered
braking energy. But external electrical charging is also conceivable. This creates the
bridge between the classic engine and the electric vehicle. Experts talk about a “plugin hybrid,” namely a hybrid drive with a power point. A full hybrid can reduce emissions by around 20 to 30 percent. Especially in town-center operation, high braking
energy recovery can achieve even greater reductions.
The simplest form of hybrid is the so-called mild hybrid. It is characterized by small,
efficient and low-cost electric components. By its very nature, the emission reduction
potential of the mild hybrid is less than that of the full hybrid because of a limited ability to recover braking energy; from an economic perspective, however, the mild hybrid
represents a very good compromise between higher cost, comfort and lower fuel
consumption because even it can cut fuel consumption by up to 10 percent.
Fuel reductions of up to 10 percent are
possible with a mild hybrid
Powe rtrai n E ng i n e e r i ng
136
Electromobility
Electric Vehicles are an integral part
of the German automotive industry�s
multi-track strategy
The ground is now being prepared for
ramping up the electric vehicle market
in Germany
The German motor industry is heavily committed to the development of electromobility because climate protection and increasingly scarce fossil fuels, as well as an
increasing world population and the concomitant increasing need for mobility, require
new solutions and alternative drive technologies. Electrified vehicles can make an
important contribution to protecting the environment and avoiding emissions. That
is why they are an integral component of the German manufacturers’ and suppliers’
multi-track strategy. Together with the other members of the National Electromobility
Platform (NPE), the German motor industry has agreed to a systemic, brand-based
and open technology concept to ensure that by 2020 it will have developed into the
lead supplier and Germany into a lead market for electromobility.
The NPE progress report (3rd report) was presented to the Federal Government in
June 2012. At the same time, this marked the starting signal for a comprehensive and
regular monitoring of shared assumptions, objectives and recommendations. There is
still a long way to go before Electric Vehicles achieve a broad market penetration, but
the ground is already being prepared for ramping up the market in Germany. This is
why an appropriate framework needs to be created.
Electric Vehicles are vehicles that operate entirely or in part on electric energy. Electric
battery vehicles are propelled entirely by an electric motor. Hybrid vehicles, on the
other hand, feature both electric propulsion and an internal combustion engine.
137
For the period to 2020, NPE experts have accorded a higher percentage share to
plug-in hybrid vehicles (PHEV) and Electric Vehicles with range extender solutions
(REEV) as compared to purely battery Electric Vehicles (BEV). This is also confirmed
by current developments characterized by plug-in hybrid technology.
Vehicles are referred to as Electric Vehicles as construed by the NPE when they are
propelled primarily by electric power and feature a rechargeable battery capable
of being charged from the mains. As such, Electric Vehicles include purely battery
propelled vehicles (BEV), plug-in hybrids (PHEV) and extenders (REEV).
The plug-in hybrid fills the gap between the classic internal combustion engine
vehicle and the electric vehicle. The vehicle can be operated all-electrically by a
powerful electric motor, conventionally by an internal combustion engine and also by
a combination of both systems. In the process, the battery as an energy accumulator
is charged not just by the internal combustion engine, but also directly from the mains
supply. Because of the battery capacity, plug-in hybrids can cover long distances in
all-electric operation.
Range-Extender Electric Vehicles (REEV) feature a powerful electric motor as their
main means of propulsion and an internal combustion engine as a “range extender.”
The vehicle is operated by all-electric power. In the REEV, the battery, as an energy
accumulator, can be charged directly from the mains supply. The battery capacity is
designed in such a way that it is capable of covering the average mobility requirement. When the battery capacity is low, the combination of internal combustion
engine and generator generates electricity, operates the electric motor and charges
the battery.
Battery Electric Vehicles (BEV) are driven by electric motors alone. All-electric traction
is achieved with these vehicles. Energy is stored in batteries, which are connected to
the mains supply for recharging. All of these vehicles’ systems and power units have
to be operated with electric energy.
Powe rtrai n E ng i n e e r i ng
138
Natural Gas Drive
CO2 emissions are lower for natural
gas drive than for a diesel or gasoline
engine
Natural gas predominantly comprises methane. The advantages of natural gas are
obvious: CO2 emissions are significantly lower than for diesel or gasoline and motorists save money every time they fill the tank.
When this gas is burned, approximately 25 percent less CO2 is produced than with
gasoline and significantly fewer nitrogen oxides and fine dust particles. Already today,
the stringent Euro 6 standard for passenger cars can be complied with using natural
gas. This is why it is a German natural gas car that has secured the top slot in the
VCD environment list.
Natural gas drive is currently the
cheapest form of motoring
Security of supply as well is better than for conventional fuels. There are big secure
reserves of natural gas. Germany obtains the gas from many regions of the world;
14 percent comes from domestic sources – Lower Saxony in particular. While global
production has been continuously increasing for years, the price of gas has fallen
significantly since its peak in 2005. The consumer only has to pay half as much for
natural gas fuel as for a comparable car with a gasoline engine.
Natural gas mobility is currently the cheapest way of running a car. But consumers are
still insufficiently familiar with natural gas as an efficient fuel, which is why the prevalence of natural gas cars is still comparatively low. A representative survey by TNS
Infratest revealed that only a few citizens have a detailed knowledge of the advantages of natural gas vehicles. As such, it is hardly surprising that natural gas cars’ share
of the total vehicle fleet in 2011 was only around 0.2 percent – or 94,000 vehicles.
The choice of natural gas vehicle
models continues to expand
More filling stations in Germany have
to offer natural gas as a fuel
Relative to this small fleet size, the natural gas vehicle offering is considerable: there
are currently 14 passenger car models available in Germany – the range extends from
the very smallest car via the family van to the upper mid-class. This year as well, the
choice of models continues to grow, because natural gas is an important component
of the German motor industry’s multi-track strategy based on the triad “Economize
– Complement – Replace.” In addition to technologies for reducing fuel consumption
and completely new drive systems, the intention here is also to replace oil-based fuels
with new, more climate-friendly fuels – natural gas being one of them.
Natural gas also plays an important role in the Federal Government’s fuel strategy. The
objective is to increase its share of the German fuel mix to 4 percent by 2020. To achieve
this, the number of natural gas cars would have had to increase to around 1.4 million
units. To get to this number, more filling stations have to offer the fuel. The natural gas
mobility initiative aims to increase the number of natural gas filling stations from 900
now to 1,300 stations – this would represent 10 percent of the German filling station
network. Only when motorists come across natural gas at an ever increasing number
of filling stations will they seriously consider this type of propulsion. The development
of the network could be accompanied by tax incentives. What is desirable is to reduce
the network charges for natural gas filling stations, which currently pay more than other
users. And the KfW support program for building natural gas filling stations should be
developed in line with the market to increase demand.
139
A further central proposal aims to prevent the expiry of the currently advantageous tax
treatment natural gas enjoys. As measured by its energy content, natural gas is taxed at
13.90 euros per megawatt hour (MWh). By way of comparison, for diesel the rate is 47.20
euros /MWh. In 2019, the tax rate for natural gas is to increase by 130 percent. That
could have a significantly adverse effect on these vehicles’ market prospects. Depending on the type of vehicle, the price advantage of the environmentally friendly fuel could
shrink to such an extent that a natural gas vehicle would no longer be economically
worthwhile. The current tax rate should therefore remain in force until such times as
the target of 1.4 million vehicles has been achieved. A degressive development in the
tax relief – which the natural gas mobility initiative is proposing – would ensure that the
lower tax revenues would remain limited and calculable for the taxman.
Promoting the building of filling stations and extending energy tax breaks are two
central policy planks for the environmentally friendly and future-proof fuel that is
natural gas. The motor industry has also set itself the objective of winning significantly more customers over to natural gas. Natural gas has enormous potential as a
future fuel. That is why it is strategically correct and necessary for politicians and the
economy to develop this energy source for transport as well.
Natural gas has big potential as
a future fuel
The Fuel Cell
As a sustainable alternative drive technology to the conventional internal combustion
engine, the fuel cell fits seamlessly into the German motor industry’s sustainability
strategy. The fuel cell combined with the hydrogen tank constitutes an outstanding
drive technology with a higher energy potential than a battery to make an electric
vehicle suitable for use all day every day. The next generation of fuel cells will make
the motor compact and light enough for large-scale use. The latest version of the fuel
cell is 40 percent smaller and 20 percent more economical than the technology that
has been used in the past.
Like the pure electric motor power concept using batteries, the fuel cell is highly
efficient and generates zero emissions. The ability to produce hydrogen efficiently
and flexibly from renewable energies, such as surplus wind energy, creates additional
potential. The range of a fuel cell is comparable to that of a current petrol engine.
Refueling is also quick, which means that a fuel cell vehicle today offers the same
flexibility and convenience of a vehicle with a conventional engine.
The fuel cell (chemical formula H2) is ready for series production – the next objective is now to develop a H2 filling station infrastructure. A start has already been
made with seven public H2 filling stations currently in Germany. To date, however,
this means that there is only adequate infrastructure in the Clean Energy Partnership centers – Berlin and Hamburg. Around 1,000 filling stations nationwide would
be required to ensure the technology’s long-term success.
The latest version of the fuel cell
is significantly smaller and more
economical than the technology
previously in use
A fuel cell vehicle now offers the
convenience of a conventionally
powered vehicle
Powe rtrai n E ng i n e e r i ng
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“Clearly Better”– the Clean Diesel Offensive
in the USA
The Clean Diesel campaign is
intended to raise awareness of the
technology’s advantages in the USA
(www.clearlybetterdiesel.org)
Six large auto enterprises in the VDA have launched a joint information campaign in
the USA on “Clean Diesel.” The benefits of the latest diesel passenger car technology
in terms of cleanliness, fuel consumption and performance are highlighted under the
slogan “Clean Diesel. Clearly Better.” Their common goal as innovation champions is
to provide Clean Diesel with an information platform that cuts across brands and to
raise awareness of the technology’s benefits.
The campaign’s participating companies are using the campaign logo in the US
American market in adverts, on banners, in TV ads as well as in product brochures
and in their showrooms, referring in the process to a common website. The website
features brief examples from everyday motoring life in the US to explain facts about,
sound levels and the cost of filling a tank in easy-to-understand terms and to neutralize reservations about the diesel passenger car. The participating companies also
present current passenger car models that merit the “Clean Diesel. Clearly Better.”
logo as a badge of distinction. These vehicles boast a fuel efficiency that is 18 percent
higher on average compared with corresponding gasoline models.
Clean Diesel
The “Clean Diesel. Clearly Better.” information campaign in the USA was jointly initiated by Audi, BMW,
Bosch, Daimler, Porsche and Volkswagen.
Source: VDA
Vehicle Safety
Yue Zhang – Master of Business Administration, Regional Commodity Manager Asia, Anvis Deutschland GmbH, Steinau an der Straße
Ve h icle safety
144
General Development of Safety in Road Traffic,
Accident Figures
The numbers of people injured in road
traffic once again declined significantly
in 2012
Germany and the EU Commission have set themselves the objective of continuously
reducing the number of accident victims. Since the high-water mark in 1970 when more
than 21,000 road users were killed, the number of such cases in Germany has declined
steadily. In 2012 as well, the numbers of people injured in road traffic once again declined considerably in comparison to the previous year. This continues the positive trend in
accident statistics in Germany. In 2012, 10.1 percent fewer people were killed in traffic
accidents (3,606) than in 2011. There was also a decline in the number of people injured
in road traffic, to about 384,100 (-2.14 percent). The number of accidents involving
personal injury also fell compared to the previous year, by 2.2 percent.
Last year, Germany’s autobahns witnessed significantly fewer deaths than was the
case on secondary roads or within built-up areas. The rise in accidents involving fatal
injuries on secondary roads recorded in 2011 did not continue in 2012: there was a
decline of almost 8 percent compared to the previous year. In built-up areas, there
was also a reduction in the number of people killed in road accidents – although to a
lesser extent (-1.0 percent).
Records show a significant decline in
motorcyclists and pedestrians involved
in accidents
The breakdown of accident figures according to the mode of transport involved once
again shows that fewer car occupants were injured, and there was also a significant
decline in motorcyclists and pedestrians involved in accidents. An evaluation of fatal
injuries based on age groups in 2012 shows the steepest decline among children
(aged up to 15 years). The decline among other age groups was on average 8 percent
compared to 2011. At approximately 50 percent, car occupants still represent the
largest group of all those injured in road traffic. This applies in particular to car occupants in the age group between 18 and 65 years.
The trend in overall accident figures is relatively strongly influenced by the weather.
This is made particularly clear with regard to the summer and winter months by
comparing accident figures for the years 2010, 2011 and 2012. Effects of weather
can lead to temporary increases in accident numbers, in particular those involving
damage to property, but will not reverse the generally positive trend apparent over
the past 20 years.
There was a slight decline in the number of accidents involving alcohol, by approximately 800 accidents. In spite of the high mileage driven, 709 billion kilometers, the
mileage-related risk of being killed in a road traffic has declined further (approximately
5.1 deaths per 1 billion kilometers driven).
145
The trend over many years in the area of vehicle safety has been moving towards the
introduction of numerous driver assist systems and interlinking them with passive safety
systems. Vehicle manufacturers and the components industry are working together on
concepts for integral safety, not only in order to lessen the consequences of accidents,
but also to reduce accident severity or even avoid accidents altogether. A series of
different active driver assist systems have been developed over recent years; these not
only provide warnings but also intervene in the driving dynamics to an increasing extent.
Further development of them holds out the promise of increasing potential for further
continuous improvements in road safety.
Another important aspect of reducing accident numbers concerns ongoing improvements to the infrastructure. High mileages and heavy traffic demand a correspondingly well-developed infrastructure, which provides an environment for all road users to
estimate risks and analyze hazards rapidly. Individual critical situations in road traffic
can also be avoided by taking account of corresponding points of conflict in the planning and maintenance of the road network. Over coming years, there will also be an
increasing exchange of information between vehicles and the infrastructure via what
are referred to as roadside units. This means information can be provided to the driver
in real time and used for avoiding accidents.
Number of accident fatalities by road user type in Germany
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20
Pedestrians
Bicycle
Motorbike/powered cycle/moped
Passenger vehicles & commercial vehicles
Source: destatis
New driver assist systems intervene in
driving dynamics
Roadside units will provide an increasing exchange of information between
vehicles and infrastructure
Ve h icle safety
146
Rescue Data Sheet – Database – License Plate Check
There are ever-increasing requirements
on the emergency services when handling vehicles that have been involved in
an accident
The rescue data sheet provides
vehicle-specific information for the
appropriate procedure to use when
rescuing a patient
Ongoing development of vehicles is increasing the requirements on the emergency services when handling vehicles that have been involved in an accident. Previous requests submitted by the emergency services regarding technical systems, in
particular pyrotechnic components such as airbags or belt tensioners, the function
and structure of various vehicle safety systems, special aspects of the bodywork and
vehicle powertrain, have all led to the presentation of extensive vehicle-specific and
technical information as well as tactical procedures in the form of guidelines for
rescue services. These guidelines have been primarily produced for information and
training purposes. However, these booklets are only suitable to a limited extent for
providing support during a deployment. This gave rise to the necessity for specific
vehicle information to be provided in the form of data sheets.
The rescue data sheet provides the emergency services with specific vehicle information at the point of use, informing them about the appropriate tactical procedure
to employ for rescuing a patient. The data sheet for a specific vehicle model contains
comprehensive information with regard to rescue work on the vehicle. This involves a
representation of the vehicle indicating various components (e.g., fuel tank, battery, airbag, belt tensioners, structural reinforcements, high-voltage components and
cables), their installation position and possible additional information.
The first data sheets were included in the guidelines for rescue services from the
mid-1990s, although they did not yet have a uniform graphic design. Exacting requirements were formulated for future data sheet formats in order to permit quick and easy
use, the possibility of accessing all relevant vehicle information, updating data and the
manufacturer’s information. These formats have been agreed in cooperation with the
German Fire Protection Association (VFDB) and emergency physicians.
Germany plays a pioneering role in
comprehensive provision of information
to assist the emergency services at the
site of an accident
Since 2008, vehicle manufacturers in Germany have offered standard rescue data
sheets for specific car models. These are freely available for download from the
corresponding websites of the vehicle manufacturers. At present, there are rescue
data sheets for almost all vehicle models (cars and light commercial vehicles) sold in
Germany. At present, there are more than 1,100 rescue data sheets, and the number is
rising. This makes Germany a global pioneer in comprehensive provision of information to assist the emergency services at accident sites.
The large number of available rescue data sheets and the variety of different
powertrain variants for a model was making practical use by the fire department
increasingly difficult. In particular, this concerned the manner for keeping this data
and correctly identifying the appropriate data sheet for the vehicle in an accident.
SilverDAT FRS software means that the
latest information about the vehicle is
always available
As a result, the VDA has worked together with the Association of International Motor
Vehicle Manufacturers (VDIK) and the Federal Ministry of Transport to produce a system
whereby, at short notice, the emergency services can rapidly identify the vehicle in an
accident. Since 2013, it has been possible to identify vehicles involved in an accident by
running a license plate check with the Federal Motor Transport Authority (KBA). Based
on this, the VDA and VDIK commissioned the Deutsche Automobil Treuhand company
(DAT) to program a software package (SilverDAT FRS), which would make it possible to
correlate the vehicle data from the KBA with the corresponding rescue data sheet by
means of a database held at the rescue control centers. The database is regularly updated by DAT, meaning that the latest information about the vehicle is always available. A
first pilot phase involving five different fire departments in Germany started during the
fourth quarter of 2012.
147
The software has been available to the emergency services (rescue control centers,
fire departments) since the beginning of 2013. The large number of available rescue
data sheets and the variety of different powertrain variants for a model was making
practical use by the fire department increasingly difficult. In particular, this concerned
the manner for keeping this data and correctly identifying the appropriate data sheet
for the vehicle in an accident.
With the introduction of the DAT software (SilverDAT FRS) and the possibility of
running the license plate check with the KBA, a practical information system has been
created for the fire departments in Germany. In future, it will be possible to regard it
as an important component of technical/medical accident rescue. Many rescue data
sheets are also available in different languages, meaning that the system could be
transferred to other countries worldwide. Discussions are only just starting in many
countries regarding the necessity for vehicle-specific information, prompted by the
increasing dissemination of vehicles with alternative powertrain technologies. In
future, the DAT software should also be able to interact with the automatic emergency
call interface (eCall). This would automate the entire procedure of providing a rescue
data sheet, without the need to input a license number into a dialog box.
SilverDAT FRS software means that the
latest information about the vehicle is
always available
In parallel to the activities in Germany, the first steps towards an international standard were taken at the end of 2011 (ISO), by defining a globally uniform layout for
rescue data sheets. The VDA is actively following this work, and providing the ISO
working group with the experience that it has collected so far. A first draft of the standard will be ready in early 2014.
Information flow in number plate inquiry
New software permits rapid access to digital rescue data sheets
Assistants at the vehicle involved in an accident
Rescue data sheet is e-mailed to
the assistant’s mobile device
Car’s number plate is
transmitted via radio
Rescue data sheet is
unambiguously allocated to the
vehicle involved in an accident
Number plate is input into the
new DAT software manually
Rescue control center
Central DAT database for rescue data sheets
SilverDAT FRS
Model name is transferred online in the Federal
Motor Transport Authority (KBA) data record
Number plate is transferred online for
establishing what is the precise model
Database of the Federal Motor Transport Authority (KBA)
Source: VDA
Ve h icle safety
148
Extended Fields of View for Commercial Vehicles
Truck drivers have to rely on indirect
vision using exterior mirrors the
In particular at intersections in city centers, there are frequently situations of conflict
between trucks that are turning off and pedestrians or cyclists. There is a significantly greater risk in trucks compared to other vehicles that the driver could fail to
notice a pedestrian or cyclist fully or at all in the available field of view of the exterior mirrors. The high seat position of the truck driver means there is usually no direct
line of sight to pedestrians or cyclists standing next to the cab, or if there is one
then it is highly restricted. This means the driver must rely on indirect vision using
the exterior mirrors. The fields of view that must be covered by these are regulated
in law in UN Regulation 46.
One measure for avoiding dangerous situations when turning off is to increase the
size of the area that can be seen around the vehicle directly or indirectly. In the course
of discussions at the international committees of the UNECE, it has been decided that
the current field of view offered by mirrors mounted at a height of 2.40 m or more
on the side of the cab away from the driver should be extended by 2.50 m, to give a
width of 4.50 m. This increases the field of view that can be seen using side mirrors
by more than a factor of two. This regulation will come into force on June 30, 2014
for all new type approvals, and must be applied to all new trucks from June 30, 2015
onwards. The regulation applies to all signatory states of the 1958 agreement within
the UNECE, which includes Europe, Japan and Russia.
Alterations to the structure of crossing
areas with axes of visibility that can be
detected by all road users also contribute to avoiding accidents
However, this only represents the aspect of a solution to a problem that is related
to the vehicle technology. A critical turning-off situation cannot be avoided solely
by increasing the field of view. It is also important to make structural adaptations
to crossing areas, with clearly defined axes of visibility and installation spaces that
can be detected by all road users. Concealment of pedestrians or cyclists by street
furniture or vegetation must be avoided, as must inadequate road markings or
insufficient lighting concepts. In some cities, additional mirrors will be permanently
installed at junctions with poor visibility so that pedestrians, in particular, can be
detected more easily.
The measures taken on the vehicle and in the infrastructure can only prove effective, however, if they are also used by the driver or pedestrians in the intended way.
In spite of the increased field of view that is now specified, a critical situation might
still be unavoidable if the exterior mirrors are not set correctly, or if there is no
visibility to the side. Also, pedestrians and cyclists are obliged to pay active attention
to their surroundings, and not to infringe any regulations. Mutual understanding
between drivers, cyclists and pedestrians contributes to road safety in critical situations when visibility is a problem.
Camera monitoring systems can display
fields of view more effectively
Vehicle manufacturers are currently working on various technologies for assisting the
driver during turning-off maneuvers. Various approaches are being investigated for
sensing people standing next to the truck. At the moment, the most promising approach
concerns displaying fields of view better using camera monitoring systems, possibly
evaluating the images automatically using object recognition and warning the driver.
149
On the Way to Even Greater Safety in Road Traffic:
“Naturalistic Driving Studies” Research Project
Recording data using Naturalistic Driving Studies (NDS) makes it possible to ascertain important aspects of driving behavior in cars and commercial vehicles under real
conditions. Being able to observe many drivers in different kinds of vehicles and a
variety of situations over a long period is the major advantage of Naturalistic Driving
Studies. The planned NDS envisage several hundreds or thousands of vehicles being
equipped with sensors in order to observe the behavior of drivers under everyday
conditions over a lengthy period. Although drivers expressly grant permission for their
vehicles to be fitted with the equipment, its continuous observation is forgotten over
time and drivers behave entirely “naturally.“ The large database created with NDS
makes it possible to describe normal driving behavior as well as recording critical
events such as near-miss accidents. This means NDS is a method for researching
how accidents come about.
The Research Association of Automotive Technology (FAT) and the Federal Highway
Research Institute (BASt) are involved in several preliminary projects with NDS. In
one preliminary project, the technical and organizational feasibility of a large NDS
in Germany is being tested with some vehicles. Further preliminary work involves
the first investigative steps being taken already: the presumed distraction effect on
drivers is being surveyed taking the example of hands-free telephone use when
driving. On behalf of the FAT and BASt, researchers are continuing to work on
identifying critical driving situations. These can arise if hazardous factors, or factors
that influence performance (traffic density, lane changes, bad weather, secondary
activities, etc.), impinge on the driver and the vehicle. Only in a few cases does
the critical driving situation develop into an accident. The research results define
objective limit values from which point onwards a situation should be evaluated
as critical. Automated evaluation processes can filter through the enormous data
quantity from NDS in subsequent, extensive studies.
The insights gained from NDS will make it possible for manufacturers to derive further
technical assistance requirements for drivers, which should be offered by driver assist
systems in the future. Knowledge of typical driving behavior patterns also provides the
road traffic authorities with a basis for further improvements in the road infrastructure.
NDS can describe “normal” driving
behavior
The presumed distraction effect on
drivers is surveyed taking the example
of hands-free telephone use
Knowledge of typical driving behavior
patterns provides valuable information
for technical support of the driver and
a better road infrastructure
Ve h icle safety
150
Acoustic Perception Capability of Electric Vehicles
People can fail to hear quiet electric
vehicles in urban traffic when they are
travelling at low speed
Vehicles with electric or electric hybrid drives are extremely quiet, particularly when
travelling at low speed. They make a significant contribution to reducing noise pollution in built-up areas. However, many pedestrians orientate themselves on the basis
of familiar vehicle noises when they are using the road. This applies in particular to
people with visual impairments and blind people. These are not the only ones who
are reliant on information from exterior vehicle noise in order to interact safely with
vehicles at all times.
Electric vehicles have only very quiet noise emissions due to their powertrain. The
noise of the tires on the carriageway only becomes dominant at speeds of 20 or
30 km/h and up. As a result of this, there is a danger with electric vehicles that
people could fail to hear them, particularly when they are being driven at low speed
in urban traffic.
Effects of changed vehicle exterior noises on pedestrians are being
investigated
As a result of this, the Dresden University of Applied Sciences has been commissioned
jointly by the Research Association of Automotive Technology (FAT) and the Federal
Highway Research Institute (BASt) to investigate the affects of changed vehicle exterior
noises on pedestrians. Specialist institutes of the Dresden University of Applied Sciences have identified situations in which there can be a detrimental alteration in perception capability by pedestrians. Particular attention was paid to pedestrians with visual
impairments. To date, it has not been possible to put precise numbers on the effect of
changed vehicle noises for several of the affected driving situations.
In the test laboratory of Dresden University of Applied Sciences, the effects of various
vehicle noises on perception capability are being investigated under controlled acoustic and visual conditions. The studies are focusing on conditions in which the vehicle
is driving slowly. In several typical traffic situations, approaching and stopping vehicles
are investigated, as well as vehicles that are stationary and ready to move off. At the
same time, the influence of ambient noise is taken into account. All the tests involve
people with and without visual impairments.
Pedestrians should interact safely even
with vehicles that have alternative
powertrains
The research results will make it possible to deliver comprehensive statements about
the acoustic perception of different vehicle exterior noises. Suggestions and recommendations are derived for how pedestrians can interact safely even with vehicles that
have alternative powertrains. These suggestions are available to the companies and
standardization groups for acoustic identification of electric vehicles.
However, the acoustic perception of vehicles is a key topic not just from the research
perspective, but also with regard to legislation. As a matter of principle, the VDA is in
favor of a procedure with open technology as a means of increasing safety, especially
that of people with visual impairments. As a result, the automotive industry is working
on comprehensive traffic and pedestrian recognition, as well as algorithms to avoid
accidents in future due to vehicles not being heard. From a short-term perspective,
however, the approach involving an acoustic warning unit is practicable.
151
Multimodal measurement laboratory at Dresden University of Applied Sciences
Thus, the UN/ECE, which is binding within the EU, has already decided on recommendations for a standard design of what are referred to as sound devices, and published
this. Within the EU, fitting electric vehicles with sound devices is optional. However, the
guideline provides specifications for the noise. For example, the noise must correspond
to that of a conventional car; songs or other unnatural noises are explicitly prohibited.
The VDA supports these recommendations and has contributed significantly to
working them out. One goal is to increase safety in road traffic, while another
concerns keeping additional noise pollution in inner cities as low as possible. In line
with the UN/ECE, the VDA is of the opinion that artificial noises should remain restricted to vehicles which have exclusively electric propulsion.
The USA is currently developing its own regulations, that will be followed by the
automotive industry in many respects. For example, they contain principles according
to which people with visual impairments should be better able to estimate the speed,
direction and distance of a vehicle.
However, the VDA regards the U.S. draft as still being in need of some revision. Above
all, the current proposal would result in excessively high noise levels, which would, as
a rule, exceed the noise currently emitted by a conventional vehicle. Overall, the PDA
is in favor of a sensible, but also moderate regulation. The association will input its
expertise accordingly.
Additional noise pollution in inner cities
should be kept as low as possible
Ve h icle safety
152
Safety of Electric Vehicles
New regulations have been defined for
protecting the occupants of electric
vehicles in case of an accident
In response to the gradual launch of hybrid and electric vehicles onto global markets,
new regulations have been defined for the protection of occupants in case of an
accident, and requirements for safe operation of such vehicles. The previous content
of UN Regulation 100 has been largely revised in order to take account of the current
status of vehicle technology and electric components. One important area that had
not yet been revised in full related to the requirements for traction batteries in electric
cars. Here, the VDA worked with the Federal Ministry of Transport on revising international bodies of rules. Over the past two years, an international working group has
produced specifications for battery tests, which describe the procedure and criteria
for demonstrating the safety of traction batteries in a series of tests; these have been
integrated into UN Regulation 100, as Part 2. Particular attention was paid to the
integrity of the traction battery under an extremely wide range of loading scenarios
(avoidance of leakage, fire and/or explosion, and prevention of a casing failure).
This ensures that vehicles with new powertrain technologies always have an equally
high safety level. As a second step, a working group was established under the
auspices of the UNECE, with the task of working out a global technical regulation
(GTI) for electric vehicles with regard to all safety aspects before, during and after an
accident, as well as in general driving operation. The working group is chaired by the
USA and comprises not only the vehicle manufacturers and component suppliers,
but also representatives of the governments of Canada, China, Japan and Europe,
including the European Commission. A first draft regulation will be available in 2014
for commenting.
Information about high-voltage
components and specific electrical
instructions have been added to
rescue data sheets
Furthermore, German vehicle manufacturers have expanded their concept of rescue
data sheets for fire departments, which has already existed for many years, to
include the aspect of electric vehicles. Members of the fire department will now see
information about high-voltage components and other specific electrical instructions on the rescue data sheet. The instructions concern both information about the
installation position of high-voltage components and additional safety notices. On
the data sheets, the manufacturers explain how to identify vehicles with alternative
powertrains, how the vehicle is to be secured against rolling away, how the drive and
the high-voltage system can be deactivated, and what special features should be
noted. This topic is also being dealt with in the ISO working group on standardization
of the rescue data sheet.
A VDA project group “Recovery of motor vehicles” is working on a recommendation for safe recovery in order to familiarize not only the emergency services but also
vehicle recovery companies about how to work with electrically powered vehicles.
Attention is focused on the time window between clearing the accident location until
the point when the vehicle arrives at a workshop.
153
Driver Assist Systems for Light and Heavy Vehicles
Automatic emergency brake systems for
commercial vehicles
Modern driver assist systems can provide the drivers with effective support, particularly in critical situations. They enable drivers to remain in control of their vehicles. In its
general safety regulation (EC) No. 661/2009, the EU has defined not only regulations for
ESP in all vehicle categories and tire pressure monitoring systems for cars, but also new
regulations for advanced emergency braking systems (AEBS) and the lane departure
warning system (LDWS) for commercial vehicles. The technical requirements have
already been regulated for those vehicles (which tend to be heavy ones) in which emergency braking systems are either already available or under development.
In modern driver assist systems, the
driver always maintains control over
the vehicle
For vehicles in category N2 with a gross vehicle weight rating less than 8 metric tons
and a hydraulic service brake system, as well as for vehicles in category M2, the
requirements are to be defined by ongoing work in the UNECE up to the end of 2014.
Refer to the table below for an overview of the introduction dates.
The requirements still have to be defined for the warning times before a potential
collision (TTC, time-to-collision) and for the speed reduction with an initial speed of 80
km/h for stationary and moving target vehicles. The lack of requirements on emergency braking systems for light commercial vehicles is something that differs significantly
from heavy vehicles. Smaller commercial vehicles are more agile, and furthermore
a hydraulic service brake system needs more time to establish full pressure than a
pneumatic service brake system does. This gives drivers the opportunity to carry out
not only braking but also an avoidance maneuver when there is a danger warning
from the system. Depending on the vehicle weight, agility and brake system, an avoidance maneuver without collision may actually be more sensible than full braking in
which there is a collision in any case because the speed is not completely eliminated.
In general, the higher the vehicle speed and the more agile the vehicle, the later it
is possible to carry out an avoidance maneuver safely, whereas even panic braking
would not be able to prevent a collision.
The systems to be developed must differentiate very precisely between various requirements. On the one hand, a system must never overburden drivers with unjustified
or excessively frequent warnings. On the other hand, it must trigger a warning and/or
braking in order to reduce the severity of an accident or prevent a collision.
The automotive industry has organized test events spanning several days in order to
base these diametrically opposed requirements on measurement results, and thus
to promote the continuing development of traffic law in international committees
on the basis of facts. These tests conducted on a test site in Lower Saxony involved
various light commercial vehicles with different load levels. The objective was to find
what is referred to as the “latest steering point”: the distance from the target at which
avoidance is still possible without a collision. For this purpose, the test vehicles were
equipped with a complete suite of measurement sensors; test drivers performed avoidance maneuvers at various speeds ahead of an obstacle under permanent monitoring of the steering angle, speed and TTC.
The results obtained and additional measurements of maximum vehicle deceleration
rates led to the conclusion that it is possible to initiate an avoidance maneuver 13
meters after the last braking possibility at 80 km/h, in order to prevent a collision.
This value of 13 meters, or 0.6 seconds, indicates how difficult it is for the emergency
braking system to issue a warning at an appropriate point. It may well be that the
driver has already noticed the obstacle and is planning to drive around it. An undue
warning in such situations might well cause the driver to switch the system off, so it
would no longer offer any protection.
Drivers must not be burdened by
inappropriate or excessively frequent
warnings
Developing and tuning emergency braking assistance systems for
commercial vehicles are complicated
development tasks
Ve h icle safety
154
Interestingly, the TTC remained almost constant within the investigated speed range
from 40 to 80 km/h, irrespective of the driven speed.
Developing and tuning emergency braking assistance systems for these small
commercial vehicles are complicated development tasks. This relates to the recording and assessment of driver activities, the vehicle status, the vehicle’s dynamic
properties and its reactions. Another requirement is for the systems to be integrated
into the overall vehicle infrastructure and adjusted to various vehicle types. Adequate
lead times are required for implementation in series production in order to place safe
products on the market.
Introduction deadlines for AEBS in commercial vehicles (new types)
Vehicle category
(Brake systems/rear axle suspension systems)
M2 all brake systems and rear axle suspension systems
Introduction deadlines
New veh. types from 11/2016,
new vehs. from 11/2018
M2 with hydraulic transmission device
Requirements to be produced by
the EC by December 31, 2014
M3 with hydraulic transmission device
Requirements to be produced by
the EC by December 31, 2014
M3 with pneumatic signal and hydraulic energy
transmission device + all rear axle suspension systems
New veh. types from 11/2016,
new vehs. from 11/2018
M3 with pneumatic transmission device + all rear axle
suspension systems
New veh. types from 11/2016,
new vehs. from 11/2018
M3 with pneumatic signal and hydraulic energy
transmission + pneumatic rear axle suspension system
New veh. types from 11/2013,
new vehs. from 11/2015
M3 with pneumatic transmission device + pneumatic
rear axle suspension system
New veh. types from 11/2013,
new vehs. from 11/2015
N2 all brake systems and rear axle suspension systems
New veh. types from 11/2016,
new vehs. from 11/2018
N2 >/= 8 t with hydraulic operating system
Requirements to be produced by
EC by December 31, 2014
N2 > 8 t with pneumatic signal and hydraulic energy
transmission device + pneumatic rear axle suspension
system
New veh. types from 11/2013,
new vehs. from 11/2015
N2 > 8 t with pneumatic transmission device +
pneumatic rear axle suspension system
New veh. types from 11/2013,
new vehs. from 11/2015
N3 all brake systems and rear axle suspension systems
New veh. types from 11/2016,
new vehs. from 11/2018
N3 with pneumatic signal and hydraulic energy
transmission device + pneumatic rear axle suspension
system
New veh. types from 11/2013,
new vehs. from 11/2015
N3 with pneumatic transmission device + pneumatic
rear axle suspension system
New veh. types from 11/2013,
new vehs. from 11/2015
The following vehicles are exempt from the introduction of AEBS and LDWS:
Off-road vehicles acc. to §§ 4.2, 4.3 2007/46/EC, Appendix III, Section A, special vehicles §§ 5.7,
5.8 2007/46/EC, Appendix III, Section A, M2, M3, N2, N3 with more than 3 axles, N2 tractor vehicles with a GVWR between 3.5 t and 8 t, M2; class I or class II or class A, M3; class I or class
II or class A or articulated bus
Source: VDA
155
Protection Against Theft
Car crime has now become an international problem because of global networking.
Over the last 20 years, the theft rate has decreased by more than two thirds thanks to
continuous improvement of mechanical and electronic theft prevention measures in
vehicles and close collaboration between manufacturers and police. Since the record
in 1993 of more than 144,000 stolen vehicles, of which 60,000 were permanently
lost, it has been possible to reduce the number of thefts to below 20,000 from 2006
onwards, thanks to improved theft prevention measures. However, the methods used
by car thieves have also changed: Amateur thieves have been replaced by highly
professional, organized gangs, which specialize in particular models.
Car thefts have declined by more than
two thirds over the past 20 years
The figures for vehicles stolen in 2011 are continuing a slightly downward trend
compared to 2010. Official statistics for 2012 are not yet available, but the trend
indicates a further decline by 4 percent (the Federal Ministry of the Interior (BMI)
will publish its figures on May 15, 2013). However, the total loss amount for the
insurers rose further. The reasons for this include both rising vehicle values as well
as the trend towards stealing higher-value vehicles.
The further decline in the number of thefts is a result of continuous improvements in
theft prevention measures taken by the automotive industry, and very close cooperation with the authorities. For years now, meetings have been held regularly involving
theft protection experts from the vehicle manufacturers and the Federal Criminal Police Office (BKA). This cooperation also ensures that the latest knowledge concerning
changes to thieves’ modi operandi is divulged, as well as guaranteeing that further
protection measures can be implemented at short notice. As a result, the automotive
industry and the authorities will always keep their nose in front in the continuous
technological arms race with vehicle thieves.
Theft protection statistics
100,000
80,000
60,000
40,000
20,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Tracking quotas
Permanently lost
Source: Federal Criminal Police Office (BKA)
Protecting vehicles against theft is a
matter of priority for the German automotive industry
Networking
Martin Hyar – apprenticed export merchant, Regional Sales Manager Asia, Africa, Oceania, ThyssenKrupp Bilstein GmbH, Enneppetal
N etwor ki ng
158
Networking
Digital networking offers innumerable possibilities – many of which cannot be foreseen
at all today. Personalized vehicles with Internet access and access to their own data
and media in the data cloud are fundamentally changing the experience of driving. The
networked vehicle fits smoothly into the trend of mobile communication and remaining
in contact. In future, vehicles will be networked with one another, with the infrastructure
and with the Internet. They will become a comprehensive service provider which knows
the requirements of the driver and is ready to provide assistance.
пїј
Digital networking, and thus the exchange of information between those involved in
transport, is happening against the backdrop of urgent global challenges such as population growth and climate change; it offers the potential to meet humanity’s need for
mobility and transport, while avoiding traffic jams in spite of increased traffic volumes. It
will save resources, reduce the burden on the driver and increase road safety.
Networking is a key topic for individual mobility. It will require cooperation with
partners from information technology and government stakeholders to overcome
infrastructural and technical challenges, and create a secure legal framework for
customers and vehicle manufacturers. The VDA is supporting its members in this
innovative area, and is consistently pushing ahead with the digital revolution for all
aspects of the car.
Milestones in networking
20xx
Automated driving
2012
Lane change
improved hMi
Longitudinal guide assist
assist
2009
intelligent Speed Adaption
Road sign recognition
Flex Ray
Bluetooth
Lane departure warning
2000
DSC
(Dynamic
2008
In-car Internet
2001
Road toll gantries
2005 On board unit
Adaptive cornering light
Steer/Drive by Wire 2003
Park steer assist
Tire pressure
monitoring system
Adaptive high-beam assist
2002
STA
(traffic jam assist)
Lane change assist/
blind spot assist
2004
Active Brake Assist
Active night light assist
(Adaptive
Cruise
Control)
2010
Active Park Assist
MB Tweet Fleet
simtD
1998 ACC
2011 Ion Road App
emergency
brake assist
Introduction of Fleetboard
1970
1933
First car radio
Blaupunkt 4A75
Ari traffic radio
(electronic stabilization
program)
1987
1988
rDS
(radio Data
System)
(driver�s broadcasting information)
1996
with SMS and GPRS
Telephone
Stability
eSP
Control)
voice control
navigation 1990
1989 system
Introduction of CAN bus
1972
Digital networking will reduce the
burden on the driver and increase road
safety
Digital networking is a revolution affecting all aspects of the car and the entire transport system. Communication and information are becoming more and more important.
Exchange of information between all road users and networking with the Internet
represents a major step towards the resource and time-saving transport of the future.
eureKA ProMetheuS ProjeCt
TCS (traction control system)
1980
ABS In-car mobile phone
(anti-lock brake system)
Invention of WLAN (ALOHAnet)
A-net
Car phone
1958
Personalized vehicles with Internet
access and access to their own media
will change the driving experience
completely
VDA-MAgAzin: Vernetzung — Seite 4
Inert systems
Sensor systems
Dialog systems
ER
AN
D
I
T
VE R
TZ
NE
G
UN
M
159
System Vernetzung im Automobil, VDA
THE AUTOMOTIVE INDUSTRY AND ITS PARTNERS
Professional colleges
and universities
Administration
Politics/legislation
Network
operators and
providers
Manufacturers of
consumer and business
electronics
Other transport providers
IT companies
Partners of the automotive industry, VDA
VDA-MAGAZIN: VERNETZUNG — SEITE 3
CarIT as a Strategic Task
IT, with its future technologies such as cloud computing (access to one’s own data
and media from the data cloud), Big Data (aggregating and analyzing large quantities
of data for B2B and B2C applications) and mobile computing (permanent availability
of IT applications such as via the Internet), is becoming a driver of innovation in society and companies. A coordinated, company-wide information system is a precondition
for consistent processes in development, production, sales and customer service.
IT is finding its way into vehicles at breathtaking speed, it is becoming part of the
product. In future, a vehicle manufacturer will become a vendor of vehicles and
services relating to all aspects of mobility. Mobile Internet has been part and parcel
of many people’s lives for some time now. They no longer go online, they are online
– even in the car. The virtual personalization of vehicles, the driving sensation,
entertainment equipment and the online services available will intensify the entire
service experience. To ensure the corresponding customer retention, it is important
to combine features and services as attractive packages with sustainable business
models, and thus establish a digital brand in which security always takes priority.
The German automotive industry intends to build on its leading role in CarIT.
In future, vehicle manufacturers
will become vendors of vehicles
and services relating to all aspects
of mobility
N etwor ki ng
160
ew
ay
Protection against hackers
Ga
WLAN
USB
all
RDS
t
Fire
w
GSM
Bluetooth
Ch
ips
Infrared
Krypto
Challenge
Vehicles are increasingly open to networked applications.
Safety must not be compromised in this case.
CarIT is the key to future mobility
-
StrategieS
Sensitive areas in the vehicle are excluded from communication and only
automobile manufacturers have access to them. External services are extensively
checked before use.
Innovative CarIT, with intelligent networking of information and systems, increases
driving comfort, safety, and communication, and is the key to future mobility. It is
ideal for creating added value for users in all aspects of mobility, whether in individual
transport or in transport networks, and for reaching new target groups. Booking and
settlement functions can be personalized using services, made quickly accessible and
supplemented by infrastructural information (such as the locations of charging points
for electric vehicles or parking spaces).
The automotive industry can only exploit the potential of CarIT together with its
partners. At the same time, automobile manufacturers must make sure that they do
not lose the market to market players from outside the industry. Reliable alliances and
partnerships are essential for overcoming the challenge of networking successfully.
The added value of electronics in the
vehicle will increase significantly due to
networking
Electrification – the rise in the number of control units and software packages in
vehicles – will significantly increase the added value from electronics in the vehicle.
One significant difficulty concerns synchronizing the lengthy development cycles for
vehicle application and the significantly shorter cycles of the consumer industry. The
shorter development cycles from communication technology are not possible for the
corresponding applications in the vehicle, as a result of the extensive quality assurance and certification requirements for processors and semiconductor components
in running gear and engine control units.
161
One approach to solving this problem concerns modularization with an exact interface
description of the hardware and software modules, so that interchangeability and
updating are possible throughout the entire life cycle of the vehicle. In future, it can
be expected that software components from different suppliers will be run on one
control unit, meaning that automotive manufacturers will be faced by an even greater
proportion of integration tasks. There will have to be an expansion in the OEMs own
software development competence, because a significant proportion of brand and
product differentiation will be achieved by corresponding software functions.
Networking is leading to a rise in the amount of information that can be made
available to the driver. The challenge involves representing the complexity of the
different functions in a needs-driven and straightforward operating method. Operating concepts that are innovative and intuitive to use will form the basis for minimum
distraction of the driver. Voice and gesture control as well as head-up displays will
make it possible to provide specific content and functions.
Integrating smartphones and linking up navigation and information systems with
driver assist systems open up the vehicle to external software. This new openness could increase the risk of cybercrime – which cannot be reconciled with the
pronounced safety and security culture of the automotive industry. In view of this
situation, concepts will be worked out for the software and hardware architecture in
which the data systems for navigation, telematics and infotainment applications will
be separated from the driving-relevant systems in the vehicle electronics. Data will
be exchanged by cryptographically secured pathways – and only following successful
authorization of the communication partners. Gateways and firewalls shut off securityrelevant areas in the networked vehicle.
Increasing networking gives rise to a lot of data, the safeguarding of which with
regard to data protection legislation must be regulated. In this context, it is necessary
to answer questions relating to data protection legislation and develop technical
solutions that effectively permit data access by particular groups of people, while
excluding it for others.
Gateways and firewalls protect the
security-relevant areas in the networked
vehicle
N etwor ki ng
162
Car-to-Car/Car-to-I Communication
Intelligent car-to-car/car-to-I communication is delivering an improvement
in air quality and reduction in fuel
consumption
In-vehicle networking is going to take place in parallel and at different speeds in the
various domains of the vehicle. As a result, it will make new comfort and assistance
functions possible. Using modern sensor technologies, the vehicle can “see” and
“feel” – it will become increasingly aware of the traffic situation. For example, information available in the vehicle from previously autonomous subsystems, sensors and
actuators will be brought together and evaluated intelligently (sensor fusion). This
on-board information is supplemented with route-related information by communication between vehicles (car-to-car) or communication with the infrastructure (car-to-I).
Car-to-car/car-to-I communication is a highly promising possibility for increasing the
traffic flow through forward-looking control and thus improving air quality at the same
time as reducing fuel consumption.
The exchange of information via radio between vehicles, traffic control centers and
other information providers makes it possible to have local danger warnings, geo and
weather information such as black ice, fog or aquaplaning, roadworks information
and status messages from traffic lights and traffic signal systems. This allows warning
functions for accident avoidance and response prompts to be derived for the driver.
Protocols and messages required for these functions are currently being standardized.
This step is necessary because the effect of car-to-x systems largely depends on the
number of networked vehicles as communication partners.
The simTD research project is testing
car-to-x communication for safe
mobility of tomorrow
Numerous automobile manufacturers have agreed to create common standards
for car-to-car/car-to-I communication. The simTD research project initiated by the
VDA is shaping the safe and intelligent mobility of tomorrow through research and
testing of car-to-x communication and its applications. In 2012, realistic traffic
scenarios were carried out on an extensive test facility infrastructure around Frankfurt am Main. The VDA will continue actively to follow the activities for introduction
of car-to-x communication.
163
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When the vehicle approaches an
obstacle, the vehicle informs the
driver of this as a warning appropriate
for the situation. The warning time is
calculated based on the distance and
speed.
simTD — Safe, intelligent mobility
Test area Germany
CAR-TO-CAR
COMMUNICATION
Vehicles warn one another
about changes in the road
surface, if they have to brake
unexpectedly or if there is a
risk of both vehicles being
involved in a collision.
ROAD WEATHER WARNING
Weather data from measuring
stations and vehicles makes it
possible to recognize and
broadcast weather hazards at
an early stage.
CONTROL
CENTER
Stations
LOCAL
INFORMATION SERVICES
Local information about the
weather, events or car parks
with information for the
driver about vacant spaces.
n
ra
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dr
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LI gi on s
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a
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T r l y ge t y
e a me r ibili
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if
ROAD SIGN ASSIST
The driver is informed about valid road
signs, including variable message
signs such as speed limits and
restrictions imposed due to roadworks.
G
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E W m ic le is
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ROADWORKS
INFORMATION
The driver receives information about the length of the
roadworks, the reason for
them and the duration of the
work. In addition, the traffic
conditions and the roadworks layout are displayed
on the basis of movements
of the vehicles in front.
www.simtd.de
VDA-MAGAZIN: VERNETZUNG — SEITE 1
N etwor ki ng
164
Automated Driving
Automatic driving functions support
the driver, permitting safe and efficient
mobility
There is a need for further development
of the legal provisions relating to driver
assist systems
Networking of different sources of information in and around the vehicle permits
a further development of driver assist systems, to come closer to the vision of
accident-free driving. Human errors are the main cause of accidents. In the long
term, automated systems open up new opportunities for improving road safety.
Automated driving functions have already found their way into vehicles. They make
the task of driving simpler and support the driver in driving situations, thus making
a contribution to safe and fluid road transport.
The level of automation of the driving task can range from assistance through to
highly and fully automated driving functions – from the overtaking assistant through
to highway autopilots. As the level of automation rises, the obligation on the driver
to monitor the vehicle continuously may be partially or wholly lifted. With the highly
and fully automated driving functions, the automotive industry is aiming for in the
medium and long term, there will no longer be any need for continuous monitoring
by the driver. On the one hand, electronic driver assist systems are making enormous
progress. On the other hand, statutory and liability regulations derive from a time
when these technologies could not have been foreseen. As well as ongoing technological developments, there is thus a need to develop the statutory framework in
parallel as well. The significant consequences of such changes mean there is a need
to make a start today on creating new general conditions for automated driving so
that functions such as these can be admitted in vehicles worldwide in future. The VDA
is supporting its members in their activities to develop the legal framework further.
Technical Specifications and
Standardization
Sevim Güler – machine operator Cylinder-Head Gaskets division, ElringKlinger AG, Dettingen/Erms
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
168
Worldwide Harmonized Light-duty Test Procedure
(WLTP) – The New Emissions Cycle
Since the start of the 1990s, the introduction of the standard European exhaust emissions
regulations has meant that vehicle emissions are measured on the basis of a standard
driving cycle (the New European Driving Cycle NEDC) in Europe. This was developed
by the EU Commission to provide consumers and politicians in Europe with a standard
scale. In addition to measuring classic emissions the driving cycle is also used to determine emissions of CO2 and fuel consumption.
The automotive industry has
significantly supported and pressed
ahead with development of a new
test procedure
The new WLTP cycle has significantly
more acceleration and braking
procedures
The NEDC has proven its worth over many years as a standard binding basis for the
comparison of different vehicles or model generations. However, it is being increasingly
accused of no longer being representative of the average vehicle or driving habits of
a driver. As a result, the member states of the 1998 UN/ECE Agreement (including all
European states, Japan, USA, China, Russia, India and others) have decided to develop a
new test procedure under the auspices of the UN/ECE, which should provide a representative pattern of the actual driving properties of a vehicle worldwide. The automotive
industry has significantly supported and pressed ahead with this initiative.
The new WLTP cycle (Worldwide Harmonized Light-duty Test Procedure) has been
developed on the basis of driving data collected worldwide, and covers driving situations from urban traffic through to highway driving. The cycle is significantly more
dynamic than the NEDC – it has many more acceleration and braking procedures
than its predecessor.
In addition to the actual driving profile, the measurement procedure is also to be standardized on an international basis and adjusted to current automotive technology. This
includes a wide range of subjects including, e.g., the question of the temperature at
which a vehicle is measured or how the correct tire pressure should be defined.
An identical vehicle must produce the
same test results at any time and in any
part of the world
The cycle and basic structure of the
measurement procedure should be
agreed by the end of 2013
Here too, the goal is to reflect reality as accurately as possible, largely reduce possible
variances and keep the test as straightforward as possible. The aim – as with the NEDC –
is to ensure that the measuring process is reproducible and compliant all over the world:
an identical vehicle must produce the same test results at any time and in any part of
the world as long as the correct measurement procedure is used. For this purpose, the
procedure must be able to measure the fuel consumption and emissions of a vehicle
reliably and representatively. Experts in the automotive industry are thus working closely
with the regulatory authorities of the responsible member states, and are supporting this
regulation work to the best of their ability.
The development of the first step in the new driving cycle is scheduled to be completed
by the end of 2013. It is expected that the cycle and the basic structure of the measurement procedure will be able to be approved by then. However, the detailed work – such
as special treatment of electric and hybrid vehicles – will probably take longer. Not least
for these reasons, the VDA regards as unrealistic the objective stated by the DG Enterprise for binding introduction of the WLTP in 2017/2018. This is because in addition to
actually completing the cycle, it will also be necessary to define and observe the precise
transitional regulations.
In all probability, the WLTP will report higher fuel consumption compared to the NEDC,
due to its higher dynamics. This aspect must be given painstaking consideration with
regard to introducing the WLTP into European legislation.
The target CO2 values for the European fleet are based on the previous cycle. These
target values must not be negatively influenced by introduction of the WLTP. As a result,
the changeover to the new cycle must go hand in hand with a corresponding lead-in and
transitional regulations. In parallel, the applicable emissions, labeling and CO2 legislation
must be considered.
169
The Main Inspection
In July 2012, the EU Commission presented the “Road Safety” package. This consists
of topics relating to regular traffic and operating safety testing (main inspection and
exhaust analysis), roadside inspection for commercial vehicles as well as delivery
of technical information on vehicle registration. Among other things, it picks up the
objective formulated in the policy orientations on road safety 2011–2020, namely to
cut road deaths by 50 percent. In addition, road traffic emissions caused by inadequate maintenance of vehicles should be reduced. The presented draft regulation is intended to replace EC Directive 2009/40/EC, most recently amended by Directive 2010/48/
EC. The objective is to create a common European area for traffic and operating safety
monitoring that is based on harmonized test constituents, equipment, qualification of
test personnel and evaluation of defects.
The objective of the “Road Safety”
package is to create a uniform European space for traffic and operating
safety monitoring
Significant modifications in this draft are:
• Expansion/harmonization of the minimum requirements for defect categorizations
• Equipment regulations for the test locations
• Minimum requirements on contents and methods
• Expansion of the scope of application
• Expansion to the inspection of safety-relevant electronically controlled
vehicle systems
• Making test intervals dynamic.
The present concept of the EU Commission is currently being formulated with the
member states and the EU Parliament as part of the European legislative process.
The majority of intended changes to the main inspection and exhaust analysis have
already been implemented in Germany some time ago. The 47th amending regulation
to the German road traffic licensing regulation (StVZO) came into force in Germany
on July 1, 2012. This adapts the type and scope of the main inspection to match the
status of vehicle technology. In future, the road safety and environmentally relevant
systems will be checked via the electronic interface in vehicles to make sure they are
functioning correctly. In many areas, the regulations applicable in Germany go beyond
the prescribed minimum requirements in the current draft from the EU Commission.
The majority of changes to the
main inspection have already
been implemented in Germany
Priority must be given to harmonization of the test contents and delivery of technical
information and test specifications in Europe, rather than local tightening-up of the
test requirements in individual member states. This should be oriented towards the
status established in Germany.
The obligation to deliver technical information for the road safety and operating safety
test envisaged by the EU Commission in the present draft law goes beyond the national and international publications currently in place today on delivery and provision of
repair and maintenance information within the scope of Euro 5/6 (715/2007/EC ff.) as
well as Euro VI (595/2009/EC ff.) or В§29 of the German road traffic licensing regulation
(StVZO), appendix VIIIa.
The proposed scope of delivery will not provide any benefit for periodic, technical
monitoring of vehicles. As a result, the automotive industry rejects the intended
delivery obligation.
The automotive industry rejects the
intended delivery obligation
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
170
New Version of the Limit Values for Noise Emissions
The German automotive industry has
been able to reduce the noise level of
its vehicles steadily
Between 1970 and 1995, automobile manufacturers significantly reduced the noise
emissions from vehicles: In new vehicles, noise emissions were reduced by eight decibels. And even without new more stringent limit values, the German motor industry
continued to reduce the noise generated by their vehicles in the following years.
At the end of 2011, the EU Commission published its proposal for regulating vehicle
noise emissions. Discussions in the council and parliament extended over the entire
course of 2012. On February 6, 2013, the EU Parliament voted on the noise legislation
following lengthy discussions. The council decision is still pending.
The core of the noise legislation process concerns changing to a new type testing
procedure. The measuring method applicable to date basically corresponded to
full-load acceleration at 50 km/h. Although this is very demanding for the automotive
industry, it does not represent a typical operating condition in sensitive urban areas.
More moderate accelerations are typical for urban driving.
171
In order to achieve a better correlation between reducing the limit value and the
situation with regard to received noise, a new and more representative measuring
process was developed and approved under the auspices of the UN/ECE in close
cooperation with the ISO (International Organization for Standardization). The
German automotive industry actively supported this development, and welcomes
the change to this new process.
The German automotive industry
welcomes the change to a new, more
representative measuring process
Furthermore, the EU Parliament has undertaken a thorough revision of the vehicle
categories on which the regulation is based. Thus, different limit values used to be
defined for various vehicle categories, because a truck cannot be compared to a
passenger car, for example. Even within a vehicle category, the vehicle concepts
can range from a medium-duty delivery truck through to a long-distance truck, for
example. These concepts are so varied that the EU Parliament defined and passed
sensibly segregated sub-categories of the vehicle categories. The VDA welcomes
this revision of the vehicle categories, because some of the former vehicle categories were more than 25 years old and no longer corresponded to the current market
and today’s state of the art.
The European Parliament has defined new limit values for each individual vehicle
category. The new limit values are calibrated to take account of the development
periods for new vehicle generations. The limit values of the EU Parliament are highly
challenging for automotive companies, while not overstepping the mark in terms
of what is economically bearable. As a result, the VDA welcomes the introduction
of new, demanding noise limit values in principle and respects the decision of the
EU Parliament in this regard. Accordingly, the VDA is in favor of rapid agreement
between the council and parliament, and is already taking measures to fall into line
with the coming legislation.
Despite all the discussion about primary vehicle noise, however, it should still be
mentioned that measures must also be taken outside the vehicle for effective noise
reduction.
• Intelligent traffic control and balancing traffic levels
• Low-noise modern road surfaces to reduce the noise of tires on the road
• Passive measures such as noise abatement walls and sound-insulated windows
• “Quiet” rails for railways and trams
• Support for electromobility
• Monitoring vehicles to ensure they are in good condition
• Controls on illegal exhaust systems
It will only be possible to make significant reductions in noise levels at high density
traffic locations if all these noise reduction measures are used in combination.
New limit values have been defined for
each vehicle category
The noise level can only be significantly
reduced by combining all noise reduction possibilities
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
172
Decision by the EU Parliament on new limit values
M
M1
M2
M3
N
N1
N2
N3
Vehicle used for the carriage of passengers
6 years after EiF
New Vehicle Types
Limit dB(A)
8 years after EiF
New Vehicle Registration
Limit dB(A)
no. of seats ≤ 9; ≤ 125 kW/ton
68
68
no. of seats ≤ 9; ≤ 125 kW/ton < power to mass ratio ≤ 150 kW/ton
70
70
no of seats ≤ 9; power to mass ratio ≤ 150 kW/ton
73
73
no. of seat ≤ 4 incl driver; PMR > 200; R-point of the driver seat < 450 mm from
ground
74
74
no. of seat > 9; mass ≤ 2.5 tons
69
69
no. of seat > 9; 2.5 tons < mass ≤ 3.5 tons
72
72
no. of seat > 9; 3.5 tons < mass ≤ 5 tons
75
75
no. of seat > 9; mass > 5 tons; rated engine power ≤ 250 kW
74
74
no. of seats > 9; mass > 5 tons; 180 kW < rated engine power ≤ 250 kW
77
77
no. of seats > 9; mass > 5 tons; rated engine power ≤ 250 kW
78
78
Vehicle used for the carriage of goods
6 years after EiF
New Vehicle Types
Limit dB(A)
8 years after EiF
New Vehicle Registration
Limit dB(A)
mass < 2.5 tons
69
69
2.5 tons < mass < 2.5 tons
71
71
3.5 tons < mass ≤ 12 tons; rated engine power < 150 kW
75
75
3.5 tons < mass ≤ 12 tons; rated engine power > 150 kW
76
76
mass > 12 tons; rated engine power ≤ 180 kW
77
77
mass > 12 tons; 180 < rated engine power > 250 kW
79
79
mass > 12 tons; rated engine power > 250 kW
81
81
Source: www.europarl.europa.eu
173
EC Type Approval for Motor Vehicles
The European Union is continuing its efforts to guarantee the highest level of safety
for all road users, which explains why it is undertaking a new version of the EC
type approval system for motor vehicles. Directive 2007/46/EC has adopted most of
the regulations of Directive 70/156/EEC in a revised form, although it does include
completely new concepts and obligations.
The EU is making a new version of
the EC type approval system for motor
vehicles
As a result, this system is being extended to all motor vehicle classes that are designed and built in one or more stages for participation in road traffic. Also, systems,
components and independent technical units are capable of receiving an approval,
and are regulated within the scope of the type approval. With the revision of the
directive, various items of equipment are introduced on a mandatory basis in order to
improve safety in road traffic: for example, the rear-view mirror with a wider field of
view, daytime running lights, improved lateral protection and spray guards.
An EC type approval for systems, components, independent technical units and
vehicles applies throughout the entire European Economic Area. The holders of EC
type approvals have the advantage that their products can be marketed in all member
states without having to undergo a further national approval process there. To ensure
a smooth process, the European approval authorities coordinate with one another
regarding all issued EC and ECE approvals.
Currently three so-called framework directives describe the procedure for EC type
approval and the EC operating license for specific vehicles:
a) Directive 2007/46/EC, which creates a framework for approval of motor vehicles
and their trailers, as well as systems, components and independent technical units
(previously 70/156/EEC on type approval for motor vehicles and their trailers)
b) Directive 2002/24/EC (previously 92/61/EEC) on type approval for motor vehicles
with two or three wheels
c) Directive 2003/37/EC (previously 74/150/EEC) on type approval for agricultural and
forestry tractors
The present draft 2007/46/EEC of the EU Commission is currently being formulated
with the member states and the EU Parliament as part of the European legislative
process. Also, rules for market monitoring from the two-wheeled vehicles directive
should be included in the next revision.
The question arises here as to why market monitoring is additionally required for
vehicles that are already adequately monitored in the form of the type approval
2007/46/EC with main inspection including exhaust analysis, intermediate inspection
and roadside inspection for commercial vehicles. Market monitoring is regulated by
Regulation 765/2008 and, within the European Union, represents the legal framework for community market monitoring and control of products introduced into the
common market.
Market monitoring is intended to ensure that products that could endanger the health
or safety of users, or products that do not comply with the harmonization legislation
applicable within the European Union, are withdrawn from the market, or else that
their introduction into the market is prohibited or restricted. Originally, tire imports
from third countries were the trigger for market monitoring.
The EC type approval applies throughout the European Economic Area
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
174
GSR: General Safety Regulation
A safety regulation on the type approval of motor vehicles has also been
introduced with regard to their general
safety
In parallel to the EU type approval, the EU Commission has introduced the General Safety Regulation (GSR) concerning the type approval of motor vehicles, motor
vehicle trailers and of systems, components and independents technical units for
these vehicles with regard to their general safety. The regulatory character gives the
commission the opportunity of installing laws directly in the member states. In addition, the following technical matters are regulated in this individual regulation on the
type approval 2007/46/EC:
• Limit values for CO2 emissions
• Euro 5 and Euro 6, and access to repair and maintenance information
• Tire rolling noise
• Emergency braking assistance systems
• Introduction of electronic driving dynamics control systems
• Lane departure warning systems
International Whole Vehicle Type Approval
The type approval system can currently
be used for the 27 member states of
the European Union
The type approval system exists exclusively at EU level with its EC directives and EC
regulations, and can thus be applied to the 27 member states of the European Union.
Switzerland and Turkey have agreements with the European Union recognizing the
EU type approval, although they themselves cannot issue any approvals within the
framework of the EU type approval.
Consequently, work is underway on a similar system at ECE level: type approval on
ECE basis, referred to as I-WVTA (International Whole Vehicle Type Approval). Initially,
experts from Europe, Japan and Russia are working together to prepare the ground
for a type approval on ECE basis, which will be capable of phasing out the EU type
approval in the long term. The number of states using this will then be significantly
greater if all ECE states accede to the regulation. In the long term, this is also intended
for states such as India, China, Thailand and the countries of South America, which
are to be granted certain simplifications as a first step with the application of older
ECE standards, in order to provide an incentive for them to sign the ECE.
As the first step, it is expected that the EU with its 27 member states, and Japan, will
join the new regulation. The VDA expects to see a functioning system within 5 years at
the earliest, in order to allow the administrative hurdles in the states using the regulation to be sorted out. A first draft is to be presented to ECE WP.29 in 2013.
175
Standardization, Work of the Materials Council
New materials as the driver for innovations in
automobile manufacture
Requirements are placed on the automotive industry from a variety of different areas.
For example, it is necessary to reduce pollution emissions and keep CO2 emissions
low during operation and manufacture. Automobile buyers are interested in safe,
individual mobility, which is characterized by quality, safety, comfort and design. The
product should also be capable of achieving high mileages, while offering value for
money and maintaining its value.
The automobile manufacturers’ approaches to squaring these requirements involve
permanent technical innovations, lightweight construction, efficient manufacturing
processes and powertrains as well as the use of renewable raw materials and recycling. New materials technology can demonstrate significant progress here. The more
exacting requirements can be met by consistent use of high and ultra-high-strength
steels, alloys and high-performance ceramic materials. Polymers and new coatings,
friction linings and lubricants also help, as do high-quality and easy-care services.
Innovative, non-destructive testing processes and material localizations are used in
manufacture and production.
The VDA Materials council is a body that is ready to meet these requirements. Integration of the suppliers and manufacturers involved allows several VDA recommendations to be produced every year on pre-competitive standardization of materials
as well as manufacturing and testing processes. At present, there are nine working
groups under the council. These in turn are composed of 32 project groups at present,
which look after specific issues of materials science.
Every year, various VDA recommendations are produced for standardizing
materials as well as for manufacturing
and testing processes
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
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Streamlining testing methods should
reduce the time and cost of approval
processes
The VDA Materials council deals with the standardization of testing methods and
material specifications, with the objective of reducing the time and cost of testing and
approval processes. Technical guidelines and recommendations are worked out in
consultation between vehicle manufacturers, suppliers of systems and components as
well as material manufacturers. The Materials council coordinates cooperative efforts
on national and international standardization proposals, as well as coordinating technical legislation and regulations. In addition, international standards are specified for
applicability to the German automotive industry by means of VDA recommendations.
In the opposite direction, however, existing standards are also specifically incorporated into international standardization.
VDA recommendations are freely available and have a recommendatory character.
They offer cross-company orientation and take account of the level of standardization
and state of the art at the time of each particular edition. With the increasing dissemination of alternative fuels and additives, it became necessary to take these into
account when testing materials in motor vehicles. In August 2012, VDA Recommendation 266-100 “Material testing in fuels” was published. The test process defined in the
VDA recommendation is intended to provide information about changes to thermoplastics and elastomers due to the effect of test fuels (FAM B acc. to DIN 51604-B, B0
and B20SME), which have a relatively aggressive effect upon the material samples.
VDA Materials Council
WG Elastomers
PG Revision VDA 67
PG Blow By
PG DIN 73359
PG AdBlue
PG Hose line systems
PG Change management
PG Gas hoses
WG Constituents
WG Interior emissions
PG Odor evaluation — revision VDA 270
PG ISO 12219 — component chamber
WG Leather, textile, plastic webs
PG Synthetic leather breakage
PG Textile
PG Leather (large group)
PG Leather (small group)
PG Plastic web articles
PG Steering wheel leather VDA 230-221 (formerly LV111)
Ad-hoc WG Material data format
177
A selection of test criteria is proposed to the user, enabling the user to identify materials
that are suitable for the application purpose. The VDA recommendation is thus in line
with the principle of reducing the number of possible tests. It can be used for a suitability test as well as comparison studies. In suitability tests (quality assessment), tests are
performed on various plastics that are being considered for an application. In comparison studies (quality assurance), tests are performed on various delivery batches of a
particular plastic quality. The tests are normally performed with standard test specimens
that are described in detail. The test can also be performed on finished parts subject
to consideration for the influence of the test specimen design (e.g., thickness, volume,
form factor) and the composition of the test specimen. Test comparisons can only ever
be made on test specimens of the same type.
The number of possible tests should be
reduced
VDA 266-100 does not yet take account of any tests on thermoplastic elastomers,
although these and other fuels of the future (e.g., hydrogen and also electrolytes
from traction batteries of electric vehicles) are to be covered by subsequent recommendations.
VDA publications can be obtained at the following link:
http://www.vda.de/de/publikationen/index.html
VDA Materials Council
WG Metals
PG Fine sheet
WT FeMnX
WT Global standard
WT Hydrogen embrittlement
PG Mechanical fasteners
WT High-strength fasteners
WT Harmonization of torque preload force testing
PG Purity standard (EN 10247)
PG Alloys
PG Forming lubricants
WG Surface technology
PG Fuel corrosion
PG Influence of road grit corrosion
PG Korrago 2012
WG Polymers
PG Resistance to cream
PG Scratch resistance of high-gloss surfaces
WG Non-destructive testing
PG Computer tomography
PG Standardization topics
WG Material laboratory evaluation
Source: VDA
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
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Standardization, RFID Identification of Prototypes
The use of RFID is contributing to
quality assurance in the development
process
Prototypes play a central role in the development of new vehicles, in order to test the
function of the parts and engines and bring them to series production readiness. It is
necessary to produce extensive documentation for each component. In addition, parts
that are undergoing testing often need to be definitively identifiable. They are given
their own serial number for this purpose. To date, this information has been communicated and handled involving significant manual complexity.
One approach for automation is to use radio-frequency technology for identifying
components (RFID), with 2-D barcode labels as an alternative or a supplement.
Prototype parts identified with RFID transponders can be definitively identified from
their production at the supplier through sample inspection and on to assembly in test
vehicles as well as during their testing; this allows them to be tracked with a high level
of automation. In this way, the use of RFID is contributing to quality assurance in the
development process.
VDA Recommendation 5509 defines binding RFID data structures for
unique identification of prototype parts
The first version of VDA Recommendation 5509, published at the start of 2012, describes the process of RFID use and defines binding RFID data structures for unique
identification of prototype parts and their tracking in the course of component and
vehicle testing. At the same time, it explains the use of international standards and
their implementation in the automotive industry.
A second phase of the project dealt with the use of 2-D barcodes as well as pathways
for automated data transmission. 2-D barcodes make it possible to include suppliers
that do not yet have the technical preconditions for using RFID technology.
Each of the components identified with a serial number is associated with extensive information that must be exchanged between manufacturers and customers. As
a result, the working group developed a harmonized catalog of information that is
required by the vehicle manufacturers and regularly requested. This catalog has been
implemented in a data structure, which can be exchanged between the partners involved in an automated way.
Identifiers allow prototype parts to be
identified irrespective of technology
Version 2 of the recommendation “AutoID/RFID use and data transfer for tracking
components in vehicle development” was approved at the end of 2012, and addresses
the standardized use of the data matrix code – irrespective of whether RFID transponders or data matrix codes are used for definitive component identification: VDAcompliant identifiers have the same structure, and thus permit prototype parts to be
identified irrespective of the technology.
Furthermore, the revised version of the recommended electronic data exchange
format offers the possibility of automating the communication of prototype-related
data to a large extent, and storing the information electronically in databases. With
the expansion of VDA Recommendation 5509, the “Glass prototype” working group
is closing an important loophole with regard to definitive intercompany identification
of prototype parts and component-specific data exchange within the automotive
development process.
179
Standardization in Electromobility
Safety of electric vehicles
The new project “ISO 17409 for an international standard” defines the safety requirements for the cable-based charging procedure of electric vehicles. Work on this
project has been pushed ahead diligently and ought to be completed during 2013.
This standard defines, above all, the safety requirements in the vehicle, and is closely
related to international standard IEC 61851 for the construction and operation of
charging stations. IEC 61851 consists of several parts and, in future, together with ISO
17409, will cover all the necessary requirements of safety in cable-based charging of
electric vehicles. Both packages of standards deal with both DC and AC charging.
The international package of standards ISO 6469 “Electrically propelled road vehicles
– Safety specifications” will be expanded by a fourth part. This deals with the electrical
safety of vehicles with electrical drive systems following an accident. The work on ISO
6469-4 should also be completed in 2013. The standard defines the necessary measures for protecting people against electric shock if the vehicle has been damaged in
an accident. It covers all forms of traction – from battery electric vehicles and hybrid
vehicles through to vehicles with fuel cells.
IEC 61851 will cover all the requirements for safety during cable-based
charging of electric vehicles
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
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Lithium-ion batteries
ISO 12405 is currently being expanded
Definitions for the standardized testing of battery systems are made in standard ISO
12405 “Electrically propelled road vehicles – Test specification for lithium-ion traction battery packs and systems.” This package of standards is also being expanded at
present. The new part of this standard defines minimum safety requirements for use in
the electric vehicle. Parts 1 and 2 of this package of standards should make it possible
to compare and assess quality and performance by defining uniform tests and test criteria, while the new part 3 defines safety criteria that must be complied with.
On the basis of the initial German standard drafted by the Automotive Engineering
Standards Committee of the VDA (DIN Spec 91252), it has recently been possible to
publish an international specification for a designation system and for dimensions of
lithium-ion cells. The specification (ISO PAS 16898) should ensure the interchangeability of lithium-ion cells for use in traction batteries. This should establish an important precondition for the hoped-for reduction in cell prices by enabling competition
between the cell manufacturers. The specification will not include any definitions
that affect the technological development of the cell design and the cell chemistry.
However, it will indicate which cell dimensions will be used by the motor industry in
the long-term future and in large quantities.
Cooperation with Chinese standardization
experts
Chinese standards should be harmonized with international standards
China is one of the most important markets for the German automotive industry. The
cooperation with Chinese standardization experts promoted by the Automotive Engineering Standards Committee of the VDA is concerned, above all, with harmonizing
Chinese standards with international ones. The bilateral discussions between experts
are focusing on the standards for electromobility. The objective is to be able to sell
vehicles worldwide without requiring major adaptations to take account of national
deviations from international standards. In four defined working groups, experts from
the German and Chinese automotive industries are exchanging views on the requirements for safety in batteries and electric vehicles, definition of the charging interface
and communication between vehicles and charging stations. Possible normative
requirements are discussed in this process. Assuming that Germany and China are
able to work out a common standpoint, they will promote this internationally together.
German standardization roadmap
The Chinese version of the standardization roadmap has been passed on to
the Chinese Ministry of Economics
The Automotive Engineering Standards Committee of the VDA is significantly involved
in working out the German standardization roadmap, which was published for the first
time by working group 4 of the National Electromobility Platform in 2010. The second,
revised version appeared in early 2012, and was also published in English during the
course of the year. A Chinese version, produced with the help of the German Federal
Ministry of Economics and Technology, has been passed on to the Chinese Ministry of
Economics. It will now form the basis for a similar work plan, which Chinese standardization experts will be preparing together with their German counterparts.
181
Electronic Systems for Indirect Vision
Electrical systems as replacement for mirrors in
the vehicle in order to improve vision in the dark
At present, measures are afoot above all in legislation for replacing conventional exterior
and rear-view mirrors in cars and commercial vehicles by electronic systems. A principal
reason for these activities concerns reducing CO2 emissions. Conventional exterior
mirrors have a negative effect on the cW value of vehicles. Due to their size, however,
cameras could be aerodynamically integrated into the vehicle, thereby reducing the
driving resistance, which has a major effect on consumption. Another important reason
is the improvement in indirect vision when driving at night or in the dark. An improvement in vision is guaranteed primarily by the camera’s ability to amplify residual light.
One disadvantage of camera-based systems is the availability of the field of vision to the
rear. Conventional mirrors are always active – electronic systems, on the other hand, can
generally only be used if the vehicle in question is operating.
Conventional exterior and rear-view
mirrors in cars and commercial vehicles
should be replaced by electronic
systems
Electronic systems for indirect vision
are not always active
For this reason, there are exacting requirements on system availability and safety,
alongside the basic requirements such as:
• Definition of the field of vision to the rear,
• Image magnification/angular resolutions
• Luminance and contrast
• Image quality and ergonomics in the vehicle
• Dynamic requirements (display of moving images/distances)
• Disruptions (glare, bad weather, etc.)
These factors must be confirmed in studies regarding functional safety (such as by
applying ISO 26262).
One example: a car driver has parked his vehicle after driving, but remains sitting
in it for a few minutes. When he finally gets out, he should have the opportunity to
observe the flow of traffic behind him. How long must the camera monitor system
remain available?
Vehicle manufacturers need to investigate scenarios such as these in cooperation
with the system supplier. The legislature has transferred tasks relating to defining
requirements to the standardization bodies. The “Working Party on General Safety”
(GRSG), a sub-area of UN-ECE WP.29 [1] with responsibility for regulations relating
to general safety-relevant topics in vehicles, defines guidelines including those
for “devices for indirect vision” in ECE-R46. At the beginning of 2009, an informal working group was established under the GRSG for “camera-based monitor
systems.” This working group, the IGCMS, has been working on expanding the
ECE-R46 for camera-based monitor systems.
The “Working Party on General Safety”
(GRSG) is defining the guidelines for
“devices for indirect vision”
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
182
In 2010, this working group presented a corresponding proposal for expanding the
ECE-R46 to the GRSG and, at the same time, made the recommendation that all
requirements for camera monitor systems (CMS) should be defined in an ISO standard. In 2010, the GRSG was tasked by the ISO with standardizing electronic systems
for indirect vision.
In parallel to the activities in the ISO, the “Innovation with Norms and Standards”
(INS) area of DIN approved a project to define optical requirements and test processes for camera monitor systems in vehicles [2]. Results from this INS project will be
included in the international standard (ISO 16505). The INS project was completed at
the end of 2012.
What requirements must be imposed on a
camera-based system?
ISO 16505 is currently being developed in the ISO working group, and is shortly to
be published as a draft international standard (DIS). It takes account of the following
overarching requirements:
If possible, no new requirements should be defined in relation to current guidelines
for a camera monitor system (for example, adoption of the current field of vision in
the vehicle as defined in ECE-R46, see illustration). The defined field of vision categories I–IV (according to ECE-R46) must be taken into account in the standard.
Minimum requirements are defined for the system performance, ergonomics and
safety of a camera monitor system, and the system must be defined independently
from the technology.
Rear field of vision from a vehicle
Front passenger side:
field of vision onto the carriageway
4m
4m
Driver side:
field of vision onto the carriageway
Eye point
20 m
Source: Presentation by the Mekra Lang company on EU directives and view of vision classes
183
In the following table, the individual fields of vision according to ECE-R46 are allocated to the corresponding vehicle categories:
Fields of vision
Mirror type and vehicle category/
categories
Category I
Rear-view mirror (for vehicle category M1)
Category II
Rear-view mirror (for vehicle category M1)
Category III
Main exterior mirror (for vehicle categories M1,
M2, M3, N1 and N2)
Category IV
Wide-angle mirror (requirement for the
passenger side of vehicle categories N2 and N3)
Category V
Close proximity mirror (on the passenger
side for vehicle categories N2 and N3 above
7.5 metric tons)
Category VI
Front mirror/camera (for vehicle categories N2
and N3 above 7.5 metric tons)
Category VII
Main exterior mirror (for enclosed two or threewheeled vehicles)
For the carriage of passengers
For the carriage of goods
M1 Vehicles comprising no more than
eight seats in addition to the driver’s seat
N1 Vehicles having a maximum mass not
exceeding 3.5 metric tons
M2 Vehicles comprising more than eight
seats in addition to the driver�s seat, and
having a maximum mass not exceeding 5
metric tons
N2 Vehicles having a maximum mass exceeding
3.5 metric tons but not exceeding 12 metric
tons
M3 Vehicles comprising more than eight
seats in addition to the driver�s seat, and
having a maximum mass exceeding 5
metric tons
N3 Vehicles having a maximum mass exceeding
12 metric tons
Source: Presentation by the Mekra Lang company on EU directives and view of vision classes
The legislation already includes definitions or approvals for mirror categories V and
VI, as a result of which these have not been considered in ISO 16505. Requirements
for mirror category VII will not be considered in the first draft of the standard either
at present.
Links regarding this topic:
[1] http://www.unece.org/trans/main/wp29/meeting_docs_grsg.html
[2] http://www.ins.din.de/cmd?level=tpl-artikel&menuid=52986&cmsareaid=52986&c
msrubid=159227&menurubricid=159227&cmstextid=139324&3&languageid=de
[3] http://www.mekra-lang.com/fileadmin/upload_images/FE_images/PRODUKTE/
EU-Umruestung/EURichtlinienSichtfeldklassen.pdf
T e c h n i c a l s p e c i f i c at i o n s a n d s ta n da r d i z at i o n
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The Digital Tachograph
Analog tachographs are being phased
out by a digital system
All vehicles newly registered in the EU since May 1, 2006 and used for commercial
purposes, including towed vehicles, in excess of 3.5 metric tons gross vehicle weight
rating, and buses with more than nine seats, must be equipped with the digital tachograph (DTCO). As a result, analog tachographs with their recording discs are being
replaced by a digital system.
A digital tachograph consists of two independent speed sensors and a vehicle unit.
The equipment makes it possible to record, store, display and output data relating
to the driver’s activities. The driver’s chip card stores the relevant data for 28 days,
while the mass memory in the vehicle’s tachograph has a 365-day memory. Monitoring authorities, operators and workshops can read out the data intended for them
from the devices.
The regulations governing the tachographs as well as time at the wheel and rest times
fall within the responsibility of the European Parliament and the European Council,
which pass legislation on the basis of proposals by the EU Commission. The corresponding contents are implemented in regulations, because these apply directly and
must be implemented by all member states.
The tachographs are not suitable for
installation in passenger cars in their
current form
Regulation (EEC) no. 3821/85 of the council on recording equipment in road transport
and Regulation (EEC) no. 561/2006 of the European Parliament and of the council
on the harmonization of certain social legislation relating to road transport are being
revised in the course of legal developments.
These draft regulations contain suggestions for amendments that cannot be implemented under the given technical or economic conditions, and are thus regarded
critically by the automotive industry.
Among other things, there is a provision for the scope of application of mandatory
tachograph use to be extended to vehicles with a gross vehicle weight rating of 2.8
metric tons or more. This would affect almost every passenger car towing a trailer,
such as is used by small companies in particular. The activities of such companies
only fall within the scope of application of Regulation (EC) no. 561/2006 under exceptional circumstances. It should be noted that the tachographs have been specified
and developed for heavy commercial vehicles and buses, and are not suitable in their
current form for installation in passenger cars in accordance with the law. New developments can only be implemented for newly type-tested vehicles with significantly
longer lead times than proposed in the draft regulation by the European Parliament.
Furthermore, there is a need for clear differentiation, which only includes commercially used vehicles.
The draft regulation contains provision for a weight sensor to be fitted in the vehicle in order to record loading and unloading of the vehicle. This general installation
requirement cannot be implemented due to technical limits of the system, since only
a subset of the affected vehicles, semitrailers or trailers meet the necessary technical
conditions for installation of the required weight sensors.
185
The proposed general conversion requirement for all vehicles on the market by 2020
would require a conversion that can only be achieved with significant complexity, and
is not economically justifiable. Implementing the required technical expansions (second
independent signal for movement detection, connection to GNSS, communication
module for remote monitoring, ITS interface, weight sensor) as well as the requirements
for operation from the driver’s seat require in-depth technical integration of the tachograph into the vehicle architecture.
The proposed mandatory conversion
would require significant complexity to
implement
In general, requirements about installation locations can only relate to vehicles that
are newly typed-tested after 2020. In addition, exceptions are unavoidable where
installation of a tachograph would typically not be expected. This applies in particular to passenger cars, vans and retrofitting imported vehicles from countries without
mandatory tachograph usage.
The introduction scenario envisaged in the draft, according to which vehicles would
exclusively be allowed to be fitted with the new tachograph within only 24 months
after publication of the technical requirements on the tachographs, is entirely unrealistic and impractical from the perspective of vehicle and equipment manufacturers.
The lead time between publication of the specification and mandatory installation
should be at least 42 months.
The EU Parliament intends for the type approval of devices to be withdrawn if it
becomes apparent that they can be manipulated. This would mean the affected
tachographs could no longer be fitted. However, vehicle manufacturers cannot change
suppliers willy-nilly. This would entail stopping vehicle production for a significant
time – an unsupportable financial risk for tachograph and vehicle manufacturers alike.
With regard to networking of devices, functions and added-value services, the requirements for an open interface is to be welcomed. However, a prescribed link-up such
as to eCall or other satellite-based navigation services is not expedient, because their
application and use have already been regulated in law.
At present, the technical configuration of the next generation of digital tachographs is
being worked on by expert working groups of the EU Commission.
The vehicle and equipment manufacturers regard the planned introduction
scenario as unrealistic
Law, Sales and Aftersales
Denise Schondelmaier – industrial management assistant, purchasing clerk automotive drives,
ebm-papst St. Georgen GmbH & Co. KG, St. Georgen
L a w, S a l e s a n d A f t e r s a l e s
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A New Age of Car Sales
New EU directives for sales come into force
from June 2013
Competition relating to the quality of
products and services in sales of motor
vehicles has also gained in significance
Participants in the market will face the challenge of a whole new era in 2013 as far as
competition in automotive sales is concerned. The EU Commission, which has created
the new group exemption regulations for sales, has conducted studies that also found
that there is a high level of competition in the automobile market. New and used car
markets are under a considerable amount of pressure, while the dynamic module
policies and the introduction of innovative technologies by carmakers are making
additional requirements on dealership services. In addition, structural change within
the automotive trade continued to advance.
For dealership customers the range of vehicle models and versions with new alternative drive systems continues to grow. In addition to the price competition, which
has been prevalent for some considerable time, the importance of quality-based
competition for products and services related to sales has increased. Customers
expect new generations of models to have a better quality feel as well as extended
(electronic) functions and equipment and improved vehicle efficiency. Demands
for advice, staff professionalism and equipment have also increased at dealerships. Customer loyalty action by car brands and car businesses are met by a
well-informed, demanding public, which often has scoured the Internet to find out
detailed information about the product.
In Germany, more of the automotive industry operates a comprehensive network of dealers to sell vehicles (both cars and commercial vehicles). In large urban areas, some individual brands even have local plant offices that handle sales directly for manufacturers.
Selling new vehicles on the Internet is
still in its infancy
Selective selling is the preferred business model of the automotive industry
in Germany
The Internet now plays a major role in selling used vehicles; sales of new vehicles on
the Internet are still in their infancy, however. There are no indications at the current
time of the potential that independent and single brand portals may develop in this
area. It has been established that selected sales appear to be a suitable method of
selling customers new types of drive systems, for example, particularly in the technical
competition between the different brands.
Selective selling is therefore the preferred business model of the automotive industry
in Germany and the EU for new car sales. The various brands in the EU employ a
selected number of independent dealers, which usually have workshops on-site in
order to provide perfect national coverage while remaining local to the customer. At
the same time, the system of selective sales is considered efficient, viable and as helping to promote competition among the brands.
For car sales, a selected network of dealerships covering the entire countries means
the possibility of regular customer contact and therefore also enables the brand
concerned to provide a personal touch. The communication of the emotional elements
of a brand to private customers is one of the main jobs of a dealership, which the
Internet is hardly in a position to provide. The price and service competition between
automatic brands (inter-brand competition) places the sale.
189
Full-range offers from commercial vehicle sales
Compared to car sales, commercial vehicle sales are primarily aimed at commercial
customers who are now interested in buying comprehensive packages, which may
include the vehicle, the body, finance and other aftersales services. Commercial
vehicle customers make three main demands on sales staff — detailed sales support,
availability of demonstrators and a good understanding of the needs of the commercial vehicle business by sales staff. Of course, sales staff must have substantial experience in their customers’ industries, such as forwarding and construction. Commercial
customers continue to expect their brands to operate a “full-range” service network to
provide efficient support to running a commercial vehicle fleet, for example with low
downtimes for servicing and repair work.
Commercial vehicle customers expect a
“full range” service network
New sales opportunities through the
EU Vertical BER
The Vertical BER issued by the EU Commission (No. 330/2010) dated April 20, 2010
provides a reliable legal basis for the industry and trade to enable them to continue to
run selected sales systems. The planning and investment security that the regulation
brings is a decisive factor for medium-sized business in particular, which will allow
them to remain viable in the competition between the brands. Since the new Vertical
BER framework for new vehicle sales doesn’t come into force until June 2013, dealers
and the industry as a whole still have time to amend the dealer contracts on the basis
of the Motor Vehicle BER from 2002 that is still in force at the current time. The VDA
actively supported the passing of the new Vertical BER in 2010 by the EU Commission
and considers it a positive step toward maintaining the selective sales system.
The Vertical BER ensures the continuation of selective selling systems
The Vertical BER will enable manufacturers and dealers to reduce their costs and
improve the efficiency and profitability of their sales networks as a result of it imposing less detailed and more flexible regulations. In view of the continuing competition
to which both industry and the automotive trade are exposed, there is a great deal
of pressure to reduce the costs of both production and sales. The Vertical BER will
enable the players in the motor industry to adjust to changing conditions more easily.
Additional statutory regulations, for example for investment compensation claims by
dealers, are not required. The system set out in the German Commercial Code (HGB)
does not contain any such compensation regulation and opposes the existence of
financially independent dealerships.
Continuation of the partnership between the
industry and dealers
The new Vertical BER will provide the basis for the partnership between manufacturers and dealers from 2013. After this, manufacturers will control essential sales functions within their brand networks, but will also continue to rely on the independent
work of the dealers. The principle of the “cross-company value-creation community”
applies not only to automotive production, but will also have a major effect on the
cooperation between manufacturers and dealers. The “Code of Good Practice” policies
adopted in parallel in 2008 by the European automotive associations ACEA and JAMA
for dealer contracts will also ensure that minimum termination periods and alternative
arbitration procedures will be included in them.
The new Vertical BER will provide a
basis for the partnership between
manufacturers and dealerships
L a w, S a l e s a n d A f t e r s a l e s
190
Aftersales – a Stabilizing Factor in the Automotive
Industry
The garage business is an important
source of revenue for dealerships
The intensity of competition in aftersales is growing
The successful marketing of cars and
commercials will only be possible if
it is backed by a nationwide service
organization
The aftersales sector covers servicing and repair work as well as the parts and accessories business. The year 2011 and 2012 saw the business develop positively, including
the service business. The number of workshop hours and car parts sold during the
period rose significantly. The aftersales business is not directly tied to the volatility of the
new and used car business, but instead generally has a stable volume of business due
to the regular need of customers to have their vehicle serviced. The aftersales business is more notable for medium-term changes and may therefore have a stabilizing
effect on the automotive industry as a whole. According to the DAT Report 2013, garage
business continues to be an important driver of revenues for automotive business (see
DAT Report, pp. 46 ff.). The annual cost of servicing work, elimination of wear damage,
repairs and accident damage now amounts to over 39 billion euros. The service business is forecast to remain stable at its current high levels during 2013.
However, there are clear signs of increasing intensity in competition in the aftersales
sector. Manufacturers, suppliers, the parts trade and garages make a significant
contribution to providing attractive market conditions for customers with their innovative offerings. However, no dealership should count on the loyalty of existing customers
to secure the future of its service business. In addition, the servicing work required by
many new vehicles continues to fall as service intervals become more widely spaced.
This may mean a fall in revenues for garages (see DAT Report 2013, pp. 33 f.). On the
other hand, the ever increasing use of electronics means that the complexity of automotive engineering continues to rise, which means that vehicle keepers can carry out less
and less servicing work themselves.
The manufacturers can only make a long-term success of marketing cars and commercial vehicles if they also have a competent service organization for servicing and repair
work for their vehicles. This service organization must also be able to supply all spare
parts and this system must function correctly from the launch date of new vehicle
models. Car sales often go hand in hand with the customer thinking whether he or
she should also consider the dealership for the place to bring his or her vehicle to be
serviced. Often the work completed by a dealership’s garage will result in new purchases of the same brand from the same dealership.
Round the clock aftersales service with nationwide coverage remains essential for
commercial vehicles. The strategies that have been adopted by manufacturers of
commercial vehicles therefore include 24-hour service, extended warranties, full-service
leasing, a range of service packages and also telematic services. The aim here is to
create customer loyalty for the entire life cycle of the vehicle, which should remain functional at all times for forwarding contractors as it represents their main investment.
Technical development and increases
in the volume of electronics in automobiles place high demands on garage
personnel
German garage customers are highly
satisfied
The services provided by the sales organizations of manufacturers have always been
regarded by customers as the label for the brand concerned and the values associated
with the brand. Advanced technical development, the introduction of new drive systems,
increasing lightweight construction with new body and chassis designs and increasing volumes of electronics in motor vehicles place high demands on garage personnel
and equipment. Garages therefore need to carry large stocks of spare parts or have a
sophisticated parts logistics system, versatile technical equipment and personnel with
extensive training.
The quality of the service should also be reviewed and improved on a continuous basis.
Both manufacturers and garage operators have long been committed to this, but the
main focus is on the continuous improvement in instruments used for this purpose.
As soon as the vehicle arrives in the reception area of the garage a dialog should be
opened to clarify the scope of the work and even the invoice.
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Another general aim is to identify the customer’s needs and to provide servicing and
repair work offerings at the correct intervals. Customer and dealer satisfaction are
gauged at the same time and are used in the development of service actions and
processes. The DAT Report 2013 found (see page 42) that on average garage customers are very satisfied and awarded grades better than 2 to the service they received.
This continues the trend from previous years, which DAT produces in its regular
customer surveys.
Garage tests on the basis of incorrect lists of criteria can damage the image of the
brand, harm the dealership and even result in the loss of the brand contract. The
important thing is to ensure that these tests initiated by trade journals are conducted on
the basis of standard criteria that comply with trade practice. Manufacturers regularly
conduct quality tests on their dealerships using standard criteria that can then be used
to make improvements. Strong brand products and excellent service therefore form a
unit that can be maintained and built on by the brand and garage businesses together
to ensure that they all benefit from the added value.
Service preparations for the care of electric vehicles have already commenced. In fact it
is already possible to service and repair hybrid vehicles. Brand garages have adequate
technical facilities (primarily in terms of the workplace design) to deal with vehicles
with electric drives, batteries and above all high-voltage versions. In addition, the newly
designed career image of the vehicle mechatronic defined in 2003 laid the foundations for the professional qualifications required to be able to deal with alternative drive
systems such as those used in electric cars. The industry and trade are also training
current personnel in how to work on high-voltage systems safely. Furthermore, thousands of hybrid vehicles are already being driven on to lifting platforms at dealerships.
These vehicles also feature high-voltage systems and are more complex than vehicles
powered purely by batteries. The industry and motor trade will continue to adapt the
professional qualifications to match the technological advances.
The industry and motor vehicle trade
are adapting professional qualifications
continuously to technical developments
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Automotive Banks Continue to be Successful
in 2012
Demand on the rise for financial services from the private sector
Automotive banks, also known as captives, have developed into essential partners
for financing sales by manufacturers to providers of efficient, needs-based financial
service packages for private and commercial end customers. Although leasing, rental
and finance have had a dominant role to play for some considerable time in the
commercial sector, particularly for lightweight to heavy commercial vehicles, significant demand for financial services is now also present in the private sector. The main
customer contact by automotive banks generally takes place, and is maintained, at
the dealerships. This is why the selling of specific financial services to end customers
now plays a central role in the automotive business. The success of automotive banks
therefore presents additional marketing potential for dealerships.
Banks run by the manufacturers recorded a successful year in 2012. This particularly included rising new business volume in the core business of leasing and finance
amounting to 30.8 billion euros. This also provided effective support to the parent
groups while the automotive banks were able to move into new promising areas of business as a result of their good market position. Growth in 2012 was achieved in difficult
market conditions. For example, the automotive banks were able to grow the volume of
new business by a solid 4 percent to help sales by their related manufacturers. Automotive banks act as a stabilizing factory in weak market phases, while during strong
market phases they have a dynamic effect and act as a catalyst for the market.
Many automotive bank customers
chose a leasing solution in 2012
The volume of contracts signed by manufacturer-related automotive banks overall, in
other words the value of all contracts held by the automotive banks, is also considerable with the financial service providers experiencing strong growth of around 4
percent during 2012 to reach a total of 91.5 billion euros.
In keeping with the ongoing trend to “use rather than own,” many automotive bank
customers chose a leasing solution last year. At 20.2 billion euros, the volume for
leasing was greater than that for financing vehicles, which totaled 10.6 billion euros.
The automotive banks have played a major part in shaping the trend away from
finance and towards leasing as a result of their extensive product portfolio.
This is also underline by the average finance and leasing totals for automotive customers during the last year with the average finance total in 2012 being 20,750 euros,
representing an increase of 6 percent over 2011. The average leasing total was 27,532
euros, which represents an even higher increase of over 9 percent compared to the
previous year.
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Automotive banks also growing in the used car
business
The used car business is a major driver of growth. Brand business in Germany
recorded growth of 2.3 percent to 30.87 billion euros in the used car segment during
2012. If we look only at the performance of manufacturer-related banks, these businesses increased volumes of used cars by 10 percent, which had a dynamic effect
on the market.
This is all made possible by another strategic component of automotive banks — the
manufacturers’ banks have extended their offerings in the used car segment and
now play a full part in this particular market. One of the main keys to success in this
respect is that the product range from the new car segment, with lots of mobility
services such as insurance services and extended warranties, have also been used in
the business for relatively new, high-value used cars.
Another area of growth for the future will be service packages. These contain a whole
host of car-related services that go beyond finance and leasing, such as increase,
credit protection documents, warranty and repair insurance policies, maintenance and
wear and tire services.
Several new records were also set in this strategic competition segment with the
financial subsidiaries of the automotive majors supplying 1.8 additional services
per finance or leasing contract for new cars during 2012. With a total of more than
2.2 million service contracts, this meant a further 6 percent growth in this sector
compared to the previous year. They even managed to record low growth of around
1 percent in the highly competitive market for motor insurance. The corresponding
figure for other service contracts was 9 percent.
Automotive banks have extended their
offerings in the used car segment
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New business models for automotive banks
Automotive banks are developing
into comprehensive mobility service
providers
Automotive banks are extremely optimistic for the year 2013 as far as the “software”
of the financial services is concerned. In the near future, they expect growth opportunities from major factors such as specific offers for mature markets in the new car
segment and further expansion of offerings into the segment of “new used” cars.
In addition, car-related services are increasing all the time and are being used as a
driver for growth.
These mobility services also form the link to new mobility concept and business
models in which the automotive banks will play a leading role. The automotive
industry’s banks will continue to develop away from financial services providers to
become modern, comprehensive mobility service providers.
Sensible bank regulation in the automotive sector
Automotive banks provide stable
support to the automobile industry
The new Basel III regulations are also important for the automotive banks. The
captives have already made all the preparations and are already complying in full with
the future more stringent equity requirements. Nevertheless the finance subsidiaries believe that it would be desirable for the regulating institutions to consider them
slightly differently since the business model of the automotive banks is focused purely
on finance for goods and this is hardly comparable with the model adopted by investment and commercial banks.
Loans from manufacturer-related banks have a solid value, namely the vehicle itself.
As a result of this the automotive banks have been an important and stable support to
the automobile industry for some years now. With this in mind, many players are now
justifiably asking whether “one size fits all” regulation actually makes sense.
This discussion about regulation is also raging in the EU, and as far as the VDA is
concerned it would be desirable if Basel IV started once again to give due consideration to the various business models used in the financial services sector.
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Protection for Innovations – Patents and
Design Patents
The German automotive industry (manufacturers and the supply industry) is the leading group in the whole of industry in terms of annual applications for patent and other
intellectual property rights. The creation of suitable modern instruments to protect
commercial rights is the only way to provide general and investment security to the
progressive and inventive forces at work in the German automotive industry.
Commercial intellectual property rights
provide an essential basis for product
marketing
The automotive industry acknowledges the massive importance of patents, utility
models, brands and design patents for research and development work. Commercial
intellectual property rights in the EU and in the main export markets for the automotive industry provide an essential basis for marketing innovative products. Intellectual
property rights in many cases are a major part of a company’s value — with a protected
invention often even being a major reason for the very existence of smaller companies.
There should be no unilateral restrictions placed on patents and other intellectual property rights, just as there should be no let up in the fight against product piracy in both
industrialized and emerging countries.
The automotive industry is dependent on the continuation of intellectual property
rights and will continue to file for patent protection and design patents. These rights
are also regularly defended against breaches and piracy attacks by means of warnings and lawsuits. Copying exterior motor vehicle components and even dangerous
copies of airbags also requires confiscation action at borders by customs authorities
or in foreign markets by the local police.
The proposal to abolish intellectual property rights for components as part of a
so-called repair clause is repeatedly entering the political discussion both at EU level
and also in various member countries. The massive efforts of Germany and the EU to
encourage other countries (particularly China and India) to comply with intellectual
property right law is becoming more and more relevant for maintaining the competitiveness of the Germany motor industry. These efforts would be completely hamstrung
by the abolition of intellectual property rights. This would also lead to further softening
in other industries as well.
Current discussions must particularly include the importance of commercial intellectual property rights in the automotive industry (manufacturers and suppliers) and
their role in the fight against product piracy. The high value attached to commercial
intellectual property rights in Germany, including design patent law, is reflected in the
innovative work being carried out by the industry. The German automotive industry
holds a globally acknowledged top position, particularly where sophisticated engineering and the design of vehicles are concerned.
Component protection (from design patents and general patents) has been used
successfully for many years in Germany, the EU and globally by vehicle manufacturers and leading component manufacturers to protect their innovations. Successful
automobile design extends to the details of exterior mirrors, lights, headlights, panels,
doors and bumpers. The manufacturers and suppliers represented in the VDA are
interested in the unlimited protection of the design of their components. This also
applies to patent protection. In fact many exterior components include patented
technologies (for example, the adjustment mechanism for exterior mirrors or sensors
in bumpers), which, like design patents, protect them from piracy.
Design protection must be maintained
The German automotive industry is the
global leader in vehicle design
VDA members are interested in unlimited design protection for components
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The active use of innovation protection in the form of design and general patents by
the automotive industry is the legitimate and economically sensible use of commercial
intellectual property rights, which has not resulted in any restrictions on the spare
parts trade in the EU to date. However, the use of commercial intellectual property
rights does prevent premature exploitation by non-European product pirates for whom
the EU spare parts market offers massive potential.
The design work on the components is carried out regardless of whether the components will be used on the new vehicle or in the spare parts business. In any event,
every component should have some sort of brand reference in the same way as
brands are used on spare parts. Design has a very similar function as the brand.
The design of components depends on the design of the body as a whole, but also
features highly independent elements as the headlights or bumpers from current
generations of vehicles demonstrate.
Commercial intellectual property rights are designed to offer protection from product and brand piracy. If a patent or design patent on a spare part is breached, this
constitutes a breach of intellectual property law. The exploitation of such breaches
on a large scale can be described as product piracy. There are growing indications
on Asian components markets in particular that brands, packaging and the products
themselves are being copied on a large scale.
The costs of components and repairs
are no cheaper where there is no
protection for component design
The abolition of design protection
jeopardizes a large number of jobs
There is no justification for the idea that repair and component costs will fall if design
protection is abolished. In the EU in particular there are clear indications that the
costs of components, repairs and also insurance premiums are by no means cheaper
in countries where no design protection is available for components. A recent price
comparison by Deutsche Automobil Treuhand (DAT) in 2012 in fact showed that
Germany is at the lower end of mid-range prices in the EU. The DAT comparison
showed that there is no direct correlation between design protection and the price
level of spare parts. This recent study by market research company DAT grouped
the manufacturers’ recommended prices for several thousand components and thus
covered around 90 percent of the market.
The abolition of design protection is a threat hanging over a large number of jobs in
the EU (up to 50,000 / Source: ACEA). The low number of jobs in the manufacture and
sale of copied bodywork components is disproportionate to the jobs in the industry
within the EU that would be replaced by production being relocated to the Far East.
Since domestic value addition is constantly being reviewed in view of the increasing
competition and current plans for further overseas investments in development and
manufacturing facilities, the EU and Germany should be given special consideration
as a technology location.
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Brand and product piracy
In addition to protecting intellectual property, it is essential that there is an effective
system for prosecuting breaches of intellectual property rights. Brand and product
piracy is still a serious problem for motor manufacturers and suppliers both in the EU
and also in other markets such as Asia. Illegal copies are particularly prevalent on the
market for spare parts and accessories. Filters, brake discs and pads, spark plugs,
lights, headlights, bodywork panels and wheels are particularly frequently copied.
Complex technical products that can easily be identified by experts as copies are
more rarely imported.
Since only a small proportion of pirated products are collected by seizures, the actual
number must be very high. The European Association of Automotive Suppliers CLEPA
estimates the damage caused by product piracy relating to the car at between 5 and
10 billion euros per year throughout Europe. According to German customs statistics,
over 80 percent of seized automotive copies in 2011 originated from the People’s
Republic of China, followed by Turkey and Hong Kong. In view of the ever greater
spread of the Internet as an ordering and selling channel, the relevance of product
piracy for the automotive industry is expected to rise.
Brand and product piracy not only represents a danger to the automotive industry but
also to consumers since car parts are often inextricably linked to safety. The failure of
copies brake discs, for example, may result in fatal accidents. It is not generally possible to assess the quality of copies simply by looking at them, however.
The automotive industry therefore also makes great efforts to prevent copies by
making genuine parts immediately identifiable by means of test figures, holograms,
2-D codes or other security features. The companies also regularly take action at
exhibitions or with customs forces at import locations to prevent patent and brand
breaches. They are supported in these efforts by the VDA with the assistance of the
Network against Brand and Product Piracy.
Brand and product piracy is a
serious problem for manufacturers
and suppliers
The damage caused in Europe by
product piracy is estimated at between
5 and 10 billion euros per year
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The VDA demands the implementation
of patent and brand laws by courts and
authorities in emerging countries
To protect the automotive industry from others exploiting its reputation, watering
down their brands, causing customer uncertainty and damaging the brand image,
not only is an adequate level of protection for intellectual property required in the EU
but also necessary in the relevant emergency countries. The VDA therefore demands
that patent and brand laws are implemented with the appropriate force by courts and
authorities in emerging countries.
European patent with standard protection
One in three automotive patents in
Europe originates from a German
company
The EU patent offering standard
protection must be attractively priced
and legally watertight
In addition to brand and design protection, patent law plays a very important role
in protecting innovations for manufacturers and suppliers. The German automotive
industry is among the leading applicants for patents globally. In Europe alone, one in
three automotive patents originates from a German company. Some of the more familiar patents registered by the German automotive industry include the anti-lock system
(ABS), the double clutch gearbox and the electronic accelerator. Patents not only play
a major role for the large concerns but can also be extremely important to small and
medium-sized enterprises. In fact the proportion of companies with up to ten patent
applications in Germany per year has been over 96 percent for many years.
The VDA has long been campaigning for a standard, low-cost EU patent that is legally
watertight. In Europe to date there has only been a European patent. This European
patent is broken down after it is granted into various national intellectual property
rights (“European bundle patent”). Efforts to achieve a uniform European patent law
date back to the seventies. To be competitive in the global market the EU patent offering uniform protection must be made cheaper and even more legally watertight. After
several highs and lows in the trilogy process to introduce a European patent offering
uniform protection, the European Parliament and council at last formally accepted the
so-called “patent package” as part of the legislation for closer cooperation in December 2012. This means that the EU took a major step en route to a uniform EU patent
in 2012. However, there are still no concrete details for the court procedures and a
system of charges. The VDA welcomes these developments and hopes that the European patent offering uniform protection will be available at low cost and be legally
watertight. Only then can a uniform European patent be competitive on a global level.
The patent package, which was agreed by the European Council and the European
Parliament, consists of three different pieces of legislation:
• Regulation of the European Parliament and of the European Council implementing
enhanced cooperation in the area of the creation of unitary patent protection
• Regulation of the European Parliament and of the European Council implementing
enhanced cooperation in the area of the creation of unitary patent protection
with regard to the applicable translation arrangements
• Agreement on a Unified Patent Court
The breakthrough for the European
patent was a long time coming
Originally, it was expected that the major political breakthrough for the European
patent offering uniform protection would be made in June 2012. After all, in their
final recommendation the heads of state and governments finally managed to agree
on the extremely disputed question of the seat for the central instance of a unified
patent court — the headquarters of the patent court will be in Paris while there will be
branches in London and Munich.
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However, the heads of state and government linked this agreement to the deletion of
a major provision relating to material legal protection (rights of the patent holder and
amount of protection afforded by the patent) from the EU Patent Regulation, which
had already been passed by the council and the European Parliament. This resulted
in a new low in the trilogy process between the council, the EU Parliament and the
commission, which was then finally overcome by a compromise in the form of a reference solution in December 2012. The scope of the material law provisions is now no
longer set out in the actual regulation. As a result of the precise design of the rights
and the limits of the scope of protection, reference is made to the European Patent
Treaty, the future court agreement and national patent law. The extent to which this
reference solution is covered by the authorization principle of Art. 118 of the Treaty on
the Functioning of the European Union must be proven.
The regulations come into force 20 days after their publication but will not actually
be applicable until 1 January 2014 or the date on which the Agreement on a Unified
Patent Court comes into effect, whichever is the later. In order for the court agreement to come into force, at least thirteen member states, including Germany, France
and the United Kingdom, must first ratify the agreement. This ratification process will
be used by various member states to discuss various points of the patent package
yet again. It is therefore not expected that the court agreement will come into force
between 2015.
The complaints by Italy and Spain against the decision of the council to authorize
enhanced cooperation for the uniform EU patent also have little prospects of success
since the European Court Advocate General suggested in his final statements in
December 2012 that he would reject them. This leads us to hope that Spain and Italy
will also join a new EU patent system.
At least thirteen EU member states
must ratify the agreement
Italy and Spain also intend to join the
new EU patent system
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Public Procurement — New Requirements for Motor
Vehicle Purchasing
Public bodies and the automotive
industry are facing major changes in
public procurement
Around 10 percent of all cars and commercial vehicles manufactured are purchased
in Germany by public bodies. This number underlines the great importance of public
procurement for the automotive industry. Both the public purse and the automotive
industry are facing major changes in public procurement, a process that is currently
being discussed at both a European and national level. This initially relates to the directive proposed by the EU Commission for modernizing procurement law. In addition, the
legal basis for public procurement in the defense and security sectors has changed.
Proposed directive for the modernization of
public procurement
The new proposed directive is aimed
at making the procurement process
simpler and more flexible
The EU Commission put forward a proposal for a directive for the modernization
of public procurement in December 2011. Essentially this proposal is aimed at the
simplification and flexibilization of the procurement process, the strategic placement
of public orders, the inclusion of environmental and social aspects and better market
access for small and medium-sized enterprises.
The VDA welcomes a wide range of the provisions in the proposal, such as the retention in principle of the current threshold values, the planned facilitations relating to
verifying the bidders, the necessity of relating general political specifications to the
subject of the order, the maintenance of the limits of the application of the negotiation process, the minimum transparency guarantees for negotiation processes and the
EU-wide clarification for “self-purification.”
However, the VDA also believes that a large number of the provisions deserve criticism. These include the lack of clarity relating to procurement terminology, excessive exemptions for in-house business, exemptions for sub-central public customers,
specifications relating to special social requirements, reductions in deadlines for the
submission of bids and the partly imprecise formulation of grounds for exclusion.
With this in mind, the BDI submitted a response to the commission’s proposals for the
revision of Directive 2004/18/EC in May last year, which had been ratified by the VDA.
Discussions on this subject are ongoing.
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General automotive industry view of public
procurement
Together with its members, the VDA has started the process of discussing public
procurement at a national level with representatives of various German federal
authorities. The topics up for discussion include the special challenges and hurdles
facing the automotive industry in responding to public tenders and the reasons
behind the added work required for responding to tenders and winning contracts.
VDA members have stated that their grips include the fact that the processing time for
tenders is too short, there is no scope for accepting differences in the reference vehicle, regular delivery statics must be submitted, the size of the volume spread within a
tender and the status of sample vehicles that must meet very detailed specifications.
The VDA has surveyed its members
and German authorities about public
procurement
Electromobility
The subject of electromobility also has an ever more important role to play in public
procurement. Also last year the VDA started a dialog at federal minister level, which
marks the start of an exchange between public bodies and the automotive industry on
the subject of public procurement. In addition to questions relating to current developments in public procurement, the subject of electromobility also featured in the talks. For
the public bodies this is a very important subject since they are committed to ensuring
that 10 percent of all new vehicles are electric cars.
EU Directive dated December 16, 2008 on the coordination of procedures
for the award of certain works contracts, supply contracts and service
contracts by contracting authorities or entities in the fields of defense and
security (2009/81/EC)
The Sixth Regulation on amending the regulation on the award of public
contracts and the procurement regulation for defense and security came into
force on July 19, 2012. The reason for this amendment was that in the past
member states had only tendered for these goods and services on their domestic markets rather than throughout Europe, which meant that almost 85 percent
of the procurement orders for armaments projects were awarded to domestic
companies. The new regulation is aimed at opening this market to create greater
transparency and competition in the procurement process.
Public bodies are being encouraged to
ensure that 10 percent of new vehicles
are electric cars
This new directive creates greater
transparency and competition in
procurement
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Automotive Aftersales
Revenues in the automotive aftermarket
remained stable in 2012, at the same
levels recorded in the previous year
The average age of a car on German
roads in 2012 was higher than ever
before
The automotive aftermarket is a major part of the German and global motor vehicle
industry. Despite the fluctuations in the aftersales business, revenues in 2012
remain stable at the same levels recorded in the previous year, particularly in the car
sector. Suppliers were affected to different extents by the fluctuations in demand on
the global markets depending on their product portfolios. In principle, however, we
can say that widespread, global diversification is important for these companies.
The use of garage capacity in 2012 was 83 percent, which was similar to the level in
the previous year. At 8.7 years of age, the average age of cars on German roads was
higher than ever before. One of the main developments in the garage business is
garage portals, which offer services agreed in advance at fixed prices. At the same
time, revenues for vehicle components on the Internet continue to rise. Tires, navigation
systems, care and tuning, in particular, are products and services that are already traded
widely on the Internet.
VDA activities
Standardized measurement helps
companies assess their planning
situations
The aftermarket segment published a recommendation for the standardization of planning quality measurement in the aftermarket in 2010 (VDA Recommendation 9000). This
standardized measurement helps companies to assess their planning situations and
allows action to be taken to improve the supply chain performance. In January 2012,
ODETTE adopted this measurement method under No. LG07 and recommends it both to
the aftermarket and also for production measurements. [ODETTE: European organization for the development of standards and recommended applications for e-business,
cad data exchange and logistic processes in the automotive industry.]
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Along with the Central Federation of the Electrical Engineering and Electronics
Industry (ZVEI), the VDA published a joint recommendation in March 2012 as to how
the manufacturers involved could improve supplies of post-production electronic
components (VDA Recommendation 605). Both the car manufacturers and suppliers
and component manufacturers were involved in this recommendation, which means
that for the first time the entire supply chain was included. This subject is not just one
for the automotive industry in Europe, however. VDA Recommendation 605 can also
be used by other non-European countries as a starting point for talks between the
automotive industry and manufacturers of electronic components.
In the past, the VDA has campaigned for the state subsidy for retrofitting particulate
filters to be reintroduced on January 1, 2012. As a result of the high demand for the
current program the Federal Ministry of the Environment amended the subsidy regulation in June 2012 again so that the subsidies for retrofitting particulate filters will now
continue until December 31, 2013. As a result of this program, anybody retrofitting a
particulate filter will receive a subsidy of 330 euros in 2012 and 260 euros in 2013.
Another subject that is increasingly engaging VDA members is the remanufacturing of products. Remanufacturing becomes particularly interesting for aftersales
supplies where products have a high material value, for example. The VDA has
been working with various bodies including CLEPA on various processes to ensure
that there is a standard understanding of this subject in the VDA and also so that a
definition of remanufacturing can be developed. In addition, the unrestricted export
or import of remanufactured spare parts is not possible to and from all markets for
VDA member companies. The VDA will therefore campaign in these countries for
an improvement in trading conditions and the required establishment of a return
system for remanufactured products.
A standard definition of remanufacturing should be developed
The “Quality is added value” initiative started by some VDA member companies is
attracting an increasing amount of attention in the aftermarket. The aim of this initiative is to highlight the quality awareness of wholesalers and garages. It also communicates liability aspects and members’ service promise. This subject has already
created a good deal of interest at major aftermarket exhibitions. The VDA supports its
members in this quality initiative.
Measuring the reliability of deliveries in the
aftermarket
Measuring the reliability of deliveries is extremely important in the automotive aftermarket. These figures are often used as a basis for negotiations with suppliers or are
used by management to assess the logistical performance of its suppliers. As part of
a VDA project for the standardization of measuring the reliability of deliveries in the
aftermarket, a standardized figure has been developed for use by OEMs and suppliers. A position-related measurement with 100 percent volume reliability has been
created to satisfy the requirements of the aftermarket and ensure the figures are
comparable between OEMs and suppliers. The measurement can be made on a rolling basis. Outstanding deliveries from previous times are also included in the consideration. The new feature is the integration of a sustainable measurement of supplier
performance in the reliability figure and support for the active control of supply chain
performance by supplementary secondary figures. The measurement of the same
figures for OEMs and suppliers is supported by appropriate tolerance corridors.
A VDA recommendation on this subject is planned for publication in the first
half of 2013.
A VDA project is looking at the standardization of measuring the reliability
of deliveries in the aftermarket
Quality Management
Nihar Kothari – Bachelor of Business Administration, Trainee, VOSS Automotive GmbH, Wipperfürth
Q ua lit y M a n ag e m e nt
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Quality: The Trademark of the German Automotive
Industry
The German automotive industry
operates at the highest quality level
VDA standards are managed by the
VDA Quality Management Committee
A considerable rise in certified
production sites was noted in China
and India over 2012
In 2012, German automotive products continued to rank highly in respect of recognized quality indicators. This clearly shows that despite the major challenges faced
by the German automotive industry (e.g., electromobility, increased use of driver
assistance systems, globalization of supply chains and product customization), the
industry continues to operate at the highest levels of quality.
The QMC, guided by the QMA, is an active center for quality management in the
German automotive industry. Innovative products are necessary to ensure this
remains the case, as are stable processes and meaningful quality standards,
methods and systems. The globally recognized VDA standards and all quality
management activities at the association level are managed by the VDA “Quality
Management Committee” (QMA). The QMA operates the Quality Management
Center (QMC) in Berlin as its business office. VDA’s quality management activities
are guided by the Quality Management Committee and are actively implemented
by the QMC. The VDA QMC series of publications documents the results of the
working groups and those of QM experts at manufacturers and suppliers.
The number of companies globally certified under the ISO/TS 16949 QM standard
increased again in 2012 by more than 5 percent, now totaling more than 50,000
certified production sites. Compared to the previous year, Asia as a region accounts
for a disproportionately large increase. In China and India in particular, the number
of certified production sites increased by just over 10 percent. The number of certificates stabilized at a high level in the other regions.
The 14 certification bodies approved and monitored by the VDA QMC in its capacity
as one of five IATF Oversight Offices issued more than 23,000, or almost 46 percent,
of all existing ISO/TS 16949 certificates. Certification under ISO/TS 16949 continues
to function as an entrance ticket for suppliers into the automotive supply chain. But
companies further upstream in the supply chain are also increasingly recognizing
the benefits of certification under the QM standard ISO/TS 16949.
207
Training and continuing education activities of
the VDA QMC
In 2012, the sales figures and numbers of participants for the VDA QMC’s training
and continuing education activities stabilized at a high level, maintaining the trend
set in the previous year. Licensee business increased by an additional 42 percent
compared to 2011, primarily due to the expansion of training activities offered in
North America and India.
The quality of any training session stands or falls with the trainer. This is why the VDA
QMC has formed a working group to manage the training and continuing education
activities of QMC trainers. Trainers participate in courses to learn how to employ
existing media effectively, use correct conversation techniques and deal smoothly with
conflict situations.
In an effort to maintain the association’s presence in the Russian market –
an important market for the German automotive industry – the VDA QMC Russia was
founded in Moscow. It also serves as a center offering methods and tools in the form
of Russian-language publications and training courses. The office is currently staffed
by four employees; in 2012, they trained 170 participants in open training sessions and
600 participants as part of in-house training sessions on the VDA quality management
methods and tools developed in Germany.
The number of participants in training
and continuing education activities
remained high in 2012
Q ua lit y M a n ag e m e nt
208
QMC China effectively illustrates VDA’s increasing international orientation. The VDA
QMC China is the representative office and platform of the VDA QMC Germany in
China, with headquarters in Beijing and another office in Shanghai. The office offers its
services to VDA member companies and the local supply chain – naturally maintaining
the excellent quality expected of the VDA.
VDA QMC China instituted its own
quality management committee in 2012
In 2012, QMC China trained and certified more than 1,000 participants in auditor
training courses (VDA 6.3 Process auditors; VDA 6.1 and ISO/TS 16949 QM system
auditors). QMC China also carried out many in-house and public training sessions on
quality management in 2012, in addition to a range of QM coaching projects. Demand
continues to rise every year for the extensive VDA QMC series of publications in
English and Chinese. The year 2012 also saw the establishment by the VDA QMC
China of its own VDA quality management committee (QMA China), which will meet
quarterly; the QMC China managing director was elected as its first chair. The QMA
will function as a platform to respond to the needs of the Chinese market with regard
to quality management and effecting improvements in this area. This work is recognized equally by local manufacturers and suppliers. The German and Chinese QMA
regularly exchange results, thereby ensuring a common global basis of information
for VDA QM.
The worldwide network of the VDA QMC licensees
Berlin
Moscow
Basic and advanced training
Events
Publications
VDA 6.x monitoring body
IATF Oversight Office
Working group
Southfield, MI
Royal Oak, MI
Basic and advanced training
Events
Publications
Beijing
Basic and advanced training
Events
Publications
Licensee
Pszczyna
Birmingham
Licensee
Licensee
Prague
Carquefou
Licensee
BanskГЎ Bystrica
Licensee
Licensee
Madrid
Miami FL
Budapest
Licensee
Licensee
Quinta do Anjo
Puebla
Licensee
Licensee
Licensee
Turin
Licensee
Nagoya
Cisnadioara
Licensee
Licensee
Timisoara
Licensee
Graz
Licensee
Mumbai
Licensee
SГЈo Paulo
Licensee
East London
Licensee
Source: VDA QMC
209
Management Systems for Traffic Safety –
Standardization Process Complete
ISO 39001 “Road Traffic Safety Management”
ISO 39001 “Road Traffic Safety Management” is a standard for management
systems comparable to ISO 9001 for road traffic safety. The standard was published in 2012 and allows organizations involved in the overall road traffic system to
become certified under the standard. The standard is intended to improve road traffic safety over the long term and reduce the number of deaths and serious injuries
caused as a result of traffic accidents.
To this extent, it is addressed primarily to road traffic safety authorities, the police,
motor vehicle manufacturers, road construction firms and transport companies. It
requires that a process be instituted to monitor and evaluate the number of accidents, deaths and serious injuries and propose measures to continually improve
compliance with road traffic safety. For instance, measures could involve extending
speed limits to more areas and introducing systems to check drivers’ alcohol levels
before each trip in their vehicle. The standard contributes to efforts to augment road
users’ own responsibility for traffic safety and to support legislators and regulatory
authorities in implementing technical, organizational and regulatory measures.
The Automotive Engineering Standards Committee of the VDA was involved at
the German national level in developing this international standard. Since motor
vehicles produced by the German automotive industry are already extremely safe,
technical defects account for only a minuscule proportion of accident causes. Most
Western countries are already setting benchmarks in road traffic safety. On the
other hand, certification can result in higher costs for companies and organizations.
The standards committee’s involvement in this project therefore aimed primarily to
optimize the potential costs of certification.
The ISO 39001 standard aims to
improve long-term traffic safety
The standard provides a framework for
implementing technical, organizational
and regulatory measures
Technical defects only causative for
a fraction of accidents
Historic Vehicles
Stefan Urich – nc milling expert, Bertrandt Ingenieurbüro GmbH, Munich
H i s to r i c v e h i c l e s
212
Consistent and Continued Commitment to Vintage
Vehicles
German manufacturers invoke their
history to bolster brand value
Historical vehicles must be permitted to
retain their original character
The VDA established the “Historical Vehicle” division at the beginning of 2007, to
support the interests of vintage vehicle clubs and drivers, which are growing steadily in number. Among vintage vehicle enthusiasts, the increasingly strict legislative
initiatives on environment and traffic safety in particular caused a sense of unease
since technical considerations make it impossible to modify many historical vehicles
in the ways necessary to comply with potential new benchmarks. Many VDA member
companies are starting to set more value on their place in automotive history and
efforts to preserve traditions are steadily assuming greater importance. German
automotive manufacturers use their history to strengthen their brand values, provide
an orientation framework for customers and employees, and differentiate themselves
from the competition. The increasing number of historical vehicles and owners are
viewed as ideal brand ambassadors.
Those responsible for cultivating tradition at the German automotive manufacturers
Audi, BMW, Daimler, Ford, Opel, Porsche and Volkswagen, along with their counterparts
at the suppliers Bosch and ZF Friedrichshafen, collaborated to produce a basis for all
future activities in this area. They proposed to pursue the objective of creating framework conditions capable of allowing historical vehicles to continue to operate on public
roads in the future without hassle. Historical vehicles cannot and should not have to
adapt to current standards and should be permitted to retain their original character.
Constant technical progress, especially related to the environment and safety, harbors
the risk that historic vehicles will be seen increasingly as exotic pieces or even as a
risk to traffic safety. This had made it increasingly necessary to obtain exceptions for
older vehicles in current legislation.
The Historical Vehicles Working Group
represents the interests of historical
vehicle owners, those of the commercial trade in historical vehicles and of
the automotive industry
Since the historical vehicle scene has developed in a heterogeneous manner since 2007,
the VDA has endeavored to strengthen and professionalize those representing the interests of historical vehicles. The intention is to bundle together several stronger interest
groups and coordinate with them to pursue policy objectives. This is the background
behind the 2009 founding of the Historical Vehicles Working Group, to which the VDA,
ADAC and the German Federation for Motor Trades and Repairs (ZDK) belong. This
working group represents the interests of historical vehicle owners and clubs, as well as
the commercial trade in historical vehicles and those of the automotive industry.
213
Political Work Based on Data
The Allensbacher Analysis of Advertising Media (AWA) for 2012 shows that some 15.9
million Germans are interested in historical vehicles and motorcycles. This is equivalent to 24.7 percent of the population older than 14 years, placing the figure 3 percent
above the value from 2002 – the historical vehicle trend continues.
Many policy initiatives are based on hard data that reflects the various developments
relating to historical vehicles and their scene. Along with evaluations of the history,
this data is a necessary component for producing forecast models of any kind. The
VDA therefore regularly collects and publishes special evaluations performed by the
Federal Motor Transport Authority (KBA).
Evaluations and other documents are published annually on “H” registration plates,
demographics, ABC lists of the most common historical vehicles and, since 2010,
annual change of ownership figures for historical vehicles. The German Oldtimer
(Historical Vehicle) Index is published annually and strongly indicates that historical
vehicles are not acting as speculation objects.
In the aftermath of the financial and economic crisis, asset and investment advisers
increasingly turned to alternative investment opportunities. Since there were no reliable statistics tracking price changes of classic vehicles, the VDA decided to introduce
comprehensive, fact-based monitoring of the German market. With help from an established information service for historical vehicles, an index that tracks price changes
over past decades was produced. The German Oldtimer Index includes data for 88
representative historical vehicle models in Germany, selected from around 200,000
data records consisting of appraisals and auction results.
In 2012, the index indicated an increase of 4.2 percent over the previous year.
However, historical vehicles in general are ill suited as investment objects since their
purchase is associated with a series of secondary costs that would quickly overtake
any potential value increases. In light of this, it makes most sense when historical
vehicle purchases are motivated by emotional ties.
German Classic Car Index
Index curve since 2003
2,200
2,023
1,941
2,000
1,800
1,690
1,600
1,732
1,776
1,511
1,430
1,400
1,190
1,200
1,215
1,104
1,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: classic-tax
H i s to r i c v e h i c l e s
214
Accident Statistics for Historical Vehicles
Historical vehicles are less likely to
be involved in accidents causing personal injury
Reducing traffic accidents is a major objective of European transport policy. It is also
the goal of the “European Road Safety Action Program,” which aims to cut in half
the number of fatalities and injuries due to traffic accidents by 2020. Both active
and passive technical safety measures play a key role in the program. This includes
systems such as intelligent seatbelts, fatigue alerts and daytime running lights. The
road safety program proposes to retrofit older vehicles with more recent technical
features. This is not feasible in the case of historical vehicles. It is often alleged that
they are a significant hazard to public road safety due to the outdated condition of
their technical systems.
To assess this prejudice, the VDA commissioned a study from the well-respected
accident research group at the University of Dresden to look into the involvement of
historical vehicles in accidents. Based on historical data maintained by the Federal
Motor Transport Authority and official accident statistics (DESTATIS), all accidents in
2010 and 2011 involving passenger vehicles in Germany were assessed. The results of
the analysis can be summarized as follows:
• Based on their service life, historical vehicles are eight times less likely to be
involved in accidents causing injury than other passenger vehicles.
• Like new vehicles, historical vehicles are less likely to be the main cause of
accidents.
• The technical shortcomings of historical vehicles are cited even less often as the
cause of accidents than is the case for new vehicles.
• When they do cause accidents (involving personal injury), drivers of historical
vehicles tend to make the same mistakes as those driving other passenger vehicles.
The reasons for historical vehicles’ good track record in the statistics can likely be
traced to the fact that they are not driven as far (annual kilometers driven) or as often;
they are driven more defensively; and the fact that they tend to be used only in certain
conditions (less driving in winter, poor weather and at night).
Classic car participation in accidents 2011
per 100,000 vehicles
753
Personal injury
823
91
Fatalities (per 1,000,000)
19
76
110
127
116
165
159
Seriously injured
17
629
Slightly injured
819
651
72
253
Serious property damage
32
0
996
200
358
328
400
30 years
600
20—29 years
800
10—19 years
1,000
0—9 years
Source: Study by VUFO GmbH, Dresden University of Applied Sciences
215
The Charter of Turin as a Future Guideline
for Historical Vehicles
The International Federation of Historical Vehicles (FIVA), (FГ©dГ©ration Internationale
des VГ©hicules Anciens) was founded in 1966. Especially in recent years, FIVA has
grown into an internationally respected organization, largely owing to the inclusion of
new national organizations from the US and China. Since beginning its work, the VDA
has cooperated closely with FIVA to preserve historical vehicles.
The charter aims to preserve historical vehicles as cultural products of a
technical variety
FIVA aims to ensure that historical vehicles are preserved and functionally maintained
without counterfeit, so that future generations can experience these valuable cultural
products. One of the most important recent FIVA initiatives advocates for recognition
of historical vehicles as valuable cultural products of a technical variety. The “Charter of Turin” was drafted to give basis and expression to the ideas motivating this
work. It was adopted by the FIVA General Assembly in December 2012. The charter
is modeled on the Venice Charter for the Conservation and Restoration of Monuments and Sites, and specifies ways in which historical vehicles can be protected and
conserved as mobile, technical cultural products. It is predicated on the conviction
that historical vehicles are more than cult objects; as cultural heritage artifacts they
bear witness to industrial history and societal developments.
Historical vehicle owners and collection curators are already successfully advocating for the preservation and continued operation of historical vehicles. The charter
was adopted by FIVA to provide a framework for decisions and measures relating to
historical vehicles. It consists of a collection of principles governing the use, upkeep,
conservation, restoration and repair of historical vehicles. This guideline endeavors to
help historical vehicle owners make sensible and sustainable decisions. The objective
of preservation, restoration and all related procedures is to preserve historical vehicles
– as technological artifacts or as witnesses to transportation and cultural history.
The VDA actively assisted in developing the Charter of Turin. A separate working
group was formed to review and comment on FIVA suggestions. It was important
to all participants that the Charter of Turin be structured as a unifying element for
all the different interest groups advocating for historical vehicles. Although current
law in Germany acknowledges the status of historical vehicles as cultural products
through the option of an “H” plate registration, the Charter of Turin has the potential
to serve as a political instrument toward worldwide recognition of the cultural status
of historical vehicles.
The Charter of Turin brings together all
the various historical vehicle interest
groups
H i s to r i c v e h i c l e s
216
Political Activities
Counterfeiting tarnishes the image of
historical vehicles
In recent years, the automotive industry has seen increasing trademark infringement relating to historical vehicles. This assumes its most outrageous form in the
complete or partial counterfeiting of historical vehicles. Naturally the counterfeiters,
who are often based outside the European Economic Area, focus on very rare and
valuable vehicles. Aside from the loss in value suffered by the originals as a result
of the fakes, the German automotive industry fears the overall image of historical
vehicles may be tarnished.
Some of the counterfeit vehicles have now become so sophisticated that even experts
have difficulty identifying them. Such vehicles are registered in Germany only if they
have an individual operating permit or type approval under the current 48 individual
directives. To circumvent this laborious process, they are often imported into Germany
via other EU member states in which registration procedures reflect a more streamlined application of the automotive type-approval directive. For this reason, a uniform
policy in all EU member states regarding the registration of such vehicles should
be pursued. An alternative way to end this unfortunate state of affairs is to issue a
general instruction to perform inspections pursuant to Section 21 StVZO (German
Road Traffic Registration Regulation) on all vehicles imported without a Certificate of
Conformity (COC).
Unauthorized production of replacement parts is widespread
But unauthorized production of replacement parts is also on the rise. This often has its
sources in Asia, where some enterprising automotive suppliers seeking new markets
are based. Small shops within the historical vehicle scene seeking to fill a need in
good faith are another source. Recently, some automotive manufacturers have taken
stronger action against such activities; they are motivated by a desire to preserve the
technical quality and visual attractiveness of rare vehicles, and to exclude potential
borderline warranty claim cases from the outset.
217
Some manufacturers are taking action. Daimler AG made a public showing of its
strong stance against trademark and copyright infringement by destroying (using
proper methods) an unauthorized counterfeit Mercedes Benz 300 SL “Gullwing” in its
own used parts center in April 2012.
The announcement of the new version of Directive 2009/40/EC was met with much
skepticism in the historical vehicle scene. The proposal to modify testing intervals for
older vehicles was especially unpopular. At the outset of negotiations and promptly
in time for discussion of the first drafts, commission members were informed of the
special needs of historical vehicles, with the result that the first official draft contains
potential exceptions and special national solutions for historical vehicles. The majority
of commission members indicated that they would not change the testing intervals. In
advance of final approval by the European Parliament, the VDA will attempt to have
the definition of historical vehicles used in the directive draft harmonized more closely
with German legislation.
The new REACH chemical regulation was issued within the EU in the form of
Regulation EC/1907/2006. REACH stands for Registration, Evaluation, Authorization
and Restriction of Chemical substances. The first phase resulted in identification of
more than 2,000 hazardous materials whose continued manufacture and use is being
thoroughly reviewed. By the end of 2012, around 100 chemicals had been noted on a
list of candidates whose further use and replacement were being reviewed.
The rising number of substances on the list promises to cause a major headache for
automotive manufacturers, especially in connection with supplying replacement parts
for older vehicles, such as historical vehicles. Accordingly, manufacturers would have
to use new materials to redesign any parts whose original materials had been prohibited, which isn’t economically feasible in light of the low demand. The removal and
destruction of existing stock is also unrealistic in light of the many small shops that
cater to historical vehicles.
Within the framework of the End-of-Life Vehicle Directive, the legislative authority allowed the “repaired as produced” maxim to be applied in similar cases. Under this solution, it would be possible to design and produce certain parts as originally intended. To
prevent use of historical vehicles from being effectively banned due to a lack of replacement parts, the VDA is attempting to effect a similar policy with regard to REACH.
Proposal to change testing intervals for
older vehicles widely rejected
New REACH chemical regulation
negatively affecting the supply of replacement parts
Logistics
Carina Jahn – apprentice technical product design, Valeo Klimasysteme GmbH, Bad Rodach
Lo g i s t i c s
220
Challenges Faced by Logistics
The logistics sector ranked third among
the most successful economic sectors
in Germany in 2012
With sales of around 225 billion euros and 2.85 million employees, the logistics sector
again ranked behind the automotive sector and trade in 2012, occupying third place
among the economic sectors in Germany with the highest sales figures (source: BVL).
This continued growth is attributable to the ongoing development of automotive value
chains. In recent years, characterized by growth and further globalization, logistics
experts have excelled at their craft. They successfully optimized logistics processes
even further, thereby ensuring the continuity and stability of supply chains.
The number and variety of new OEM parts increased to unprecedented levels in
2012. The more complex parts landscape led to increased requirements for parts lists,
supplying parts to production lines and container management. The “digital factory”
now includes the options of simulating production processes and virtually securing
new parts, making it ever more important in this landscape. The pressure remains
high for logistics experts as they deal with new sites and the associated increase
in global transportation; the landscape remains volatile, especially considering the
demanding expectations in terms of complexity and flexibility. The current focus is on
capacity management: synchronizing production planning and requests for delivery.
221
Results of Committee Work
The Logistics division supports many working groups and project groups. These bodies
include the working groups on Settlement Procedures, Packaging Center of Competence (CoC), E-12, Digital Factory, Communications and Information Technology (KIT),
Product Life Cycle Management (PLM) and the Logistics Steering Committee.
The VDA Logistics Division supports
many working groups
Establishment of an “automatic identification”
expert working group
VDA member companies will renew their activities on the topic of “Automatic Identification” of production materials with increased vigor. They intend to continue the
work begun in the VDA RFID Recommendations 5501, 5510 and 5520 (container
management; tracking of parts and assemblies; vehicle distribution), which were
produced between 2006 and 2008. Another objective of the new VDA committee is
to assess whether the results of the RAN project (RFID-based Automotive Network),
which was sponsored by the Federal Ministry for Business and Technology, have the
potential to bring about significant improvements in the processes between OEMs
and logistics service providers. If so, the results of the RAN project will be incorporated into VDA recommendations, taking into account national and international
documents and standards.
Activities on “automatic identification” of
production materials to move forward
The structure and precise name of the new working group will be finalized over the
course of 2013. In terms of subject matter, the new group will discuss unanswered
questions regarding process topics, flow of information and the technology of the
items being tracked.
Standardization, RFID-prototype tracking
Prototypes play a key role in the development of new vehicles by testing the functioning of parts and assemblies and ensuring they are ready for mass production. And
every part must be documented extensively. Parts undergoing testing must also have
a unique identifier, which means each must have its own serial number. In the past,
communicating and managing this information required considerable manual effort.
One approach to automating the process is the use of radio frequency technology
to label parts (RFID), either as an alternative or in addition to 2-D barcode labels.
Prototype parts identified with RFID transponders can be uniquely identified and
tracked at all stages, from production at the supplier’s premises to the sample
phase, to installation in test vehicles and during testing – all with a high level of
automation. This is one way the use of RFID technology supports quality assurance
in the development process.
Prototype parts equipped with RFID
transponders can be uniquely identified
in test vehicles
Lo g i s t i c s
222
The first version of VDA Recommendation 5509, which was published in early 2012,
describes the process of employing RFID and defines binding RFID data structures
for unique identification and tracking of prototype parts during parts and vehicle
testing. It also provides background information on applying international standards
and their implementation in the automotive industry.
In a second phase of the project, the use of 2-D barcodes was explored, as well as
options for automated data transfer. 2-D barcodes allow for inclusion of suppliers who
do not yet have the technical capabilities to use RFID technology.
For every part identified with a serial number, comprehensive information must be
exchanged between manufacturers and customers. The working group therefore
developed a harmonized catalog of the information required and regularly asked for
by vehicle manufacturers. This catalog was created using a data structure that can be
automatically exchanged between the parties involved.
Version 2 of the recommendation “Use of AutoID/RFID and data transfer to track
parts and components during vehicle development” was approved at the end of 2012;
it addresses the standardized use of the data matrix code – regardless of whether
RFID transponders or data matrix codes are used to uniquely identify the components. VDA-compliant identifiers are structured identically and allow prototype parts
to be identified regardless of the technology used. Moreover, the revised version of
the recommended electronic data exchange format offers the advantage of largely automating communication of prototype-related data and the capability to save
the information in electronic databases. By extending VDA Recommendation 5509,
the “Glass Prototype” working group bridged important gaps between media with
regard to the unique identification of prototype parts across company boundaries and
exchanging part-specific data within the automotive development process.
The confirmation of receipt
The confirmation of receipt ensures
that the exemption from turnover-tax
for goods delivered within the European Community is respected
The Federal Finance Ministry now requires an additional confirmation that goods have
been received; this was enacted in Section 17a of the Turnover Tax Implementation
Regulation (UStDV), which entered into effect on January 1, 2012. The confirmation
of receipt is intended to ensure that the tax office is aware that goods delivered in the
EU outside of Germany are not subject to turnover tax. The members of the Logistics
Steering Committee supported and assisted with the initiatives by the VDA and other
associations to obtain in the regulation a more straightforward, clear and practical
confirmation policy for intra-European Community deliveries – with success.
The draft of the eleventh Regulation to Amend the Turnover Tax Implementation Regulation (UStDV) dated October 1, 2012 demonstrates that the Federal Finance Ministry
has been responsive to the critique from the private sector regarding the legal and
practical problems posed by the current regulation. Companies are now no longer
required to document intra-European Community deliveries in the form of a confirmation of receipt. Going forward, other documents will suffice. The new documentation
policies are set to enter into effect on July 1, 2013.
223
Air freight security
Regulation (EU) No. 300/2008 of the European Parliament and of the Council on
common rules in the field of civil aviation security entered into effect on April 29,
2010. The transition period ended on March 25, 2013. The Regulation governs how
companies must proceed regarding air freight in civil aviation. In general, only air
freight with the status of “secure” (SPX or SCO) is permitted to be transported and
only in designated aircraft. Production companies that ship their products by air have
two options for achieving this security status. For one, “unsecure” air freight can be
declared “secure” after undergoing an inspection by a regulated agent or air freight
company in accordance with statutory requirements.
The manner of security inspection is to be determined by the regulated agent or air
freight company as appropriate for the type of air freight being inspected and according to statutory provisions.
The second option is to be approved by a government agency and be granted the
status of “known shipper.” Known shippers themselves assume the responsibility
of ensuring that the identifiable air freight on their business premises is sufficiently
protected from unauthorized access and tampering. The air freight of known senders
is not required to undergo another security inspection, but can be transferred “securely” to any company that has the status of a regulated agent.
It should be expected that the share of freight that is “unsecure” will spike sharply
after March 25, 2013. The comprehensive and strict implementation practices in
Germany could drive shippers of air freight to rely increasingly on airports in adjacent
countries. The important thing to remember is that standard freight is shipped over
land; this means that air freight only becomes air freight once it is warehoused as
finished goods. In turn, this means that those involved in shipping must be trained.
The Logistics Steering Committee maintains a dialogue with the relevant
authorities to provide feedback on practical experience by implementing the
regulation; it also collaborates with other associations to develop recommendations
for necessary alterations.
Air freight only permitted to be transported in aircraft if it has “secure”
status
Lo g i s t i c s
224
E-12 Working Group
Administration processes must be
improved and simplified for portal users
The E-12 Working Group deals with the use of portal applications to manage communications between customers and their suppliers. The increasing use of such portals
presents new challenges for suppliers. In 2012, the E-12 Working Group explored in
depth the question of how to more effectively structure maintenance of master data,
company structures and contact information in various customer portals. Performing
quality assurance of this data is key. The administration and approval processes of
suppliers must therefore be structured in an equally sophisticated manner.
The group also focused on the question of how to improve and simplify administration
processes for portal users in order to further increase security and compliance in the
use of portal applications.
Communications and Information Technology
Working Group (KIT)
KIT Working Group develops
recommendations on structured
data exchange
The KIT Working Group is mainly responsible for matters relating to technical communication of logistics information within the supply chain. Its activities in 2012 primarily
aimed at developing alternatives to past VDA recommendations on structured data
exchange that have now become somewhat outdated. New logistics concepts that
strive to reduce warehouse inventory, optimize transportation and increase process
efficiency are becoming more common. Accordingly, communications processes are
expected to meet heightened requirements.
Publication of VDA Recommendation 4984 “Data transfer of delivery requests” was
the first in a series of recommendations designed to provide optimal support for these
new concepts and processes. Two parallel technologies are supported. For companies with sophisticated infrastructure able to accommodated structured electronic
data interchange (EDI), the internationally recognized and widely used UN/EDIFACT
messages are recommended. The VDA working group based its work in particular
on the application manuals developed within the framework of the “Joint Automotive
Industry Forum” by the international automotive industry organizations (AIAG, JAMA/
JAPIA and Odette); this will ensure the broadest possible acceptance, both in Germany and globally.
To facilitate the transition to the new processes for smaller suppliers in particular,
the XML messages developed within the framework of the “auto-gration project”
sponsored by the European Commission are recommended in addition to the EDIFACT
Guidelines. Recommendations for just-in-time delivery requests, shipping notifications, and inventory and consumption messages will be processed in this manner by
2014, in order to support the entire process chain with uniform message formats.
Moreover, the KIT Working Group maintained close contact with representatives of
the RAN project (RFID Automotive Network) and learned about the results of this
initiative, which was sponsored by the Federal Ministry of Economic Affairs. Over the
course of 2013, it is planned to generalize the results of the project such that they can
be incorporated into existing VDA recommendations on the subject, and serve as a
basis for more in-depth recommendations.
Trade Shows and Events
Christina Hüttner – Dipl.-Betriebswirtin (FH), MBAL, Junior Manager Investor Relations, SAF-HOLLAND S.A., Bessenbach
T r a d e S h o w s a n d E v e n ts
228
Looking Back and Ahead: IAA
The 64th International Motor Show for
Commercial Vehicles (IAA) 2012 in Hanover
The 64th International Motor Show
for Commercial Vehicles (IAA) was a
complete success
Featuring more world premieres, more exhibitors, a larger area and more visitors, the
64th International Motor Show for Commercial Vehicles (IAA) was a high-energy event
– and a complete success. True to the slogan “Commercial vehicles – the motor of the
future,” this edition of IAA fully met expectations by “showcasing the entire industry’s
power of innovation as the world’s largest trade show for mobility, transport and logistics,” remarked VDA President Mattias Wissmann at the IAA closing press conference.
With 1,904 exhibitors and 262,300 visitors, IAA dramatically exceeded expectations.
Compared to 2010, this year’s IAA featured 9 percent more exhibitors and visitors. The
2012 International Motor Show for Commercial Vehicles (IAA) featured the secondhighest participation and exhibition area since the IAA Passenger Vehicle and Commercial Vehicle trade shows were separated 20 years ago. More than two thirds of suppliers
introduced world premieres – 354 to be exact – setting a new record for novel products.
In light of the difficult economic situation in Western and southern Europe in the year
leading up to the trade show, this result deserves even more appreciation.
The more than 1,000 suppliers
accounted for the largest group
of exhibitors
The exhibitors took advantage of this showcase to introduce their contributions to the
most important trends, such as Euro VI, aerodynamics, alternative drive systems, intelligent and predictive gear shifting, safety, lightweight construction, networking/telematics and extra-long trucks. More than 1,000 suppliers presented their wide-ranging
portfolio of innovations, making suppliers the largest group of exhibitors.
With exhibitors from 46 countries,
IAA for commercial vehicles has
never been a more international event
The IAA show has never been more international: IAA hosted exhibitors from 46 countries. Those from outside Germany accounted for 55 percent. Compared to previous IAA
shows, most foreign exhibitors were from China, followed by Turkey and Italy. More than
a quarter (27 percent) of trade visitors were from outside of Germany – a new record. In
addition to guests from the rest of Europe, one in five trade visitors hailed from Asia.
IAA set another record, with trade visitors accounting for 87 percent of all visitors. On
the weekdays the proportion of trade visitors even reached 92 percent. More than half
of the exhibitors were extremely pleased with the quality of the professional visitors.
The International Motor Show for Commercial Vehicles (IAA) consolidated its reputation as the forum for decision-makers, with 78 percent of trade visitors identifying
themselves as decision-makers.
IAA is becoming more international in terms of media coverage as well: 2,087 journalists from 56 countries reported on the latest models and innovations. Forty-four
percent of journalists came from outside of Germany.
The special exhibition program featured many activities in which visitors could actively
experience commercial vehicles. The “VDA Innovation Stage” hosted moderated demonstrations featuring vehicles related to safety and assistance systems, climate protection,
efficiency and securing cargo.
229
Test drives in electrical vehicles were offered on the trade show grounds for the first
time and were quite popular – visitors took full advantage of this opportunity, enjoying
1,500 test drives. Exhibitors made nine vehicles with full electrical drive available for
interested visitors to test drives in order to illustrate that electrical drive systems are
no longer restricted to passenger vehicles, but are making headway in commercial
vehicles as well. An opportunity was also offered to test drive 28 different lightweight
and heavy commercial vehicles.
IAA again had a strong offering for professionals, hosting 30 events for trade visitors
covering a wide range of topics and subjects. A total of 4,300 professionals took part
in the events for trade visitors, which covered topics ranging from securing cargo,
financial services, telematics, the Hazardous Goods Day, long-distance bus routes
and CO2 reduction, in addition to numerous award ceremonies. The Electromobility
Conference and the carIT Conference were held for the first time in the previous year
at the IAA for Passenger Vehicles and both made their premiere at IAA for commercial
vehicles this year.
After the successful show, it seemed that never before had so many new commercial vehicles been featured. Now 20 years after the first International Motor Show for
Commercial Vehicles (IAA) was held at the Hanover trade show grounds, the exhibition
continues to generate a constructive atmosphere; in no small measure this is due to
the great internationalism and many visitors who are professionals in the commercial
vehicles sector – and in many cases, potential customers.
The 65th IAA for commercial vehicles will be held from September 25 to October 2, 2014
at the Hanover trade show grounds. Once again, the “Press Conference Day in the CC”
and the “Press Day” will be held in advance of the conference on September 23 and 24,
2014, respectively.
Test drives in electrical vehicles
offered for the first time
Some 4,300 industry professionals took
part in the 30 events for trade visitors
T r a d e S h o w s a n d E v e n ts
230
IAA for Passenger Cars 2013 in
Frankfurt am Main
IAA for passenger cars is the most
important and influential automotive
exhibition in the world
This year, all automotive enthusiasts await the 65th International Motor Show
for Passenger Cars (IAA) in Frankfurt am Main with excitement. Visitors, industry professionals and journalists will again be able to experience a wide range of
world premieres and innovations at the world’s largest automotive exhibition, from
September 12 to 22, 2013.
IAA has been the most important and influential automotive exhibition in the world
for decades. Decision-makers from the international automotive industry meet
every 2 years at the Frankfurt trade fair grounds. IAA 2011 featured more exhibitors (1,012), larger area (235,000 mВІ), more world premieres (183) and more visitors
(928,100) than the previous IAA for passenger cars and exceeded all expectations.
In 2013, visitors can again look forward to seeing all the major passenger vehicle
manufacturers at the show, which along with all the suppliers promise to put on a
first-class automotive exhibition.
The slogan of IAA 2013 is “The world’s
best automotive show”
The spotlight will be on efficient vehicles that meet customer expectations in terms
of safety, environmental aspects, comfort, quality and design – in line with the show’s
slogan, “The world’s best automotive show.” Besides the many premieres, innovations
and showcased products, the extensive supplementary program secures IAA’s reputation as the central hub of the global automotive industry network. Experts from the
private sector, politics, trade associations and industry will discuss the key technical
and praxis-oriented topics of the future in symposia, lectures and expert panel discussions. A wealth of entertaining and informative events and campaigns for the general
public rounds out the program.
231
The special events program in 2013 promises to offer more variety than ever before.
The show will feature the test driving event, SUV test course and the classic car show,
as well as driving demonstrations and AvD and DVR contests, as well as a special
exhibition mounted by the German Red Cross. This year there will also be a Carrera
racetrack, the “Ladies Corner” in cooperation with “Hallo Frau,” a movie theater for
children, relaxation areas and an outdoor go-cart track. “Automania,” the exchange
for model car collectors, will take place on the last weekend of the show. All this in
addition to a wide range of events for trade visitors ensure there will be something for
everyone at IAA. The carIT Conference and Electromobility Conference are being held
for the third time, while the Safety Conference to be held in cooperation with ADAC is
a new event.
GoING – The next generation of engineers for
the automotive industry
The VDA has been collaborating for years with companies to promote the next
generation of engineers. The GoING project was established in 2007 and has been
offered during the second week of IAA ever since. The project provides a framework
for the VDA and its member companies to invite classes of students studying for
university entrance qualifications to visit IAA. The program is a success and many
students attend both the IAA for passenger vehicles in Frankfurt am Main and the
IAA for commercial vehicles in Hanover. Their teachers provide very positive feedback about the VDA’s role as event host, which is important since the teachers act as
multipliers and are instrumental in bringing their classes to the event year after year.
GoING already has some “veterans” – some teachers have accompanied class trips
to GoING for many years, which will be held for the seventh time in 2013. Along with
their teachers, nearly 1,000 students attend the lectures and visit the stands at each
IAA for Passenger Vehicles as part of the GoING program. The IAA for commercial
vehicles expects to host around 500 students, mostly owing to the shorter duration of
that show.
The event is always held daily from 10:00 a.m. to 2:00 p.m. during the second week
of IAA. It begins with a short lecture event with an opportunity for discussion. The
lectures comprise two presentations by young engineers on their practical experience
working at companies, and an introduction by a university professor.
WorkING – Career perspectives in the
automotive industry
In addition to the secondary students, the VDA also appeals to those already studying at university level with the goal of sparking their interest in technology and the
automotive industry. This project has been named “WorkING – Career perspectives
in the automotive industry.” WorkING is being held for the fourth consecutive time in
2013. The objective is to highlight career opportunities in the automotive industry. The
program is addressed to university students in the first half of their studies; this is in
order to target students who are still in the process of deciding which area to specialize in. WorkING is presented at IAA as a lecture event. Four or five company representatives introduce their companies, their products and their own jobs.
Strong demand for student events
T r a d e S h o w s a n d E v e n ts
232
The 15th Technical Congress 2012
Technological change was the
undercurrent of the conference
The 15th VDA Technical Congress was held at BMW World in Munich on March
21—22, 2013. More than 550 participants, keynote speakers and presenters drawn
from politics, the scientific community and industry met in the Bavarian state capital.
The keynote sessions at the outset of the conference included as speakers VDA
President Matthias Wissmann; Martin Zeil, Bavarian Minister of Economic Affairs,
Infrastructure, Transport and Technology; Dr. Herbert Diess, Head of Development
at BMW AG; and Wolfgang DГјrheimer, Head of Technical Development at Audi AG.
Claudia Horn, Head of Section in the German Ministry of Transportation, Construction and Urban Development (BMVBS), also gave a welcome address.
In his keynote speech, Prof. Emilio Frazzoli of the Massachusetts Institute of Technology ventured a look into the future of autonomous driving. Reiner Mangold,
Head of Sustainable Product Development at Audi AG spoke about the road to
CO2-neutral mobility. Prof. Dr. Hans-Hermann Braess, former head of science and
research at BMW AG, provided attendees at the conference’s main evening event
with some thought-provoking insights in his talk on “Alternative drive systems,”
which looked back on 60 years of automotive development.
The topic of “networking” was addressed by Dr. Christoph Grote, Managing Director
at BMW Forschung und Technik; Dr. Martin Weiser, Head of the Vehicle IT department at Volkswagen AG; and Dr. Peter E. Rieth, member of the management team
for the Chassis and Safety division at Continental AG.
In his keynote address, PD Dr. Peter Morfeld of Evonik Industries spoke about the
effectiveness of environmental zones in relation to particulate concentrations. The
trade exhibition featured 20 exhibitors from the entire automotive industry and
offered an ideal supplement to the presentation topics, while also serving as an
opportunity for conversations among industry professionals.
The VDA Technical Congress highlights the wide-ranging strategy of the
German automotive industry
The congress is conceived as a technical-political event and traditionally focuses
on the topics of environment, energy and electromobility, as well as vehicle safety
and electronics. Mobility and transport systems were also discussed, as were efforts
towards describing and quantifying the future potential of internal combustion drive
systems, which continue to remain important, especially in regards to minimized
emissions and electrification of the kompress. The sessions for trade visitors on
“Vehicle safety and electronics” focused on topics such as the real occurrence of
accidents, safety potential and automated driving.
The 16th VDA Technical Congress will be held in Hanover on March 20—21, 2014.
233
The 13th VDA Meeting of Small
and Medium-sized Companies
The 13th VDA Meeting of Small and Medium-sized Companies was held at the
Kameha Grand Hotel in Bonn, on May 23 and 24, 2013, with this year’s slogan, “Small
and medium-sized companies in the automotive industry: with new concepts into the
future?” With more than 250 distinguished guests from the private sector and the
political community, the event again offered prominent panels to promote constructive dialog between small and medium-sized company owners. The two-day event was
hosted by Arndt G. Kirchhoff, Managing Partner of the Kirchhoff Group and Chairman
of the VDA Group for Small and Medium-sized Companies.
Three of the event’s main topics
included mobility, globalization and
financing
The event critically examined the major challenges facing the companies, as seen
from their perspective: mobility, globalization and financing in the future. The presentations and discussions additionally touched on current topics, such as the shift
away from nuclear power in Germany; the euro crisis; difficult economic conditions in
Europe; increasing protectionism; and the threat of new tax burdens.
In his presentation entitled “Premium in global competition: how can we secure our
collective success?” Prof. Rupert Stadler, Chairman of the Board at Audi AG noted that
suppliers account for three quarters of value creation in vehicles. He also emphasized
that small and medium-sized suppliers contribute to Germany’s excellent reputation as
a site for automotive production. He advocated continuing the successful cooperation
now that additional vehicle models must be localized for growth markets. In his presentation, Heinz-Gerhard Wente, member of the board at Continental AG and head of
the ContiTech corporate division, mentioned that automotive suppliers can only remain
successful when their production operations are located where their customers are
working. In his dinner speech, VDA President Matthias Wissmann warned about new
tax burdens that would affect family companies in particular. Garrelt Duin, minister
of Business, Energy, Industry, Small and Medium-sized Companies, and Trades for
the state of North-Rhine-Westphalia discussed “Focus on small and medium-sized
companies – what is the state doing, what can the German federal government do?”
Duin noted small and medium-sized companies’ high potential for innovation and flexibility, and indicated that North-Rhine-Westphalia wants to structure the framework
for small and medium-sized companies such that they are able to optimally develop
their flexibility, speed and innovation potential.
VDA Managing Director Klaus Bräunig kicked off the second day of the conference with
an overview of the association’s current activities on behalf of this, the largest group
of members; participants were then invited to engage in detailed discussions during
three parallel workshops entitled: “New mobility concepts: how to secure the future of
small and medium-sized companies?”; “Cooperation between small and medium-sized
companies within global structures”; and “Growing with secure financing.” The keynote
speeches for the workshops were held by Prof. Dr. Burkhard Göschel, CTO at Magna
International Inc.; Klaus Mecking, member of the board at Friedrich Graepel AG; and
Frank Jehle, CFO at Mann and Hummel GmbH.
The undercurrent of the event was that to remain successful over the long-term, small
and medium-sized companies must promote their innovations and ensure their presence in international markets. Moreover, they must generate the financial resources
to enable them to pursue this strategy. As suggested by the overwhelmingly positive
feedback of participants, they made excellent use of the 13th VDA Meeting for Small
and Medium-sized Companies to engage in extensive discussion on these topics.
How can small and medium-sized
companies be present and successful
in international markets?
T r a d e S h o w s a n d E v e n ts
234
The 9th QMC Quality Summit at Hockenheimring
and Other Events Sponsored by the VDA Quality
Management Center
The event focused on quality management in relation to new technologies
and electromobility
160 participants made the 2012 summit
a complete success
The 9th QMC Quality Summit was held on November 14-15, 2012 at Hockenheimring.
As Germany’s most important quality event for the sector, many influential guests
were among the attendees. The many representatives from the automotive industry
were joined by Dr. Elmar Degenhart, Chairman of the Management Board at Continental AG, who gave a talk on electromobility. Consistent with the slogan of “New
quality strategies in times of change,” the event primarily addressed quality management for new technologies, and especially electromobility. These issues will present
the most significant challenges for the automotive industry over the coming years.
The test drive event also proved very popular. More than 50 vehicles with electric drive
were on-site and available to summit participants, who had the opportunity to take
them for a test drive. Many participants took advantage of the opportunity to experience and “mobilize” the “mobility of the future” firsthand. With 160 participants in
attendance, the 2012 summit was a successful event that offered discussion of interesting topics and insight into the most significant challenges the automotive industry
will face in the near future – along with a great deal of excitement on the test course!
Interauto Exhibition in Moscow
VDA QMC Russia participated in the “Interauto” and “Moscow International Automobile Salon” for the first time in 2012, presenting talks on quality management subjects
related to the Russian automotive industry.
Upcoming VDA QMC events in 2013
The Quality Management Symposium of the Automotive Industry was held on April
24—25, 2013 in Munich. The QMC hosted the “VDA Automotive SYS Conference”
on June 12—14, 2013 in Berlin. The VDA QMC Expert Forum will be held during IAA
from September 12 to 22, 2013 in Frankfurt am Main. The QMC Quality Summit will
convene on November 18—19, 2013 in Berlin.
235
VDA Logistics Department Events
Automotive Logistics Forum
The first edition of the Automotive Logistics Forum was held over two days from
January 23—24, 2013 at the MAN Truck Forum in Munich; it was presented as a joint
event by VDA and BVL (the German Logistics Association). Around 550 logistics
experts from the German automotive industry met to discuss the challenges facing the
sector, keeping in mind the theme of the event, “Mastering complexity.” Two events
held separately in the past – the Industry Automotive Logistics Forum presented by
BVL and the VDA Logistics Conference – have now been combined into a European
summit of logistics experts in the automotive industry.
Cloud computing was a focus of the
Automotive Logistics Forum in Munich
Forum participants had the opportunity to discuss ten different sequences of topics,
including aspects specific to the automotive industry, as well attending the main
presentations. The event hosted around 50 speakers and presenters, making it
a valuable and extensive program for industry professionals. The subject matter
focused primarily on a range of topics: cloud computing, aftermarket sales, packaging standardization, the digital factory, multi-modal transport, AutoID and RFID,
complexity and volatility, challenges facing the raw materials supply chain, cost
reduction, as well as shifting sales markets.
In addition to the presentations and discussions, attendees were able to participate
in exciting tours. MAN opened the gates to its truck factory in Munich. They were
also able to tour the MAN Parts Distribution Center, a central warehouse storing
27,000 articles that processes three million retrievals annually. The family company F.X.
Meiller Fahrzeug- und Maschinenfabrik-GmbH & Co KG also generously offered a
look inside its production facility in Munich.
VDA Logistics Award 2013
The VDA awarded BorgWarner BERU Systems GmbH the VDA Logistics Award for
2013. Each year this award recognizes innovative logistics concepts in the automotive
supply chain. This year’s winner (based in Ludwigsburg, near Stuttgart) received the
award at the Automotive Logistics Forum for its concept relating to “Automatic early
detection of supplier risks.” The automotive supplier has developed a fully automatic
system capable of making predictions about supplier performance and risks based on
advanced mathematical methods. The innovation grew out of a desire not merely to
respond to the loss of suppliers, but rather to be able to predict such developments.
By evaluating existing mass data using modern mathematical methods and artificial
intelligence, BorgWarner BERU is now able to proactively manage supplier performance and minimize risks in advance.
The new system, called “Supplier performance monitor 3.0,” draws on information about factors such as deliveries and a supplier’s track record for delivering the
correct quantity and meeting delivery deadlines. The system’s mathematical heart is
the “Hidden Markov” model used in stochastics. It allows for calculation of suppliers’
actual situation based on a range of data. The model is already being used in Internet
marketing and computer linguistics applications – and now BorgWarner BERU is the
first to apply it to business administration. BorgWarner BERU has already achieved
dramatic success with its new supplier performance monitor. In many cases, its use
increased supplier performance and dependability. In turn, this improves supply reliability and supply chain stability.
The VDA Logistics Award – which was conferred at the Automotive Logistics Forum
– gives outstanding and innovative logistics concepts the opportunity to become
exemplars and serve as inspiration to all companies striving to identify creative and
intelligent logistics solutions. Such concepts represent an important contribution to
improving the competitiveness of the German automotive industry.
The VDA Logistics Award recognizes
innovative logistics concepts in the
automotive supply chain
T r a d e S h o w s a n d E v e n ts
236
Trade Shows Abroad, Cooperative Events
Trade shows abroad, cooperative events
The VDA plans international activities
on a regular basis and is represented at
trade shows abroad
Within the scope of its international activities, the VDA again last year organized
a series of international events as well as participation at trade shows abroad. As
ever, the VDA focuses on the key markets of the future. For instance, every year the
VDA and its members seek out important trade shows abroad. The next step is to
cooperate with AUMA (the Association of the German Trade Fair Industry) to apply
for “German joint participations” offered within the scope of the foreign trade show
program sponsored by the German government.
Participation at the Russian trade show was an important foreign engagement in 2012
and marked the fifth time a German joint booth has been present. German suppliers once again demonstrated their close association with Russia at the Interauto
supplier trade show, which is presented in conjunction with the MIAS International
Automotive Salon. Even though it is difficult to successfully dominate this market,
Russia has enormous importance for the future of our industry in Europe. In a joint
event co-sponsored by the Federation of German Industries’ Committee on Eastern
European Economic Relations and the German-Russian Chamber of Foreign Trade,
the VDA hosted guests at a high-level information event held on the periphery of the
trade show. Representatives from the German industry were joined by representatives
of the Russian automotive industry, including some board members. To coincide with
participation at the trade show, the German Embassy also hosted a reception, which
turned out to be very popular.
Other events were held on-site in India in early 2012. VDA operated a joint booth at
the AUTOEXPO automotive trade show in India, marking the sixth time it has participated. The supplementary program included a range of events, including an information event held in conjunction with Roland Berger management consultants and
the Indo-German Chamber of Commerce (IGCC) as partners. There was also a large
reception at the German Embassy attended by the German and Indian automotive
industries and many guests from the Indian government.
Trade show appearances in China,
South Korea and Russia are on the
agenda for 2013
Participation at these trade shows abroad is under the aegis of a German government
program in which AUMA selects winning candidates from among submissions from
trade associations; this program gives many smaller companies a chance to present
their company and products in key future markets. Participation in trade shows
abroad in 2013 is planned for China, South Korea (Seoul Motor Show) and Russia
(COMTRANS). In 2014, the VDA will accompany its members to India, Russia (MIAS/
Interauto) and Thailand (Bangkok International Motor Show).
Additional foreign events have traditionally been held by the VDA at IAA. The 2012
International Motor Show for Commercial Vehicles (IAA) in Hanover had a special
focus on India, Turkey and China. Especially in the case of the IAA events, the presentations by the various foreign exhibitors are the key element, as well as cooperation
opportunities for exhibitors, speakers and visitors. The presentations are followed by
an opportunity to take part in round table meetings.
Another information event held at the VDA headquarters in April 2012 focused on
Colombia as an automotive center. Colombia is a rising automotive market and the
government is attempting to attract investors. A high-level delegation lead by the
Colombian Minister of Trade made a special trip to the VDA in order to meet with representatives of the German automotive industry to discuss opportunities for collaboration,
as well as obstacles to market access in Colombia. The free trade agreement between
the EU and Colombia will also present new opportunities for our members.
Index
Manfred Loibl – Auto Electrician Master, Prototyping Technican, Webasto Group, Gilching
Index
240
List of Figures and Tables
Dates, Facts and Figures
Turnover trend in the German automotive industry
Workforce in the German automotive industry
New motor vehicle registrations worldwide by region Long-term development of LV sales in the USA
Motor vehicle sales in China Passenger vehicle sales in India
Passenger car sales in Russia
Passenger car sales in Central and Eastern Europe
New passenger car registrations in Western Europe
New HGV registrations in excess of 6 metric tons in selected Western
European countries
New car registrations
Market share by country of manufacture
Development of mobility costs
Passenger car exports by country of destination 2012
Overall registrations of new commercial vehicles
Total motor vehicle domestic and foreign production and exports Turnover and employment in the automotive supply industry
Development in value added distribution by module
Europe remains an important region for automotive added-value
14
16
17
18
19
20
21
22
23
24
25
26
27
28
31
33
36
37
38
World Economy and World Trade
Exports are dependent on market access
Examples of high protective customs duties in important future markets
Examples of measures posing a challenge to Germany as a production location Average electricity prices for industry
EU comparison of industrial electricity prices
Natural gas prices for industry in the EU
Unit labor costs
Share of gross value added by industry in Europe
45
48
49
52
54
55
57
58
Climate and Environmental Protection Policy
Major success in reducing road traffic emissions: particulate emissions
62
Major success in reducing road traffic emissions: NOx emissions
62
Major success in reducing road traffic emissions: CO emissions
63
Major success in reducing road traffic emissions: HC emissions
63
New registrations by German manufacturers: CO2 emissions64
CO2 regulations in Europe
65
More reductions in long-term goal achieved rapidly
66
Tire labeling
72
Design of the label
75
Aerodynamic simulation using the generic semi-trailer model
76
Climate effect and damage caused to the ozone layer by coolantsa
78
Greenhouse gas emissions WTW
81
Objective of the natural gas mobility initiative 82
Purchase criteria for alternative drive systems
83
Development of exhaust-gas stages for diesel passenger cars
84
Technical measures for Euro 6
84
241
SCR vehicle inventory in Europe, only German brands
85
Customer-friendly availability of AdBlueВ®85
Accident frequency index of notifiable work accidents
86
Total energy consumption of German automobile manufacturers per vehicle
90
Total water consumption of German vehicle manufacturers
90
Solvent emissions of German vehicle manufacturers
91
Total waste of German automobile manufacturers
91
Moving away from Oil
92
Transport and Infrastructure Policy
Personal transport in Germany up to 2025
The first car of your own is something very special
Young people value cars
Goods transport in Germany
Growing traffic jam problem on German autobahns
Use of income from specific transport charges
Federal trunk road investment
Conservation of resources thanks to trucks
The rate of traffic fatalities on autobahns, international comparison
96
97
97
99
100
101
102
106
108
Taxes and Customs
Energy tax in Germany
Segment structure for company cars 2012
Overview of vehicle tax for passenger vehicles
Particle filter retrofitting 2012 and 2013 at a glace
115
118
125
126
Powertrain Engineering
Gasoline and diesel drive systems still have a long way to go
Clean Diesel
134
140
Vehicle Safety
Number of accident fatalities by road user type
Information flow in number plate inquiry
Introduction deadlines for AEBS in commercial vehicles (new types)
Theft protection statistics
145
147
154
155
Technical Specifications and Standardization
Decision by the EU Parliament on new limit values
VDA Materials Council
Rear field of vision from a vehicle
Fields of vision
172
176
182
183
Quality Management
The worldwide network of VDA QMC licensees
208
Historic Vehicles
German Classic Car Index
Classic car participation in accidents
213
214
Index
242
Index
A
Accident figures 144
Accident toll 108
Acoustic perception capability 150
AdBlueВ® 84
Aftermarket 202
Aftersales 190
Air-conditioning systems 78
Argentina 44
ASEAN 46
Association for the Promotion of Science in Germany
(Stifterverband der Deutschen Wissenschaft) 40
Automated driving 164
Automotive banks 192
Automotive Logistics Forum 235
B
Barriers to trade 47
Battery Electric Vehicle (BEV) 137
Biofuels 79
Bodies and buses 34
Brand and product piracy 197
Brazil 44
Building the network 52
Business trips 123, 124
Bus market 31
C
CarIT 159
Cars21 58
Car sharing 97
Car-to-Car/Car-to-I Communication 162
Car use 96
China 17, 45
City toll 104
Clean Diesel 140
CO2 emissions 62
CO2 reduction 15
CO2 regulations 65
Commercial vehicle market 30
Commercial vehicles 34, 148
Commodity prices 51
Company cars 117
Competitiveness 57, 59
Confirmation of receipt 222
Coolants 77
Crude oil 79
Customs 111
Customs duties 127
D
Dangerous goods 88
DAT 146
DAT report 190
Design patents 195
Diesel 26, 139
Diesel engines 134
Digital tachograph 184
Domestic production 28
Driver assist systems 145, 161, 164
Driving cycle 168
E
ECall 109
Eco-innovations 68
EEG levy 53
Electricity price 53
Electric vehicles 120
Electromobility 136
Emerging countries 39
Emissions 62
Employment 16
Energy costs 52
Energy transition 52
Environmental protection 90
EU environmental policy 89
EURO VI 105
Exports 28
Extenders (REEV) 137
F
Family companies 112
FAST 2025 - Future Automotive Industry Structure 38
Federal Ministry of the Environment 62
FMVSS 132
Foreign manufacturing 30
Foreign production 32
Foreign turnover 14
France 58
Free trade agreements 46
FTA 46
G
General safety regulation 174
GoING 231
Goods transport 98
H
Hybrid drive 135
I
IAA 228
iLUC values 80
Increasing tax 113
India 46
Indirect vision 181
Industrialization 58
Industrial policy 58
Infrastructure policy 95
Internal combustion engine 134
243
International Motor Show for Commercial Vehicles (IAA) 228
Investigating the aerodynamic characteristics 76
Italy 58
Q
QMC Quality summit 234
Quality management 206
J
Japan 46
R
R1234yf 78
Range-Extender 137
Rare earth elements 51
R&D expenditure 15
R&D expenses 40
REACH 87, 217
Recycling 90
Rescue data sheet 146
Research and development 15
Research Association of Automotive Technology (FAT) 149
Resource efficiency 89
RFID 178, 221
Road building 101
Russia 45
L
Leasing 192
Level of motorization 96
Light commercial vehicles 69
Light vehicles 18
Lightweight construction 90
Lithium-ion batteries 88, 180
Logistics 220
Long-distance 31
Long-distance coach travel 107
Longliner trucks 106
M
Main inspection 169
Malaysia 48
Market access 44
Materials council 175
Meeting of small- and medium-sized companies 233
Mercosur 48
Mineral oil tax 100
Motor vehicle tax 100
Multi-track strategy 138
N
Natural gas drive 138
Naturalistic driving studies 149
Networking 158
New HGV registrations 24
Noise emissions 170
NOX storage catalytic converter (NSC) 84
NPE 120, 136, 137
O
Oliver Wyman 38
P
Particle filter retrofitting 126
Passenger car toll 102
Passenger transport 96
Patent law 198
Peak tax balance scheme 114
Philippines 48
Plug-in hybrids (PHEV) 137
Premium strategy 28
Product piracy 195, 197
Protection against theft 155
Protectionism 44, 49
Prototypes 178
Public purse 200
S
Sales 188
Selective catalytic reduction 84
Self certification 132
simTD 162
Smart sourcing 38
South Korea 46
Sovereign debt crisis 56
Sovereign indebtedness 57
Standardization 175, 178, 179
Strategy 79
Super-Credits 68
Supplier industry 36
Suppliers 15, 233
Sustainability 79
T
Tax policy 112
Thailand 48
The building of filling stations 139
The charter of Turin 215
The Electromobility Conference 229
The fuel cell 139
Time-to-collision 153
Trade agreement 46
Trade barrier 44
Traffic safety 108, 209
Trailers 34
Training and continuing education activities 207
Truck toll 104
Turning off 148
Type approval 173
Type approval process 132
Index
244
U
USA 17, 47
Used vehicles 188
US market 18
V
VDA Cooperation Portal 39
VDA List of Manufacturers 39
VDA Logistics Award 235
VDA Rating Tool 41
VDA Supplier Round Table 39
VDA Young Business Owners Committee 41
Vehicle safety 143
Vehicle tax 124
Vintage vehicles 212
W
WLTP 168
WorkING 231
World trade 43
Imprint
PublisherVDA
Verband der Automobilindustrie e. V.
(German Association of the Automotive Industry)
Behrenstr. 35
10117 Berlin
Phone +49 30 897842 - 0
Fax +49 30 897842 - 600
[email protected]
www.vda.de
Editor
VDA Press Department
VDA Communications Department
Design
DANGEROUS. Berlin
Printing
DCM Druck Center Meckenheim GmbH, Meckenheim
ISSN 1869-2915
Copyright Verband der Automobilindustrie e. V. (VDA) 2013

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