iva presentation

8/14/2019 Iva Presentation

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INDIVIDUAL VEHICLE

APPROVALIN EUROPE

HIVA-The Problem And A Proportionate Solution

A Presentation to Giacomo Mattino-Deputy Head of Unit -Automotive Enterprise andIndustry and Jean-Paul Delneufcourt-Chairman TCMV

Presented by Anthony Cohen Chairman AIAA

in conjunction with Dominic Ouvaroff-Joint Founder Member AIAAand Phillippa Hentsch-Parliamentary Assistant to Malcolm Harbour

Observed by Rosalind Travers-TABD EU Assistant Director


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American Cars, only imported by SMEs and

Individuals in very low volume, are arguablythe best American ICON in Europe.

2009 EU-U.S. Summit Declaration

To intensify our work under the Framework for Advancing Transatlantic EconomicIntegration and the Transatlantic Economic Council, including strengthenedregulatory cooperation in key sectors leading to reduced barriers to trade


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In Europe,

American Cars are

mainly bought by

enthusiasts and

collectors

In Europe,

American Cars are mainlybought by enthusiasts and

collectors in very lowvolume


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LEGAL OBJECTIVESenshrined in 2007/46/EC

High Safety and Environmental standards Simplifying regulatory environment action plan (Whereas No 27)

Proportionality/Subsidiarity (Whereas no 23)

Single Market rules

Small Business Act of Europe

Competition and Consumer Choice

It is of particular importance that future measures proposedon the basis of this Directive or procedures to be implemented inapplication of it should comply with these principles, which havebeen restated by the Commission in its communication on aCompetitive Automotive Regulatory framework for the 21stCentury-(Whereas no 28)

Extensive Stakeholder Consultation(CARS21)


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Good Government


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History of AmericanVehicles in Europe

! Imported since the Second World War!First imported by American Servicemen

! Legalised through German Einzelbetriebserlaubnis-STVZO

!American cars-mainly bought by enthusiasts & collectors

!American Car Clubs 50-UK 300 Europe!Micro-SMEs 100 UK 1000 Europe

!UK-low volumes as LHD in RHD market


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n urope,American Cars are

mainly bought by

enthusiasts and

collectors in very low

volume


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History of American

Vehicles in Europe

! Fragmented micro-SMES-no Manufacturer support

!UK SVA started in 1998 after Complaints to DG15!>250,000 FMVSS/CMVSS vehicles on EU roads

!No Safety and Environmental problems

!Very Low Volumes (UK circa 500) (Europe est.15-20,000)

!Volume split between M1 and N1 about 60%-40%! Service/parts/warranties/finance/insurance available

!ULTRA low volume with hundreds of potential models


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MR VERHEUGENSREMARKS TO THE EUROPEAN PARLIAMENT 4TH FEBRUARY 2009

Another thing that we can do to stimulate demand and to help and lead the motor industrythrough this crisis is to ensure that the conditions of international competition, too, are also notviolated. That is a question that must be directed at the United States, in particular. We will seewhat measures President Obama puts in place to counter the crisis in the US motor industry. Inthis respect, I would like to point out that it is not in Europes interest for the American

carmakers to go under. The consequences for Europe would be catastrophic if that happened.However, it is likewise not in our interest for the US to institute a policy that would favour itsmotor industry at the expense of competitors from other parts of the world. I hope that we willget the opportunity to discuss this calmly with our American friends.

A tariff barrier against cars from the US, Mr Louis, is definitively not something that we will beintroducing. If there is one thing we will not be doing, this is it. American cars play no real role in

the European market, whereas European cars play a large role in the US market. If there is avoice here in the European Parliament calling for us to protect our market against Americancars, I fear that there will be a voice in the US Congress in Washington saying that they shouldprotect their market from European cars. Our position would not look too good in such asituation. I would ask you in all seriousness not to pursue this idea any further.


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North American Automotive Safety


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2007/46/EC29th April 2009

ECWVTA

EC Small Series

Nat. Sm. Series

EC Citizen

NIVA

LargeManufacturer

SME

Volume Importer

One-size

fits all

Problem:2500 HHRs

Abuse byManufacturer

Equivalenceto the

greatestextent

practicable


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THE PROBLEMWhen will the loophole be closed, that currently enables thesale in the EU oflarge numbers of passenger cars via an

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

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

Large numbers of identical vehicles imported through National IVA(NIVA) byManufacturers

One-size fits all- Does NOT Work

Undermining of European Type Approval

Abuse ofreal Individual Vehicle Approval by MANUFACTURERSLOOPHOLE (Landwind, Brilliance, HHR)

Powerful lobbying of Commission by FIA MEP Questions in European Parliament

Problems for Technical Services in some MS with IVA because Manufacturers have beenallowed to use it for large numbers of passenger vehicles

By not adopting a proportionate solution, the Commission has over-riddenthe concept ofSubsidiarity


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Parliamentary questions

26 February 2008WRITTEN QUESTION by Othmar Karas (PPEDE)

to the Commission

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

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

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

Bearing in mind that Articles 22 and 23 (in conjunction with Annex XII, Part A, Sections 1 and 2) of Framework

Directive 2007/46/EC restrict the maximum number of small series vehicles of category M1 to 1 000 and 75

units respectively,it is unacceptable that vehicles which pose a serious risk to thesafety of EU citizens are still flooding into the European Union thanks toindividual approvals.

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

I E
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In Europe,

American Cars

are mainly

bought by

enthusiasts andcollectors in

very low volume


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Parliamentary questions

17 April 2008E-0959/2008

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

These measures will guarantee that all vehicles built within, or imported into, the European Union will provide the same level

of safety or protection of the environment.In the meantime, the current Framework Directive on type-approval, whichexcludes the individual approval scheme from its scope, continues to apply. This means that Member States still have thepossibility to grant individual approvals on the basis of their national legislation until 29 April 2009. On this basis it is stilllegal to import into the European Union new vehicles which would not comply entirely with the Community legislation in thisrespect.

Instead, it is up to the Member States to ensure that those vehicles do not constitute arisk for road users. The Commission is not aware of the fact that several thousandvehicles of the General Motors brand Chevrolet have been marketed in the

Community on the basis of one single approval delivered in one Member State.

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

On grounds of the information provided by the Honourable Member, the Commission will investigate the matterfurther.
http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2008-0959&language=EN#def1http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2008-0959&language=EN#def1http://www.europarl.europa.eu/sides/getDoc.do?type=WQ&reference=E-2008-0959&language=ENhttp://www.europarl.europa.eu/sides/getDoc.do?type=WQ&reference=E-2008-0959&language=EN


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Draft proposal for

HIVA

ECWVTA

EC Small Series

Nat. Sm. Series

HIVA

LargeManufacturer

High Volume

Importer

LargeManufacturer

Problem:Technical bar raised

beyond capabilityof genuine IVA

for Citizen or SME

OnlyManufacturer

can comply


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No Consultation, Better

Regulation, Simplification or Impact

Assessment

No SME/Public Consultation

No Proportionality- Sledgehammer to crack a nut

No Transparency-IVA is for SMEs/Citizens

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

NoTargeting-Only deal with the Problem

No Regulatory Impact Assessment or Simplification


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LEGAL PROBLEMSwith HIVA for SMEs/Individuals

Proportionality X Unintended consequences

Article 30/WTO X Age/Standards-distortions

SBA 2008-SMEs X Beyond Capabilities

Competition X No SME importers

Consumers X No Bespoke Vehicles Subsidiarity X National Preferences

Safety/Environment X Vehicles in parc now


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POTENTIAL COSTS OF HIVAfor SMEs/Individuals

> 1,000 longstanding SMEs fail in domino effect

circa 5000 Unemployed directly

Additional unemployment in multiplier effect

Serious safety and environmental effects >250,000 FMVSS/CMVSSvehicles on EU roads

Significant effect on personal freedom of choice Significant effect on Transatlantic cultural ties/Clubs/lifestyle trend

since 2nd World War

Encourages import of older vehicle technologies with negativeeffect on safety and environment

THE PROBLEM


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THE PROBLEMRESTATED

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

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

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

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

No one-size fits all-DOES NOT WORK

Undermining of European Type Approval

Abuse ofreal Individual Vehicle Approval by MANUFACTURERSLOOPHOLE (Landwind, Brilliance, HHR)

Powerful lobbying of Commission by FIA

MEP Questions in European Parliament

Problems for Technical Services in some MS with IVA because Manufacturers have been allowed touse it for large numbers of passenger vehicles

By not adopting a proportionate solution, the Commission has over-riddenthe concept ofSubsidiarity


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OBJECTIVES FOR

FAIR SOLUTION DEAL WITH THE PROBLEM-simply and quickly

Respect PROPORTIONALITY/ SUBSIDIARITY

Maintain High Safety and Environmental standards

Follow principles of Better Regulation

Single Market rules

Small Business Act of Europe/ Simplification Plans

Competition and Consumer Choice

Transatlantic Relationship


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Proportionality For SMEs and Citizens importing enthusiast andcollectible vehicles built to North American Standards, itis only possible to demonstrate equivalence to the

greatest extent practicable This technical benchmark isthe LEGAL BOUNDARY of PROPORTIONALITY.

Commission MUST maintain Article 24 For SMEs and Citizens Harmonised regulations are

consequently in breach of Whereas 23 that says Inaccordance with the principle of proportionality, as setout in that Article(5), this Directive does not go beyondwhat is necessary in order to achieve this objective.


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Subsidiarity By exceeding the LEGAL BOUNDARY OF

PROPORTIONALITY in the draft IVA

(equivalence to the greatest extent

practicable) for SMEs and private citizens(very low volume imports) the removal of

the principle of subsidiarity from Member

States is not justified under

Article 5 as amended by

Article 3b in the Lisbon

treaty.


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NO NEED TO LEGISLATE

for Individuals and SMEs Commission has ignored the fact the

Member States have spent 3 years

developing IVA under Article 24 inCONSULTATION with SME Stakeholders-

NO problem since 29th April 2009

Need to Amend 2007/47/EC to preventManufacturers from using and abusingNational IVA


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From the office of Malcolm

Harbour 13th January 2010

Malcolm Harbour was the original "Rapporteur"in the Parliament on the type approval regulation

and therefore knows the issues very well - thedevelopment of this standard should only beused to enhance safety and quite clearly, as youhave explained, American cars are manufacturedto the same high standards as Europe and lowvolume imports should be excluded. This wasnever the intention of the legislation.

Cars21 Recommendation over- prescriptive regulations should be avoided.

P ibl


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PossibleA roaches

Numerical Limits X-very difficult to administer

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

Amend 2007/46/EC-simplest solution -

Prevent Manufacturers from using IVA


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SOLUTION 1Amend Article 22

ECWVTA

EC Small Series- COC

Nat. Small Series

Large Manufacturer

NIVA

EC Citizen

SMEs

Could amendArticle 22

EC Small Seriesto include importsfor Manufacturers

Real IVA as perArticle 24 Wording.

Subsidiarity maintained

with regulationclose to SME/Citizen

Only availablefor Official

Importer/Manufacturer

Not available toManufacturers.

Low chance ofabuse

MaintainSubsidiarity forall cars up to 10

years old


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SOLUTION 2HIVA + NIVA

New Article 24A or Amend Annex

ECWVTA

EC Small Series- COC

Nat. Small Series

HIVA-COC

Large

Manufacturer

NIVA

EC Citizen

SMEs

Technical bar canbe very high for

mass volumeprevent

Landwind/Brillianceproblem.Prevent HHR abuse

Real IVA as perArticle 24 Wording.

Subsidiarity maintained

with regulationclose to SME/Citizen

Only availablefor Official

Importer/Manufacturer

Not available toManufacturers

Low chance ofabuse


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SUBSIDIARITYSCALE OF VEHICLE APPROVAL

All COCVehicles

Small NationalManufacturers

Multi-NationalManufacturers

SME

Citizen

All HarmonisedRegulations inc

HIVA ?

> 99.8%Parc

NationalRegulation

close to theSME/Citizen

Huge SingleMarket Benefits

National Regulationachieves

proportionalityrespecting MSunique safety

and environmental

objectivesMutualRecognition


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Benefits of Solution

High Safety and Environmental standards maintained Low Risk of Abuse-SMEs/Individuals only import in very low volume

Subsidiarity Respected- Regulations are targeted at correct level

CONSISTENT approach for all low volume imports


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In Europe,

American Cars are

mainly bought by

enthusiasts andcollectors in very

low volume


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