Interview with Eric-Mark Huitema

Eric-Mark Huitema is the Director General of the European Automobile Manufacturers’ Association (ACEA), a position he has held since October 2019.

Prior to his ACEA appointment, he acted as Global Smarter Transportation Leader at IBM, where he focussed on optimised transport solutions for governments and smart cities, as well as the private sector. A Dutch national, Mr Huitema studied technical chemistry at Delft University of Technology and business and sales administration at INSEAD.

1. Could you share some information about your current priorities?

“The priorities of ACEA for 2020 include developing a pathway for the transition to carbon-neutral road transport by 2050, while ensuring the long-term economic sustainability of the European automobile industry. We are in the early stages of a complete reinvention of our industry. And new technologies, environmental challenges and stricter than ever regulatory demands will play a significant role in reshaping the future of our industry in Europe.

Our 16 member companies want to take the lead in transforming road transport in a way that puts the consumer first, but also enables our industry to remain resilient. Indeed, we believe that mobility must stay affordable for everybody and that we need to further strengthen the competitiveness of the sector.

At the very time when our members are massively stepping up investments in zero-emission vehicles, the market is set to contract. Not only in Europe but also globally, so the transition to carbon neutrality needs to be very well managed by policy makers. They should not forget that our industry is at the heart and soul of the European economy, providing millions of skilled jobs and leading the way in clean production and innovation efforts.”

2. How would you evaluate the global performance of the automotive market in 2019? Could you tell us your expectations for 2020?

“Overall in 2019, new-car registrations increased by 1.2% across the European Union, reaching more than 15.3 million units in total. This marked the sixth consecutive year of growth. Last year started on weak footing due to the lasting impact of the introduction of the WLTP emissions test in September 2018. Fortunately the final quarter of 2019, and December in particular, pushed the full-year performance of the EU market into positive territory.

However, we are facing a shrinking market now. ACEA forecasts that EU passenger car sales will drop by 2% in 2020. So, that would be the first fall in sales in seven years!

We see that there is a slowdown in the global auto industry, sales are also falling in other major markets such as the United States and China. For example, last year US light vehicle sales – which include cars, pickup trucks and SUVs – totalled 17,047,725 units, which is 1.3% lower than in 2018. And estimates for the US market in 2020 are in line with what we expect to see in the EU, so a drop of around 2% more or less.

On top of that, we are facing an extremely challenging geo-political environment at the moment. Following the 2016 referendum, the United Kingdom officially left the European Union at the end of last month. While we regret this, I am glad that a catastrophic no-deal Brexit scenario has been avoided for the time being.

Now we call on authorities to swiftly engage in discussions for an ambitious trade agreement. A deal that maintains zero tariffs, facilitates custom procedures and ensures continued regulatory alignment between the EU and the UK. Given the deeply connected nature of our manufacturing chain in Europe, it is crucial that trade between EU and UK remains as free and frictionless as possible of course.

At the international level, rules-based trading within the framework of the World Trade Organisation (WTO) is currently being challenged.  As you know, automakers rely heavily on global supply chains. We therefore require certainty and predictability in the trade of goods and services. That is why we are calling, together with our counterparts from the United States, Japan and Korea, on WTO members to swiftly resolve the current impasse that the WTO dispute settlement mechanism is facing. Finally, the WTO also needs to be modernised in order to better reflect the nature of globalised trade in the 21st century.”

3. What kind of developments do you expect in automotive technologies in the next ten years? What do you think will be the future technologies and which ones will stand out?

“All industry experts that I speak with agree that automated driving is a – if not the – major technological advancement that is changing how we travel and move goods. It is reshaping the future of mobility and transport as we speak. When fully integrated in the transport system and accompanied by the right supporting measures, automation is expected to make a major contribution to achieving some very important social goals as well.

Of course, there are different levels of automated driving, starting with technology that assists drivers in operating their vehicle and going up to levels that completely substitute the human driver by a system. But let’s leave technology aside for a moment, as I would like to focus on how automation will change people’s lives for the better.

First of all, let me stress that automated driving is a real paradigm shift that will change the way we experience road travel and transport. As automation further develops in the future, we as drivers and our passengers will progressively be able to enjoy new activities, such as reading, working or using an electronic device.

Eventually, as vehicles will become fully autonomous, the driver will no longer be required as a fallback. This will provide even more room for innovation in terms of combining mobility with entertainment. Indeed, automation is all about increasing our freedom and comfort, by allowing drivers to perform other activities when automated systems are active.

Secondly, and most importantly in my view, automated vehicles will enhance access to mobility for millions of people, by increasing the availability of passenger transport services while reducing the cost of moving around. This is especially valid in areas with low and dispersed demand, such as rural areas and suburbs, where the availability of professional drivers is typically low, or where bus routes may have disappeared over the years due to public spending cuts.

Furthermore, automation will offer access to mobility to people who are traditionally deprived of it, such as those with limited mobility and the elderly, who may be unable to drive themselves. For those people, automated vehicles will greatly improve social inclusion, as they provide them with increased access to healthcare, family and friends, work, city centres and remote locations.

Thirdly, automation makes a positive contribution to sustainable transport by offering new mobility solutions that can be integrated into a single Mobility as a Service (MaaS) ecosystem. Concretely this allows cities and regions to build a transport offer combining high-capacity public and private transport with individual solutions that respond to diverse and changing customer needs. Integrated mobility will help to deliver a truly user-centric, multi-modal offer of transport options.

The fourth major deliverable of automated driving is all about efficiency and the environment, because automation will reduce traffic congestion and increase the efficiency of our transport system. This will result in a decrease in fuel consumption and emissions, thus also addressing climate change and improving air quality.

Finally, automated driving will help to further improve safety on our roads. Indeed, automation is expected to greatly reduce the risk of human error in driving – which still is a major contributing factor in most accidents – thereby making an important contribution to the EU goal of zero road fatalities by 2050. Many of today’s active safety technologies (which prevent accidents from happening altogether or at least actively help the driver to reduce the impact) are already starting to prepare drivers and other road users for a future when vehicles will drive themselves.”

4. Could you evaluate the zero-emission plans of the sector?

“Well, one of the biggest drivers of change for policy makers and our industry is of course the need to address environmental concerns. Indeed, the new European Commission has made its Green Deal the centre piece of its work plan for the next years, with the aim of making Europe the world’s first climate-neutral continent.

As ACEA we believe that carbon-neutral road transport is possible by 2050. Automobile manufacturers want to do their part, and they fully support the aims of the Commission’s Green Deal. However, addressing the challenges ahead of us is a joint responsibility. It will represent a seismic shift, requiring a holistic approach with increasing efforts from all stakeholders.

Already today, our 16 members are making massive investments to deliver the recently-set ambitious 2025 and 2030 CO2 reduction targets, but our industry needs more legal certainty and long-term stability as it moves towards carbon neutrality in 2050. And that is exactly why we launched ACEA’s ‘10-point plan to help implement the Green Deal’ in January. Let me run through some of those key recommendations with you.

First of all, technological neutrality must be guaranteed in order to reflect the many different mobility needs of our customers throughout Europe. In practice, this means that policy makers should not impose specific technologies, nor ban vehicles that can still deliver CO2 reductions, in order to drive the best possible results.

Secondly, knowing that the average age of vehicles keeps rising year after year, a more holistic approach to carbon neutrality is needed that also tackles the use of all vehicles on our roads. This will require a smart combination of further improving the efficiency of vehicles – the so-called ‘tank-to-wheel’ CO2 emissions, which are our industry’s responsibility – and an increasing move towards low-carbon energy carriers to cover the ‘well-to-tank’ part of CO2 emissions.

Which brings me to our third key recommendation. With respect to alternative fuels, a dense network of charging points and re-fuelling stations must urgently be deployed across Europe, and it needs to be suitable for both passenger cars and commercial vehicles.

In my view, this is the single most important enabler for achieving carbon neutrality in the road transport sector. That is why ACEA believes that there should be mandatory targets for national governments as well as clear enforcement measures. They also need to take into account the requirements of alternatively-powered trucks, as their infrastructure needs differ greatly from those of passenger cars.

At the same time, we need to recognise that new low-emission technologies are expensive and will remain so for the foreseeable future. To ensure that the higher prices do not slow down fleet renewal, consistent and economically-sustainable incentives should be put in place for users of cars and commercial vehicles.

I am convinced that this is the most efficient way to accelerate the uptake of clean technologies across the board. Because the switch to carbon-neutral transport will only be successful if low- and zero-emission vehicles become the preferred choice for consumers – and especially for professional transport operators, who always look at the total cost of ownership.

And finally, let me emphasise that the transition to carbon neutrality must be very well-managed by policy makers. They cannot ignore the wider social and economic implications of this seismic shift. Mobility must remain affordable for all people, regardless of where someone lives or how much they earn.”