European Government Support for the Auto Industry

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CONTENTS Summary ..............................................................................................................................................6

The automotive sector is a key strategic industry .................................................................... 7

EU level response .......................................................................................................................... 9

Industry support offered by the governments of France, Germany, and the UK, Russia and Turkey ..................................................................................................................... 9

Research and Development ....................................................................................................... 11

EU R&D Grants ......................................................................................................................... 11

In Summary ............................................................................................................................... 12

The European Light Vehicle Market – An Overview .................................................................. 13

The EU automotive industry - A key driver for the European economy ............................ 13

The European Automotive Sector in 2011 and outlook for 2012 - IHS Automotive ......... 13

Light Vehicle Production by Country/Region 2010........................................................... 16

Light Vehicle (<6.0t) Demand: passenger cars.................................................................... 17

Light Vehicle (<6.0t) Sales in Europe 2002-2010 ............................................................... 18

Global Vehicle Sales 2011 ........................................................................................................ 18

EU Wide Programmes and Support ............................................................................................... 19

EU Support for the vehicle manufacturers and component companies ............................ 19

European Investment Bank (EIB) ......................................................................................... 19

European Globalisation Adjustment Fund (EGF) ............................................................. 20

Clean Vehicle Europe .............................................................................................................. 21

European Union Funding for Clean Vehicles ...................................................................... 21

National Clean Vehicle Support Instruments ..................................................................... 22

France ............................................................................................................................................. 22

Environmental labelling ......................................................................................................... 22

Electric Vehicles ...................................................................................................................... 23

Biofuels ..................................................................................................................................... 24

Germany ....................................................................................................................................... 24

Fiscal incentives ...................................................................................................................... 24

Electric Vehicles ...................................................................................................................... 25

Regulative incentives ............................................................................................................. 25

Funding ..................................................................................................................................... 26

CNG vehicles ............................................................................................................................ 26

Sweden ........................................................................................................................................... 27

Fiscal Incentives ....................................................................................................................... 27

Funding ..................................................................................................................................... 28

Regulation ................................................................................................................................ 29

European Government Support for the Auto Industry

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UK .................................................................................................................................................. 29

Fiscal Incentives ...................................................................................................................... 29

Funding ..................................................................................................................................... 30

Regulations ............................................................................................................................... 31

Spain .............................................................................................................................................. 32

Fiscal incentives ...................................................................................................................... 32

Funding ..................................................................................................................................... 33

Regulation ................................................................................................................................ 34

DRAFT National Governments’ Support for the Automotive Industry ................................ 35

Introduction ................................................................................................................................. 35

Response to the economic and financial crisis 2008 ........................................................ 35

The European Response ......................................................................................................... 35

Review of key support schemes in selected European Countries .................................. 37

National Response to the international financial crisis ................................................... 37

France ............................................................................................................................................ 37

Special Assistance Programme .............................................................................................. 37

FMEA ......................................................................................................................................... 38

Germany ....................................................................................................................................... 40

Fiscal incentives .......................................................................................................................41

KfW.............................................................................................................................................41

Export Credit Guarantee Scheme (Hermes) ...................................................................... 43

Incentives for R&D projects .................................................................................................. 43

German Government Electric Vehicle Programme (Nationale Plattform Elektromobilität) .................................................................................................................... 43

UK .................................................................................................................................................. 44

Regional Growth Fund (RGF) ............................................................................................... 44

Department of Business Innovation and Skills (BIS) ....................................................... 44

Low Carbon Vehicles .............................................................................................................. 45

Other UK government Schemes .......................................................................................... 47

R&D Incentives ........................................................................................................................ 51

Russia ............................................................................................................................................. 54

Government support for the automotive industry........................................................... 54

Turkey............................................................................................................................................ 55

The automotive industry ....................................................................................................... 55

Government support for the automotive sector ............................................................... 56

DRAFT Research and Development ............................................................................................ 58

Investment in R&D by the world’s vehicle manufacturers ................................................. 58

European Government Support for the Auto Industry

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European automotive investment in R&D ........................................................................ 58

Patent Applications in the European Automotive sector in 2010 .................................. 58

R&D and Tax Incentives for R&D ........................................................................................ 59

European Commission support for R&D projects............................................................. 62

EUREKA .................................................................................................................................... 62

Collaborative R&D .................................................................................................................. 67

CARS 21 ..................................................................................................................................... 68

DRAFT Car scrappage schemes ...................................................................................................... 72

European Government Support for the Auto Industry

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LIST OF TABLES AND FIGURES Table 1: Current government incentives and support available to the automotive industry in selected countries in Europe: Summary ................................................................................... 9 Table 2: Light Vehicle Production by Country/Region 2010 .................................................... 16 Table 3: Investments and expansions in the UK automotive sector in 2011 ........................ 52 Figure 1: Automotive Sector turnover as a percentage of GDP 8 Figure 2: Light Vehicle (< 6.0t) Production in Europe 2002-2011 ............................................14 Figure 3: Medium/Heavy (> 6.0t) Vehicle Production in Europe (2002-2011) ...................... 15 Figure 4: Global Light Vehicle (< 6.0t) Production 2002 - 2011 ............................................... 15 Figure 5: Global Passenger Car Production (Market Share) 2010 ............................................ 17 Figure 6: Automotive Council UK: Technology Roadmap ....................................................... 49 Figure 7: Direct and indirect government funding of business R&D and tax incentive for R&D, 2008 ........................................................................................................................................ 60 Figure 8: Direct and indirect government funding of business R&D and tax incentive for R&D, 2009 ......................................................................................................................................... 61 Figure 9: Business R&D intensity and government support to business R&D, 2009......... 62 Figure 10: Focus of policy – challenges and targets beyond 2010 ........................................... 64 Figure 11: Governance of publicly funded automotive research; consultation vs. degree of centralisation ................................................................................................................................... 65

European Government Support for the Auto Industry

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