7/4247-SYN-CCFA-GB-COUV-7/9 11/09/06 23:12 Page 1 26 PARIS MONDIAL DE L’AUTOMOBILE SEPTEMBER 30 TO OCTOBER 15 PORTE DE VERSAILLES - EXHIBITION CENTER Tuesday to Friday: 10:00 a.m. to 10:00 p.m. Saturday, Sunday, Monday: 10:00 a.m. to 8:00 p.m. The French Automotive Industry – Industry Automotive The French 2006 Edition 0.34 including VAT per minute) 0.34 including VAT € Tickets: www.mondial-automobile.com - Tel.: 0892 700 891* (France only) (* Also available from Auchan, Carrefour, Cora, Fnac, Géant, Leclerc and Virgin Megastore outlets Combined RATP/Mondial de l’Automobile tickets. 7/4247-SYN-CCFA-GB-COUV-7/9 11/09/06 23:12 Page 2 COMITÉ DES CONSTRUCTEURS FRANÇAIS D’AUTOMOBILES Comité des Constructeurs Français d'Automobiles (CCFA) is the French automobile manufacturer’s trade asso- ciation. It has seven members; Alpine, Automobiles Citroën, Heuliez, Panhard, Automobiles Peugeot, Renault and Renault Trucks. Its mission is to study and defend the business and industrial interests—excluding labor CONTENTS issues—of all French automobile manufacturers at both the national and international levels. CCDA’s activities encompass information, analysis and communication for its members as well as for govern- 01 Editorial: ment agencies, public officials, the media and the general public. To keep our industry Other sectors of the automotive industry—parts and equipment manufacturers, dealers, body manufacturers, healthy, we have to remain etc.—have their own trade association (FIEV, CARCOSERCO, CNPA, Fédération des Industries Mécaniques, competitive in our market, which is Europe, Fédération de la Plasturgie, etc.). Manuel J. Gomez, Foreign manufacturers are represented by their own association (CSIAM). Chairman, CCFA CCFA is associated with the Brussels-based ACEA, the European Automobile Manufacturers Association. It is also a member of OICA, the International Organization of Motor Vehicle Manufacturers, which brings together ANALYSIS AND national associations representing the industry from around the world. HIGHLIGHTS 04 World 12 Europe 21 France CHAIRMAN STATISTICS Manuel J. Gomez 46 World VICE CHAIRMAN 49 Europe Serge Gregory 56 France ECONOMICS, STATISTICS COMMUNICATION INTERNATIONAL AFFAIRS AND TRANSPORTATION Laurence Massenet Jean-Pierre Mercier Pierre-Louis Debar ROAD SAFETY TAXATION/LEGAL AFFAIRS TECHNICAL SERVICES Stéphanie Hubert Perreau de Saint-Germain André Douaud PERSONNEL AND ADMINISTRATION Marc Porée Like its members, Comité des Constructeurs Français d’Automobiles constantly focuses on three critical commitments–sustainable mobili- ty, road safety and environmental stewardship. Our latest publication, Air Quality, discusses the work performed by official organizations on the Euro 4 emission standards, which recently came into force for all new passengers cars. The findings show that the percentage of emis- sions from road transportation has been decreasing steadily and that the pollution cau- sed by today’s vehicles has decreased tenfold compared to vehicles from the early 1990s. (Publications can be downloaded from the CCFA Web site or requested by calling +33 (0)1 49 52 51 24). This brochure was produced by CCFA, 2, rue de Presbourg 75008 Paris, France Tel.: +33 (0)1 49 52 51 00 – Fax: +33 (0)1 47 23 74 73 – Web site: www.ccfa.fr – E-mail: [email protected] Design and printing : - Photo credits: Peugeot, Citroën, Renault, Renault Trucks, Getty Images 7/4247-SYN-CCFA-GB-1-20//8/9 11/09/06 22:28 Page 1 “TO KEEP OUR INDUSTRY HEALTHY, WE HAVE TO REMAIN COMPETITIVE IN OUR MARKET, WHICH IS EUROPE.” Mr. Gomez, how would you describe 2005, in an environment shaped by slower sales in Europe and an increase in raw materials prices? Manuel J. Gomez: There were both positive and negative aspects. In the European market, which comprises both the 17 “older” countries and the new entrants, demand was flat in the 17-country Europe. With 14.5 million new passenger cars registered, the outlook has not changed since 1999 and is unlikely to improve in the future. The new entrants offer some poten- tial, but volumes remain low, at 750,000 passenger cars in 2005. That’s a Manuel J. Gomez decline of 9% from 2004 and equal to 5% of the Western Europe market (or Chairman, CCFA less than half the Spanish market last year). Another negative, or at least uncertain, factor was the increase in raw materials prices, which raised +50% manufacturer costs by several hundred million euros. At a time when GROWTH higher fuel prices were already significantly increasing the household IN PRODUCTION transportation budget, it was difficult to pass on these increased costs in BY FRENCH AUTOMOBILE sticker prices. The last negative factor was the cost of implementing Euro 4 MANUFACTURERS emissions standards. SINCE 1997 (SEE PAGE 4) What about the positive aspects? M.G.: The market’s growth prospects now lie far from the traditional spheres of influence of the established automobile manufacturers. This is 6 MILLION positive because the global market expanded by more than 4% in 2005, VEHICLES PRODUCED while the European Union, the United States and Japan remained practi- BY FRENCH AUTOMOBILE cally stable. In fact, business outside Europe represented 28% of French MANUFACTURERS IN 2005 manufacturers’ unit sales in 2005, a percentage that will continue to grow (SEE PAGES 22 AND 56 TO 59) in the future. The domestic manufacturing base is still intact, however, pro- ducing 3.5 million units in 2005, including 3.2 million by French makes. Another positive factor concerns light commercial vehicles, one-third of 53 PLANTS which are French, versus only a quarter of passenger cars. I would also OPERATED BY FRENCH point out the benefits of competition, which offers a highly stimulating envi- AUTOMOBILE MANUFAC- ronment in which French manufacturers can express their creative talent— TURERS WORLDWIDE in a wide variety of body styles and technological solutions, environmental (SEE PAGE 21) performance, safety features, fast-paced new model launch cycles, etc. 1_ANALYSIS AND HIGHLIGHTS COMITÉ DES CONSTRUCTEURS FRANÇAIS D’AUTOMOBILES 7/4247-SYN-CCFA-GB-1-20//8/9 11/09/06 22:28 Page 2 “FOR LEGISLATION THAT REFLECTS THE SPECIFIC CHARACTERISTICS OF THE AUTOMOTIVE INDUSTRY AND ITS MARKET.” You mentioned the cost associated with stricter standards. 3 OUT OF 4 Is compliance a particular burden for French automobile manufacturers? VEHICLES PRODUCED BY M.G.: It’s time to stop making statements that are divorced from economic FRENCH AUTOMOBILE reality. I’m talking about pollution, where the greatest progress has been MANUFACTURERS ARE made by the road transportation industry, though it’s considered by many SOLD OUTSIDE FRANCE to be the worst offender. Cars are cleaner than ever. The industry is healthy (SEE PAGE 23) too, but to keep it that way, we have to remain competitive in our market, which is Europe. Unfortunately, our industry suffers from exceptionally heavy taxation, politically correct environmentalism, and a myriad of regu- lations that are stricter in Europe than the rest of the world. Clearly, you have to wonder whether the environmental benefits are worth the regulatory bur- 10% den when you realize that in France, where most cars are small or mid- OF FRENCH PEOPLE sized, new vehicles are already practically emission-free. That means the IN EMPLOYMENT playing field with non-European countries isn’t level. We would therefore like WORK IN THE to have a more consistent regulatory framework, with legislation that is more AUTOMOTIVE aligned with the specific nature of the automotive industry, and more adapt- INDUSTRY (DIRECT ed to the characteristics of a globalized marketplace. AND INDIRECT JOBS) (SEE PAGE 44) What are you thinking about in particular? M.G.: Since 1970, we’ve had eight different environmental directives, each one legislating a 50% reduction in emissions compared with the previous level. And every time, automobile manufacturers have met the new stan- dards, because they’re in the business of turning challenges into opportu- nities. But not all of the manufacturers are competing on equal terms. France is primarily a market of small and mid-sized vehicles, which have to 1OUT OF 4 meet the same regulatory requirements as larger vehicles. In other words, VEHICLES SOLD the French automobile industry is more adversely affected than others. As IN THE ENLARGED a result, it makes no sense to try and exceed the Euro 5 standards appli- EUROPEAN UNION cable in 2009. By then, gasoline and diesel-powered vehicles will be virtu- IS A FRENCH MAKE ally emission-free, and trying to cut emissions any further would impose an (SEE PAGES 13 undue burden for an almost imperceptible gain. Automobiles are extreme- AND 17 TO 19) ly complex products governed by strict rules, in terms of design, purchase, use and recycling. All of these rules must remain compatible not only with production demands, but also with sticker prices. Because if the costs can- not be passed on to the consumer, they weigh on margins across the indus- try. We are therefore calling for legislation that reflects the specific charac- teristics of the automobile industry and its market. 2_ANALYSIS AND HIGHLIGHTS COMITÉ DES CONSTRUCTEURS FRANÇAIS D’AUTOMOBILES 7/4247-SYN-CCFA-GB-1-20//8/9 11/09/06 22:28 Page 3 “OVERTAXING AUTOMOBILES IS COUNTER-PRODUCTIVE.” That’s a call that also concerns mobility, an extremely hot topic these days. M.G.: The average number of kilometers driven by French drivers has declined slightly, bringing about a corresponding decrease in fuel consump- tion and emissions. But for destinations within France, the automobile is still the primary means of transporting goods (81%) and passengers (88%). 88% OF Despite all the anti-automobile policies, these percentages show that the PASSENGERS automobile is still preferred as the most effective means of transportation, AND even in urban areas. That’s because cars provide an irreplaceable service, 81% not only because of their intrinsic benefits—carrying capacity, availability, OF GOODS door-to-door convenience—but also because they are the only means of TRAVEL BY ROAD transportation capable of responding to the growing number of increasingly FOR DESTINATIONS WITH- complex journeys demanded by today’s lifestyles.