ACEM Deplores Impact Assessment

Motorcycle Industry deplores that IMCO impact assessment did not cast any light on the effects of new motorcycle legislation

The IMCO Committee rejected today the conclusions of the impact analysis study (IAS) carried out by London Economics on behalf of the European Parliament on the compromise amendments regarding the Regulation of L-category vehicles.

Brussels, 28 February 2012 – Following the vote that took place last 5th December in the Committee for Internal Market and Consumer Protection (IMCO) of the European Parliament, on the EC proposal “Approval and market surveillance of two- or three-wheeled vehicles and quadricycles”, ACEM welcomed the IMCO decision to run an impact assessment study on the potential effects of the new provisions voted by the EP Committee. [See press release from Acem].

The IAS aimed at shedding light on the cost-benefit of extending ABS provisions, modifying On Board Diagnostics requirements and changing the timetable for emission standards for the application of the provisions.

From today’s discussions in IMCO it became apparent that the shortcomings of the IAS did not deliver at this stage the much needed answers to support an informed decision. Given the fundamental importance of the issues at stake, ACEM calls on MEPs to insist on a clarifying Impact Assessment Study before proceeding to a final vote.

Today’s discussions in IMCO focussed mainly on ABS and cost issues. For the sake of clarity, as previously stated during IMCO considerations of this proposed legislation and contributed to the IAS:

“ACEM wishes to underline the following manufacturers’ costs per ABS system fitted/per individual vehicle:

Manufacturers’ costs for additional hardware sourcing (e.g. pump, phonic wheel, CPU, wheel sensors, additional hoses, electric wiring, etc) start at 200€ for a basic ABS system. More complex systems can reach more than double, up to 500€. Smaller motorcycles, equipped with drum brakes, will even require changing the wheels, further increasing the costs.

Manufacturers’ costs for application (e.g. adjustment of the function to the specific motorcycle model) will vary, depending on the complexity of the system and on the foreseen number of vehicle units sold over the model’s commercial lifetime. This cost can be estimated on average at 30€ per vehicle. In case of below-average-volumes production, all costs will be much higher.

Total costs to install ABS for manufacturers’ start therefore at 230€ per vehicle for the most basic systems, with large variations depending on volumes. These translate currently into consumer costs from 400€ to 1000€, with an average around 500€.

Whilst ACEM can agree that economies of scale and competition will to some extent contribute to reducing these costs, the magnitude of this future expected reduction should remain realistic. Motorcycle average production is much lower than car average production and is insufficient to trigger the economies of scale announced by some stakeholders. CBS systems also have varying degrees of complexity, but on average their costs can be estimated to be approximately 50% of those for ABS.”

Regarding the envisioned benefits mentioned in IMCO which would come from presumed economies of scale, especially in the case of catalysts, ACEM points out that the higher content of precious metals used in these devices will rather lead to increases in price due to legislative measures.

Jacques Compagne, ACEM Secretary General, stated: “Due to the impact of the foreseen measures, in particular for smaller vehicles in a market which is already suffering from an unprecedented crisis, it is of the utmost importance that the quality of the Impact Analysis Study provides the basis for an informed decision in the European Parliament.”

About ACEM

ACEM, the Motorcycle Industry in Europe, is the professional body representing the interests and combined skills of 13 powered two wheelers (PTWs) manufacturers producing more than 30 brands, and 15 national associations out of 13 European countries, guaranteeing jobs to over 150.000 people. The aggregated turnover of the PTW sector (manufacturing, plus upstream and downstream activities) amounted to Euro 34 billion in 2008. Manufacturers alone account for Euro 7 billion. The members of ACEM account for 90% of the production and up to 80% of the European powered two-wheeler market. ACEM also represents main manufacturers of tricycles and quadricycles.

Original Source: ACEM – Click Here

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