European Auto Industry Tussling to Remain Competitive

The auto industry market shares concerns regarding global warming and is adding aggressively to discover considerable solutions. During 2011 model year, the average emissions were 136.6 gram CO2 per kilometer as compared to 186 gram CO2 per kilometer in 1995, which is nearly 26 percent decline over the period.

It is quite clear that CO2 levels from cars have to carry on their descending tendency and auto industry is dedicated to deliver this. Reaching an average fleet emissions target of nearly 95 g CO2/km for vehicles and 147 g CO2/km for passenger vans by 2020 is in fact really challenging task.

This is partially due to the present economic climate, with a regular decline of sales of the latest cars in the European market for the last 5 years, which directly translates into more restricted budget for investments in advanced technological R & D (Research and Development). The outlook of the auto industry as one is gloomy at present.

In 2012, new vehicle registrations are anticipated to reduce by almost 7 percent as compared to 2011 sales numbers, and car sales are expected to fall from 13.1-million to 12.2 million, which is a record low ever since 1995. Attaining these goals is also really testing, as it is very difficult to achieve required market uptake of latest technologies.

To realize the proposed fleet averages, the automotive industry will have to shift more strongly towards advanced electric and hybrid power-trains. Without a considerable share of these substitute engine systems across the whole fleet, the proposed goals are plainly not attainable. But, it is not simple to obtain widespread consumer reception for these latest technologies.

The European auto manufacturing industry offers jobs and steadiness for the economy. In fact, nations with a strong production base have battered the present crisis much better than others. Therefore, it is very important to maintain this strategically significant business in Europe. Considering the fact that most of the car manufacturers are at the moment losing considerable amount of money, the business demands as aggressive a framework as feasible.

The EU requires a competitive innovative industry to preserve its leadership capability upright. That is the major reason, why targets should be practical and why the general regulatory structure, and market situation should be supportive. Opposing to some claims, the proposed objectives for the European fleet are really far tougher compared to those in the China, United States, or Japan.

This situation will certainly increase production costs in the European market, generating competitive drawback for the area and also slowing the restoration of the fleet.