How Europe's car industry can become a competitive winner

Many anticipate that the EU will implement tariffs or taxes to level the playing field against cars that can be produced under significantly different conditions than in Europe. However, there are sceptical voices.

"Tariffs are probably not the most effective long-term solution. Instead, we should set clear climate requirements for cars. For instance, no car would be allowed to be sold in Europe if production and transport resulted in emissions greater than the equivalent of 17 tonnes of carbon dioxide." "That would encourage further development," says Peter Bryntesson, CEO of FKG, the trade organisation for Scandinavian suppliers to the automotive industry.

Software instead of spare parts

"We have an efficient industry and there is a willingness to develop products, but competition and the climate challenge mean that more is needed," says Anders Gotte, Department Head at RISE. "Digitalisation in particular offers completely new opportunities for production. Instead of building business models around selling spare parts, you can sell updates. In manufacturing, the same item can have many more applications, the car simply becomes smarter."

Build cars with less raw material consumption

One of the key aspects of streamlining is to reduce the use of resources, including virgin materials, in manufacturing. If cars are designed to be dismantled, it also means we can reduce our dependence on virgin materials. In the long run, it should be cheaper to manufacture from recycled parts, but this is not yet the case.

Anders Gotte points out that there are examples of remanufactured gearboxes in lorries today that are sold with the same functions and warranty as a new one. However, this is also an example of how legislation and regulations affect the industry's conditions.

The classification of parts of an old car is a key factor in determining their future use. In some cases, parts that could be important, useful and safe in industrial processes are classified as hazardous waste. By changing the rules governing this classification, we can also increase resilience and become less dependent on uncertain value chains. 

Securing access to electricity and critical raw materials

Another key issue is energy supply, according to Peter Bryntesson. Without access to clean energy, it would be impossible to operate any kind of business. However, with more clean electricity production and smarter grids, electric cars can actually be part of the solution. The technology exists to use the capacity of the cars parked at Arlanda, where we even know how long they will stay, to power parts of the airport.

Bryntesson reiterates that the technical issues are relatively minor. The majority of the problems are caused by lockdowns in areas such as communication, culture and legislation.

RISE can help facilitate a paradigm shift

It is therefore more important to address energy supply, access to metals, semiconductors and skills supply than to focus on tariffs. Peter Bryntesson, who also chairs the national organisations of the European industry association Clepa, notes that a third of companies in the European automotive industry are already engaged in re-skilling their workforce, with another third indicating a need to do so. 

RISE is supporting this work in various ways.

"Many of the changes that industry is now working on, such as increasing the recycling of parts and materials, are multidisciplinary," says Anders Gotte, and continues: 

"For this reason, an organisation like RISE, with a broad offering of applied research and test and demonstration environments for development and scaling up, is an ideal partner in the industry's transition."

"Production lines are expensive and it is natural that industry wants to keep them running for as long as possible. However, together with us, the necessary paradigm shifts can be made so that we do not lose the competition but win it."

RISE test and demonstration environments allow different actors to develop new methods and solutions without losing momentum in existing activities. The knowledge accumulated in traceability and sustainability analyses enables the production of reliable sustainability data, a prerequisite for future declarations on the total environmental impact of products, such as future digital product passports. This supports industry in preparing for new requirements and future legislation, both those we know about today and those we can only imagine.

"And we are also working hard to educate those who are working, an important part of the transition," says Anders Gotte.

For Peter Bryntesson's members, the whole of Sweden, with its size, its large automotive industry, academia and, not least, RISE's support, can therefore constitute a test market when Europe takes up the fight for the important future electric car market.