ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels, Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

ECG – The Association of European Vehicle Logistics Issue 12.23, 11th – 15th June 2012

CONTENTS NEWS FROM BRUSSELS 3

Europe bids to revamp domestic car sector 3 Outcome of the June Transport Council 3 EC opens formal proceedings against Deutsche Bahn 4 EU Sustainable energy week, 18th – 22nd June 2012 5

AUTOMOTIVE INDUSTRY 5 Marchionne cuts €500 m from Fiat's European investments 5 Toyota centre widens reach across Spain 6

EUROPE 6 PSA plans to sell 50% of GEFCO trucking unit 6 Geodis subsidiary hit by truck drivers in ticket fraud 7 Short sea rates feel the squeeze 7 Russia cuts permits to protect domestic LSPs 8 Renfe to sell stakes in rail providers 9 Schenker secures Lufthansa Cargo award 9 New governments in German Laender saying no to mega trucks 9

REST OF THE WORLD 9 MHI’s Massive RO/RO Vessel, Awarded Ship of 2011 9 Nissan plans $785 m in North China plant, to challenge VW, Toyota 10

PRESS RELEASES 10 Grimaldi enhances its maritime Brindisi – Igoumenitsa – Patras service 10 Vehnet unveils new Cloud based Car Yard Manager at FVL NA 11 CECRA welcomes the CARS 21 final report but asks more clarity on the recommendations concerning the vertical relations in the automotive sector 11 CARS 21 Final Report: Moving in the right direction, but lacking ambitious targets for Europe 12 CER and UNIFE urge EU ministers to safeguard €31.7 bn for transport infrastructure 13 Automobile industry leaders meet Spanish government officials 13

ECG – The Association of European Vehicle Logistics No. 11/ 14-18 March 2012

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NEWS FROM BRUSSELS Europe bids to revamp domestic car sector (Source: EU business.com, 07th June 2012) Europe is drawing up plans to protect its auto industry as manufacturers battle barriers to export markets and face up to increasingly tough environmental challenges. The industry and regulators approved "a new action plan in favour of the automotive sector," European Union Industry Commissioner Antonio Tajani said. The plan is anchored by an extra half a billion euros of EU investment in green technologies but carmakers said the programme would stand or fall on free trade negotiations with Japan and other major competitors. Tajani said after the talks that the EU would ensure automakers could feel safe thanks to a "good trade policy, on a level playing field" with rivals around the globe. However, Sergio Marchionne, the Fiat boss who heads the European automotive industry association ACEA, said the agreement was only "day one of a long haul going forward." With the EU about to enter free trade negotiations with Japan, the world's third-largest economy, Marchionne said this part of the plan must not be "forgotten" in Brussels. "Trade relations should deliver reciprocal benefits," he stressed. "However, the EU always appears ready to compromise on these conditions as experience has shown with South Korea and other examples," he noted. After five years of decline, the industry feels threatened by rising South Korean exports -- with brands like Kia showing regular and big sales increases, albeit from a low base, while traditional European models slide consistently. "Very clearly there are things that need to be checked," Marchionne said of South Korea and this experience was a "very good warning sign for the Japan deal," he said. Tajani acknowledged negotiations can be difficult, especially given lower costs elsewhere, the Italian using a football analogy to say European trade rules are like "11 v 11," whereas in other countries, "it's very difficult to play 9 men against 13." Earlier, a separate EU report on mounting protectionist tendencies, particularly in Russia, Brazil and India, said it expected Moscow to make it much more difficult for European companies to get their cars to Russian consumers. New car sales plummeted as the 2008 global financial crisis rocked the economy, forcing EU governments to step in with some €30 bn through various "cash-for-clunker" schemes. While these and other incentives for buyers helped keep the industry afloat through the worst of the global downturn, Europe has not gone through the fundamental and painful restructuring which has allowed US manufacturers to get back on their feet. The sector acknowledges "over-capacity" in Europe but Marchionne insisted there was no call for public funds for a necessary restructuring. Access to crucial raw materials is also getting more difficult and the transition to environmentally-friendly vehicles remains sluggish. An 84-page analysis drawn up for the talks highlighted the dangers posed by "overcapacity, growing dependence on third-country markets, growing cost of production, cost of regulation and technological challenge." Alongside smarter regulation and efforts to open market access, Tajani said EU investment in "green" innovation between 2014 and 2020 would rise to €1.5 bn. With 2.5 bn vehicles expected to be on the roads by 2050, the belief is that electric, hydrogen-powered and other hybrid technologies will supersede the traditional internal combustion engine powered by fossil fuels. There would be no going back on ambitious EU climate-action goals in the interim, the participants agreed. The EU auto sector employs some 12 m people directly, contributes about €70 bn to the bloc's external trade balance and accounts for about €28 bn in annual research and development investment, according to ACEA data. Outcome of the June Transport Council (Source: EC, EP, 06th-07th June) On 7th June, under the Danish Presidency, the EU's Council of transport ministers met in Luxembourg and heard from the European Commission’s Vice-President Siim Kallas, responsible for transport and

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ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels, Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

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The ECG Operations Quality Manuals for PCs and LCVs, CVs

and H&H are available on-line!

• Written by the Quality

Working Group and the H&H Working Group composed of OEMs and LSPs

• The manuals can be downloaded from: http://www.ecgassociation.eu/PublicationsReports/ECGOperationsQualityManual.aspx

For comments or inquiries please contact:info@ecgassociation.eu T: +32 2 706 82 80

mobility. The Commissioner presented several topics among which: the Connecting Europe Facility (CEF); the results of the Blue Belt Pilot project, and the implementation of the European Electronic Toll Service (EETS). The Council agreed on a partial general approach on a draft regulation establishing the Connecting Europe Facility (CEF). It shall fund €50 bn worth of investment to projects which fill in the missing links in Europe's transport, energy and digital backbone and remove bottlenecks. The draft regulation determines the conditions, methods and procedures for the Union's financial contribution to TEN projects, while the development strategies, priorities and implementation measures for each of the sectors are defined in sector-specific policy guidelines which will be adopted separately. The Council also held a debate on the follow-up of the Blue Belt pilot project, dealing with intra-EU maritime transport, delivering timely, accurate and consolidated information on the routes of vessels circulating between EU ports to customs authorities. This voyage tracking data contributes to simplifying and co-ordinating control procedures for ships when arriving at ports. The aim is to reduce administrative burden and delays for ships operating only between EU ports. The Council envisaged the possibility of extending the small-scale pilot project into a larger permanent tool to the benefit of national authorities and the shipping industry. The implementation of the European Electronic Toll Service (EETS) will greatly reduce the hassle first for truckers and later on for all road users by allowing them to easily pay tolls all over the EU by means of a single on-board unit and a single service contract. This will result in fewer cash transactions at toll stations and the elimination of cumbersome procedures for cross-border users, thereby improving traffic flow and reducing congestion. The EETS shall ensure the interoperability of all the electronic road tolling systems in the EU and will facilitate the introduction of new charging schemes. However the Commission pointed out that the legal deadline of October 2012 is unlikely to be met. As a first step towards an EETS with full European coverage, the Commission now suggests supporting the regional deployment of EETS between the Member States with electronic toll systems on the networks carrying the main traffic flows and offers available EU financial assistance. The new regulation for the Galileo and EGNOS programmes during the new multi-annual financial framework (2014-2020) sets out the activities to be financed, establishes the responsibilities for the different governance tasks and lays down rules on public procurement. Commission opens formal proceedings against Deutsche Bahn (Source: European Commission, 13th June 2012) The European Commission (EC) has opened formal antitrust proceedings to investigate whether the German railway incumbent Deutsche Bahn AG and several of its subsidiaries operate an anticompetitive pricing system for traction current in Germany, in breach of EU antitrust rules. The EC will investigate whether the discounts applied by Deutsche Bahn lead to higher prices for its competitors, placing them at a disadvantage on the rail freight and passenger markets. The opening of proceedings does not prejudge the outcome of the investigation; it merely means that the Commission will treat the case as a matter of priority. Following complaints, the Commission carried out inspections at the premises of Deutsche Bahn in 2011. The EC's investigation will focus on the pricing of traction current in Germany. Traction current is a particular type of electricity needed to move electric locomotives and trains on the railway network. In Germany, traction current is supplied at a specific frequency distinct from the frequency of the general electricity network. DB Energie GmbH, a subsidiary of Deutsche Bahn AG, is the only supplier of traction current on the German market. The Commission will investigate in particular whether discounts on the price of traction current applied by DB Energie GmbH to railway undertakings active in Germany lead to higher prices for competitors of Deutsche Bahn and place them at a competitive disadvantage on the rail freight and passenger markets. Such behaviour, if established, would

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violate Article 102 of the Treaty on the Functioning of the EU (TFEU) that prohibits the abuse of a dominant market position. EU Sustainable energy week, 18th – 22nd June 2012 (Source: EUSEW.eu, ECG, 13th June 2012) Annually, hundreds of individuals and organisations in over 30 countries take part in EU Sustainable Energy (EUSEW) week promoting energy efficiency and renewable energy sources. The core of the Week is a high-level policy conference in Brussels, expected to draw an audience of at least 4000 people over three days. It will examine in detail the EU’s renewable energy strategy and present practical examples of the financial opportunities available, including a ‘networking’ session. Special attention will be given to the development of sustainable energy in Eastern Europe, Central Asia, the Mediterranean and to our cities and regions. The rich agenda includes advice on how small businesses and households can make their own contributions. ECG has registered for selected events of potential interest to its members, among which the Intelligent Energy Europe (IEE) workshop. On 20th June 2012 DG Energy (DG ENER) and the Executive Agency for Competitiveness (EACI) and Innovation organizes a half-day workshop aiming at discussing with EUSEW participants an outline of the three intervention areas of the successor to the IEE II programme: supporting EU policies; building capacity; and triggering investments. This workshop is one of a series of important consultations organised in the next few months by ENER/EACI to prepare the market uptake activities to be supported in the period 2014-2020. The event will mark the launch of the public consultation on the successor to the IEE II programme. Other events ECG has registered for next week are: Electrifying Road Transport (by Renault-Nissan); Energy efficiency in the logistics chain; Delivering the goods – Making lorries smarter, safer and greener (by Transport& Environment).

AUTOMOTIVE INDUSTRY Marchionne cuts €500 m from Fiat's European investments (Source: Automotive News Europe, 15th June 2012) Fiat is cutting investments in Europe by €500 m on expectations that the region's auto market won't recover in the second half. "The capital expenditure reduction is about half a billion euros from what we planned last year for 2012 in Europe," CEO Sergio Marchionne said in an interview in Madrid, where he's heading the annual gathering of the European auto association ACEA. A recovery in Europe "depends on many factors: first Greece, then the way in which the euro currency will continue and what Europe will do to sustain growth," the CEO said. Fiat, which owns 58.5% of Chrysler Group LLC, has stopped additional investments and postponed the introduction of new models in Europe. Marchionne, who is also CEO of Chrysler, plans to eventually merge Fiat and the U.S. carmaker in a bid to increase sales to more than €100 bln by 2014 and reduce the Italian manufacturer's reliance on Europe. Marchionne said that the new Grande Punto model, which was originally scheduled to be built beginning in 2013, "is one of the projects we are reconsidering in line with the changes" to the market in Europe. Fiat is discussing partnerships "with several people, and in some cases our architectures, including the one for the Punto, are involved in the talks," he said. "We're definitely going to be at these lower sales levels for some time to come in Europe," Richard Hilgert, a Chicago-based analyst for Morningstar Equity Research, said by telephone. "It's going to be a long, slow recovery over there, and Marchionne's focusing more on growth outside of Europe." Fiat will pay less than €200 m to increase its stake in Chrysler by 3.3% to 61.8%, Marchionne said. Fiat already sent a letter to exercise its option, Marchionne said in the interview outside a Madrid hotel. The CEO said there won't be "any spectacular news" on a full acquisition of Chrysler in the second half. Fiat is not currently in talks with the United Auto Workers' retiree health care trust, VEBA, to buy its remaining holding in the U.S. carmaker, said

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ECG AGENDA ►ECG Board Meeting on 29th June 2012 in St. Petersburg, Russia. ►ECG Conference on 11th -12th October in Prague, Czech Republic. ►ECG Survey Group on 26th June, in Brussels ►UK & Ireland Regional Meeting on 18th July, in London ►The ECG Survey Group on 30th August, in Brussels ►Eastern Regional Meeting Autumn (date TBC), in Vilnius. ►UK & Ireland Regional Meeting on 13th November, in Birmingham

Marchionne, who added that he'll switch off all his mobile devices to celebrate his 60th birthday 17th June. Fiat is not considering an initial public offering of its Ferrari supercar maker to finance an acquisition of Chrysler, the CEO said. "We have enough cash." Fiat may pay about €3 bn to buy the rest of Chrysler, Max Warburton, an analyst at Sanford Bernstein wrote in a note to clients on 21st May. "This is an excessive sum for me, have a look at General Motors Co. multiples," Marchionne said. European carmaker CEOs meeting in Madrid haven't made any progress on a common plan to address the region's overcapacity issues, Marchionne said. "I think my proposal will just remain a Marchionne idea," he said. "If there's no co-ordination by the European Union," every carmaker in Europe will "do it by itself," he said before a gala dinner with the other executives. Toyota centre widens reach across Spain (Source: Automotive Logistics News, 13th - 19th June 2012) Toyota Motor Europe has officially started operations at its newly relocated parts centre in Illescas, 40km south of Madrid. The company had its previous centre to the North of the capital at San Agustín de Guadalix. Toyota has invested €26.7m in the new 19,600m facility, called Toyota Parts Centre España (TPCES), which houses around 290,000 different parts serving 166 Toyota and Lexus dealerships in Spain. The service coverage for TPCES in Spain has now increased to 75%, up from 57% at the previous Guadalix centre, including the newly added Catalonia region. "The improvement has to do with both geographic reasons and improved operations," said a spokesman for TME. "At the previous location, the Catalonia region was served by Toyota Parts Centre South of France in Le Pouzin due to geographic restraints and capacity restrictions in the previous location in SA de Guadelix. Catalonia is now served by TPCES following its relocation. The improved lean operations ensure efficient parts availability and delivery to customers." Toyota told that its deliveries from the TPCES are predominantly road based to ensure the shortest possible lead time and that it was working with logistics provider UTi for the distribution of parts to dealerships in Spain. However, Toyota is also studying potential opportunities to support deliveries by short sea from its central European parts hub in Diest, Belgium to the new centre in Spain. "The preliminary studies are currently at an early phase, but we are mindful of our commitment to ensure the most sustainable method of transport," said the spokesperson. TPCES forms part of 14 Toyota Parts Logistics Centres in Europe that supply parts for all 12.8m Toyota and Lexus vehicles across the region. The new centre will operate on Toyota's lean concept and is designed to ensure that more than 96% of parts are available for delivery when ordered. The relocation project officially kicked off in March, 2011 when Toyota Motor Europe president and CEO Didier Leroy laid the first foundation stone of the main warehouse building.

EUROPE PSA plans to sell 50% of GEFCO trucking unit (Source: Automotive News Europe, 15th June 2012) PSA/Peugeot-Citroen plans to sell at least 50% of its profitable GEFCO trucking unit, more than previously discussed, as it seeks to raise cash amid slumping sales in Europe. "The chief executive told us that more than half of the shares would be sold," Patrice Clos, a FO union representative and head of GEFCO's works council, said in a phone interview. GEFCO CEO Yves Fargues provided the information at a works council meeting on Thursday, Clos said. The sale of a majority of the trucking unit "would mean that GEFCO's earnings would get deconsolidated in Peugeot's accounts," Florent Couvreur, an analyst at CM-CIC Securities, said by phone. "This would basically mean a 20 percent cut in their operating income." PSA announced plans in February to sell assets, including a stake in GEFCO, as the Paris-based carmaker grapples with European overcapacity and increasing debt. The French

ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels, Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

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Events in Brussels

• FP7 Transport Info Day, 18th

July 2012 in Brussels. (http://ec.europa.eu/research/index.cfm?pg=conferences&eventcode=4EAFBA5E-BDBD-62E1-177C8E4914FCEB3A) ECG will attend

• ITS workshop: "Information and reservation services for safe and secure parking of trucks and commercial vehicles", 28th June 2012, Brussels (http://ec.europa.eu/transport/its/events/2012-06-28-workshop_en.htm) ECG attending

• EU Sustainable Energy Week, 18-22 June, in Brussels (http://www.eusew.eu/energy-week-brussels) ECG attending

• Stakeholder consultation meeting on “Heavy-Duty Vehicle CO2 emissions, 3rd July 2012, Brussels

• T&E Conference on “Delivering the goods - Making lorries smarter, safer and greener” on 19th June, in Bavaria PermRep, Brussels (http://www.transportenvironment.org/events/delivering-goods-making-lorries-smarter-safer-and-greener) ECG attending

• “What reform for the European

railway legislation?” by EESC, on 06th September, Brussels

• "TIGER’ strategic perspectives

in the light of the future european freight mobility policies" on 27th September in Bibliothèque Solway, in Brussels (http://www.tigerproject.eu/sites/default/files/TIGER%20FINAL%20EVENT%20DRAFT%20AGENDA%20.pdf )

carmaker's sales in the EU and EFTA countries tumbled 14.9% to 675,323 in the first 5 months of 2012, outpacing an industry wide slump and causing its market share to drop to 12% from 13%, according to data from the ACEA industry group. GEFCO, a fully-owned PSA subsidiary, has attracted eight bidders so far, and PSA plans to narrow the field to three by the end of July, Clos said. The deal is slated to close by early September, which would be a month later than previously scheduled, he said, adding that Fargues didn't provide details on valuation nor identify the bidders. Pierre-Olivier Salmon, a spokesman for PSA in Paris, declined to comment. Geodis subsidiary hit by truck drivers in two-way ticket fraud (Source: Lloyd’s Loading List, 08th June 2012) Truck drivers employed by a subsidiary of Geodis have been implicated in several cases of fraud concerning motorway toll-gate tickets. It is reported to have cost the concessionary motorway company, Autoroutes du Sud de France, millions of euros in lost revenue over a three-year period. Other motorway companies could be victims too. The scam takes advantage of the fact that toll-gate tickets are valid for use in both directions. For example, a driver claims he lost his toll gate ticket as leaves the motorway between Paris and Lyon. He is obliged to pay the maximum toll – which he would have paid anyway. On the return leg, he exits the motorway several kilometres from Paris. At the toll-gate, he uses the ticket for the outward leg, but only pays the tariff to Paris instead of the full toll between Lyon and Paris. The majority of drivers involved in the scams are said to be of East European origin, working for Giraud Iberica, a Spanish subsidiary of Geodis. Three cases recently came to court and a further 10 are in the pipeline. No one was immediately available for comment at the SNCF-owned group. At the end of last month, a court in Perpignan, handed out an eight-month suspended prison sentence to Romanian driver and confiscated a Giraud Iberica truck. It emerged during the trial that a network of 20-25 drivers were involved in the scam, arranging meetings in lay-by areas to exchange tickets, in order to economise on journey costs. “These drivers are often given an expenses allowance by employers to cover fuel, tolls and food. It’s a system that encourages drivers to economise, often fraudulently,” told a source close to the judicial investigations. He said other toll-gate scams focused on stolen credit cards being used by drivers. Short sea rates feel the squeeze (Source: Lloyd’s Loading List, 13th June 2012) While short sea shipping lines complain that rates will “remain too low” and will stay under pressure, deep sea operators are talking further hikes of 10-20% this year for export traffic. Craig Jasienski, CEO of European short sea operator UECC, believes the rates issue is the “key challenge” for the sector – “particularly as bunker prices keep rising”. He said: “Rates in the European short sea ro-ro market remain too low. Carriers are not getting the returns needed to support new investment, which is a concern. I can’t speak on behalf of others but we are making a concerted effort to try and raise prices.” He added that in the current economic situation, many European manufacturers were expecting regional ro-ro freight rates to continue softening. “But our message on that is absolutely clear – it is not possible.” Kell Robdrup, Head of North Sea Business for DFDS Seaways, agrees that short sea market rates remained under pressure and is pessimistic about prospects for any real improvement. “The North Sea market has seen smaller vessels replaced with larger ships. That has led to some capacity expansion in UK-Continent markets which, in turn, is helping to keep pressure on rates.” In contrast, Trond Sjursen, Head of Region Europe for Hoegh Autoliners, believes a combination of strong growth in European exports and restricted vessel capacity will enable deepsea ro-ro operators serving Northern Europe to continue a recent upward move in rates for outbound traffic. He said: “Last year saw rates for high and heavy traffic from Europe to Australia, for example, typically rise by 10%, and those for cars being exported to the Far East by 10-20%. This year will probably see further similar increases.” The reason, he added, is a shift in the balance between traffic coming

ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels, Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

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into Europe and that going out. Until a year ago, he says, volumes inbound from the Far East, in particular, substantially exceeded European export traffic to that region. That led ro-ro lines to treat the European outbound sector as a backhaul market, with resulting low rates. “That picture has changed, with the export side out of Europe now doing extremely well. Some carriers even have to ballast tonnage into Europe to cater for their commitments. Rates out of Europe have risen and will have to rise even more.” Russia cuts permits to protect domestic LSPs (Source: Automotive Logistics News, 13th – 19th June 2012) As delegates gear up for next week's Automotive Logistics Russia conference in Moscow the persistent problem of haulage licence permits for transport between Russia and Poland has resurfaced, with Russia cutting permits for haulage and implementing steep fines for invalid ones in an effort to protect domestic transport providers. Poland's quota of overland freight permits has been reduced to 150,000, down from 190,000, in line with the number of permits it allocates its domestic transport providers entering Poland and the EU market, also at 150,000. Industry sources say this could slow the movement of vehicles and parts to and from the country and force shippers to use exclusively Russian transport providers. Poland has a significantly higher number of transport companies moving goods internationally, somewhere between 22,000-24,000 compared to a far lower number based in Russia and the restrictions are being imposed to protect the Russian transport companies, according to Frost and Sullivan consultant Dominik Buszta. Quoting Eurostat figures he said that in 2009 Polish transport companies gained 15% market share in Europe and added that around 20%-25% of routes to and from Russia are served by Polish transport companies. Buszta told that the Russian government is interested in eliminating international companies (mainly from Poland or Lithuania) from the Russian market in an effort to promote indigenous companies. Toward this goal it has also implemented steep new penalties for invalid permits, brought in on May 4th this year, that will see a driver fined up to $1,540 if he or she is carrying the an invalid permit, with an additional $15,400 for the transport company. "Interpretation of the Russian transportation policy in this case is quite easy," said Buszta. "Only Russian transportation companies will be allowed to ship goods between Russia and the EU in the future." Russia and Poland had a serious haulage licence dispute last year that resulted in a total blockade on Polish truck movements into Russia through Belarus and which hit automotive parts and finished vehicle shipments, causing costly delivery delays in both directions and leading many into shipment under fraudulent documentation. That dispute involved the impact of fuel duty prices, restrictions on transit through the Czech Republic and tariff increases. The recurrent issue of haulage permits is just one of a number of annual predicaments affecting automotive logistics in Russia. This year's implementation of regulations on truck axle weights in the country that restricted normal operating limits and restricted vehicle transport are another (as reported in ECG News 12.14). These issues and many others will be discussed at next week's Automotive Logistics Russia conference, which will be held at the Radisson Royal Hotel, Moscow between 19-21 June. Speakers in the first session on the state of the industry in Russia include John Stech, CEO of Chrysler Russia, Peter Layer, director of purchasing and supply chain, at General Motors Russia and John Mylonas, CEO and general director, Myla Motors. Amongst the other dedicated sessions leading executives from Mazda, VW, WWL, RailTransAuto and Finnlines will tackle the challenges of linking Russia and the rest of the world. To read about ECG’s Briefing Report “Axle weight restrictions in Russia” please access: http://www.ecgassociation.eu/Portals/0/Documentation/Publications/Axle%20weight%20restrictions%20in%20Russia.pdf

ECG Office

Mike Sturgeon, Executive Director T: +32 2 706 8282 Mike.sturgeon@ecgassociation.eu Tom Antonissen

EU Affairs Manager T: +32 2 706 8283 tom.antonissen@ecgassociation.eu Marta Mottini Research & Projects Manager T: +32 2 706 8284 marta.mottini@ecgassociation.eu

Gabriela Caraman Communications & Events Officer T: +32 2 706 8279 assistant@ecgassociation.eu

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Renfe to sell stakes in rail providers (Source: Automotive Logistics News, 13th – 19th June 2012) Spain's Catalan Railways (FGC), which is owned by the autonomous government of Catalonia, is to guarantee continuity of the Autometro and Cargometro services which provide finished vehicle and parts movements for Seat's Martorell plant near Barcelona, despite the withdrawal of Spanish National Railways (Renfe) in March. The announcement of FGC's continued support for the services was made by Enric Ticó, chairman of the FGC, who noted that both services were completely profitable and worthy of the rail provider's full support. In March, the Spanish government, which effectively owns 100% of Renfe, announced that the provider would abandon both Autometro and Cargometro as part of a restructuring programme involving 80 public sector companies as part of a cost cutting process. Among the companies affected were vehicle carriers Logistica y Transporte Ferroviario, also a freight transport subsidiary of Renfe. However, Pecovasa, another Renfe freight subsidiary that provides rail transport services for VW amongst others, remained unaffected. It was initially announced that stakes in Autometro and Cargometro, as well as Semat, were also being relinquished but FGC's latest statement appears to have stayed execution on the first two. Autometro was jointly owned by the FGC (51%) and Pecovasa. The company was set up to transport finished vehicles produced by Seat at its plant in Martorell to the nearby port of Barcelona by rail. Cargometro, meanwhile, deals with the movement of car components between Seat's logistics area in the Barcelona Free Zone and Martorell plant. Ownership is split between the same three companies, with FGC holding 51% of the equity, Renfe 25% and Pecovasa 24%. Renfe intends to put the shareholding it has in both companies up for sale. In 2011, Cargometro doubled the number of trains it operates from 661 to 1,200 while Autometro transported 17,200 more cars last year, equivalent to growth of 23.5%. Schenker secures Lufthansa Cargo award (Source: Automotive Logistics News, 13th - 19th June 2012) Lufthansa Cargo has awarded its "Planet Award of Excellence" to global partner DB Schenker. Presenting the award at this year's Global Partner Council in Ålesund, Norway, the German cargo airline paid tribute to DB Schenker's outstanding contribution in 2011 as a global partner, which was most evident in the constantly high volume of freight business between the two companies. "Co-operation between DB Schenker and Lufthansa Cargo in 2011 was based on an outstanding partnership. We are proud that a large part of DB Schenker's airfreight was flown by Lufthansa Cargo last year," said Dr Andreas Otto, Lufthansa Cargo executive board member responsible for Product and Sales. "It is exceptionally gratifying that Lufthansa Cargo, along with its strong partners in the Global Partnership Programme, was able to substantiate the success of recent years and also continue on its growth path in 2011." Dr Otto presented the award to Dr Thomas Lieb, chairman of the Management Board of Schenker and also underlined the special ties between the two companies. "It is not merely the growth in business generated by Lufthansa Cargo and DB Schenker that is gratifying. It is also the fact that in 2011 both companies together succeeded in boosting the use of innovative booking channels and in driving e-freight forward." New governments in German Laender saying no to mega trucks (Source: NoMegaTrucks.eu, 13th June 2012) After the elections in the German federal states of Schleswig-Holstein and North Rhine-Westphalia it is now certain that there will be no mega truck experiments in both states. In its coalition agreement the newly elected government of Schleswig-Holstein unmistakably clarifies what it thinks of so-called trials with obver-sized trucks: "The use of longer vehicles, so-called Gigaliners, is refused by us. Therefore Schleswig-Holstein will retreat from the trial with longer trucks. The promotion of combined transport has priority for us." With the pullback of the state from the federal government's trial also the mega truck supporters in Denmark and the Netherlands will suffer a setback. In the past they repeatedly demanded cross-border journeys and a mega trucks corridor from the Benelux to Scandinavia. Also the federal government of North Rhine-Westphalia renews its no to mega truck experiments on public roads. In the today published coalition agreement it says: "The federal trial with mega trucks is still being rejected by us."

REST OF THE WORLD MHI’s Massive RO/RO Vessel, Awarded “Ship of 2011″ (Source: Marineinsight.com, 14th June 2012) The world’s largest roll-on/roll-off (RO/RO) ship, built by Mitsubishi Heavy Industries, Ltd. (MHI), has been awarded the “Ship of the Year 2011″ by the Japan Society of Naval Architects and Ocean Engineers (JASNAOE). Every year JASNAOE selects what it considers to be the most technologically, artistically and socially superior ships and marine structures built that year, and the TØNSBERG was chosen for its highly evaluated transport efficiency and environmental compatibility. The award ceremony is slated to take place on 25th July. The TØNSBERG is the first in a series of four ships ordered by the Wallenius Wilhelmsen group and

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Wallenius group: the former a Norway-based group of maritime industrial firms having global scope, and the latter a Swedish shipping group. The ship was completed in March 2011 at MHI’s Nagasaki Shipyard & Machinery Works and delivered to the WWL group. The 74,622 gross tonnage ship measures 265 meters (m) in length overall (LOA), 32.26m in breadth and 33.22m in height. The TØNSBERG features capability to transport high and heavy (H&H) cargo such as large-size construction machinery and machine tools, plant components, railway cars and pleasure boats. To enable flexible loading of such cargo, three of the ship’s nine decks are electrically hoistable. To reduce environmental burdens and save energy, the ship is equipped with a ballast water treatment system, waste heat recovery system, electronically controlled engine, etc. The Ship of the Year awards were established in 1990, hosted by JASNAOE and sponsored by the Japanese Ministry of Land, Infrastructure, Transport and Tourism, to promote construction of superior ships and marine structures and induce greater sea-mindedness among the general public. Award contenders apply in one of six categories: large passenger ships; small passenger ships; large cargo ships; small cargo ships; fishing and work vessels; and special vessels, marine structures and marine equipment. Earlier, MHI received JASNAOE’s first “Ship of the Year” for the CRYSTAL HARMONY (present name: ASUKA II), the cruise ship built in 1990. The award given to the TØNSBERG marks the 6th won by MHI from JASNAOE. Taking renewed encouragement from this latest award, MHI will now make further efforts in the development and construction of high value-added vessels demonstrating strong international competitiveness in many aspects, including energy savings and environmental compatibility. At the same time, the company will also expand its shipbuilding and ocean development activities by strengthening its engineering business in providing related technologies to other companies in Japan and other countries. Nissan plans $785 m in North China plant, to challenge VW, Toyota (Source: Automotive News 14th June, 2012) Nissan Motor Co., the biggest Japanese automaker in China, is to build a $785 m plant in the northeast of the country, a person with knowledge of the plan said, extending its reach in the world's largest auto market. The plant, in Dalian city, is part of Nissan's 30 bln yuan investment in China by end-2015, vying with General Motors Co. and other global automakers also looking to the emerging Asian giant for growth as more developed markets stutter. It also illustrates how the big foreign carmakers are now venturing on to each other's turf in China to broaden their appeal. In the past decade, foreign brands have carved up China into five territories, building fiefdoms based on their local partnerships. That's now changing as the rivals set up camp in each other's backyard. Volkswagen AG has been strongest in east and north China through its tie-up with domestic leader SAIC Motor Corp. and FAW Group, leaving the southern market mostly to Japanese rivals. But the German brand is building its first plant in Guangdong province in the south. It said in November its market share in the south had risen to 15.8% from 12% two years earlier. Similarly, GM, which has been making cars for more than a decade in Shanghai, recently unveiled plans for a greenfield facility in the central city of Wuhan, a Nissan stronghold, and Ford Motor Co. is venturing outside its southwest base to build a plant in Hangzhou, near Shanghai and GM's patch.A production base in Dalian, the wealthiest coastal city in the northeast, analysts say, would give Nissan easy access to a regional market where Volkswagen and Toyota have been making their Jetta and Corolla models for years. "Nissan will become a major rival for Volkswagen and Toyota in north China with the new plant. It will be cheaper and faster to ship parts to Dalian compared to Wuhan as Dalian is a major port city not that far from Japan," said Sheng Ye, associate research director for Greater China at consultancy Ipsos. Dalian had also attracted Fuji Heavy Industries' Subaru, which sought approval for a factory there for its ill-fated venture with Chery Automobile.

PRESS RELEASES Grimaldi enhances its maritime Brindisi – Igoumenitsa – Patras service (Source: Grimaldi Group, 8th June 2012) A few weeks after its launch, the Grimaldi Group is proceeding to enhance its Brindisi-Igoumenitsa-Patras maritime service by doubling its frequency. With the deployment of a second vessel as from the 2nd of July, the Grimaldi Lines service between Southern Italy and Greece will become daily, while in the summer period, two weekly calls to the island of Corfu will also be offered. The vessel which will flank the "Sorrento", already deployed on the line since last April, will be her sistership called "Florencia", a modern ferry built in 2004. With a length of 186 meters, a gross tonnage of 26,000 tons, the "Florencia" is able to transport 1,000 passengers, 170 cars and 2,250 linear meters of rolling cargo at a service speed of 23 knots. The vessel has 96 cabins - between internal, external cabins and suites - all equipped with air conditioning, toilet and shower. Several services are offered on board, such as a self-service restaurant, a cafeteria, bars, video games and slot machines area, a shop and a children area. Thanks to the deployment of the ferry "Florencia", the Grimaldi Group will offer daily departures from Brindisi at 7,00 p.m. with arrival at Igoumenitsa the day after at 04,00 a.m. and at Patras at 12,30 p.m. From Greece to Italy,

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departures from Patras will be at 05,00 p.m., the day after from Igoumenitsa at 01,00 a.m., with arrival at Brindisi at 8,00 a.m. From the 13th of July until early September, an additional call at the island of Corfu will be offered, with departure from Brindisi on Friday at 7,00 p.m. and arrival on Saturday at 05,00 a.m., while the return from Corfu will be on Sunday at 1,30 a.m. with arrival at Brindisi at 08,00 a.m. Furthermore, in the period between the 24th of July and the 30th of August, a second departure to Corfu will be offered from Brindisi every Tuesday at 07,00 p.m. with arrival at Corfu at 05,00 a.m. The return from Corfu will be on Thursday at 01,30 a.m. with arrival at Brindisi at 08,00 a.m. "With the decision to further strengthen our maritime links to Greece, the Grimaldi Group sends out a signal in contrast with the current economic situation -said Emanuele Grimaldi, Managing Director of Grimaldi Group - Our goal is to offer a regular, high-quality service and economically convenient for both passengers and transporters, while ensuring safe holidays to Italian families, with a reliable Company", concludes Emanuele Grimaldi. Vehnet unveils new Cloud based Car Yard Manager at FVL NA (Source: Vehnet, May 2012) Market leading software specialists Vehnet will be unveiling the industry’s first Cloud-based automotive yard management system, Car Yard Manager at the Finished Vehicle Logistics conference to be held in California at the end of May. Designed to offer a low-cost, easy to operate alternative to its flagship product, Advance Yard Manager, Car Yard Manager is the perfect system for less complex yards. Based on years of industry experience, Car Yard Manager delivers best practice processes for all flows, without the associated costs of installing and hosting software on your own server. Easily accessible via a browser and the Internet, the system operates on a pay-as-you-go pricing structure based on volumes, with no minimum contract. According to Steve Jones, Managing Director of Vehnet, Car Yard Manager represents another industry first for the company. “We listened to what yard operators around the world had to say and responded,” he says. “We constantly hear of finished vehicle operators who need better control over their business, but cannot find a suitable ‘off the shelf’ product that ‘fits’ with their individual business requirements. While customers with large, complex operations depend on the flexibility and depth of our Advance product range, Car Yard Manager will satisfy those many operators with simpler requirements, who aspire to a system of the quality and pedigree of the Advance Yard Manager, but cannot afford the infrastructure costs associated with operating in-house software. We pride ourselves on being innovators, and are delighted to launch the first Cloud based solution for finished vehicle logistics.” Currently Vehnet is looking for yard operators to sign up for the Beta release of Car Yard Manager. For those that register and are selected, there will be opportunity to preview the software, have input into its further development and even use the system free of charge. Steve Jones concludes, “More than ever, customers are looking for value. We believe we have developed a product that is right for the current challenging marketplace and which leverages Cloud technology to deliver world class software at a reasonable cost.” CECRA welcomes the CARS 21 final report but asks more clarity on the recommendations concerning the vertical relations in the automotive sector (Source: CECRA, 07th June 2012) The report of the European Council for Motors Trades and Repairs (CECRA) covers the group’s views on the strategic vision for the automotive sector at the horizon of 2020 and specific recommendations on six policy areas that are of importance to the automotive sector: 1. A strategic vision for the EU automotive industry 2. Enhancing business conditions 3. Improving competitiveness on global markets 4. Lowering CO2 emissions 5. Deploying new mobility solutions 6. Reducing pollutant & noise emissions Most of the points are adopted by consensus by all CARS 21 members. CECRA welcomes in particular the fact that the deployment of eCall is considered as a priority for improving road safety and that its mandatory introduction has been planned for 2015.

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Regarding the aspect of vertical agreements pertaining to the supply and distribution chain for new motor vehicles, the report mentions that “a self-regulatory approach could be promoted via the development and adoption of common principles of good practice by the stakeholders in the automotive retail sector, involving the manufacturers, suppliers, dealers and consumers' representatives” (and that) these principles could “include clauses that promote transparency and a competitive playing field for the benefit of the stakeholders, including: (i) dispute settlement procedures; (ii) minimum notice periods for termination of contracts; (iii) other issues, if agreed (such as provisions related to multi-branding and the transfer of business)”. The first draft versions of the report contained the words: ‘code of conduct’ and not ‘common principles’ and did not mention the words ‘if agreed’. Although the drafts reported exactly the discussions during the CARS 21 meetings, the final report has been altered afterwards to take into account demands of other stakeholders. Representatives of the dealers and consumers opposed these amendments but their objections were rejected. Therefore, CECRA and FIA could not approve this section of the report and requested their opposition to be clearly noted in the final report. CECRA and FIA also asked the Commission to demonstrate more clarity in respect of the organization, process and procedures of the ‘multi-stakeholder dialogue’, and the implementation of a ‘code of conduct / common principles’. As the conclusions of the report invite all stakeholders to take into account the policy recommendations formulated in their respective field in order to support the competitiveness and sustainable growth of the automotive industry, it is necessary to have clarity about all these recommendations and in particular about the “effective mechanism” that could be used to ensure the self-regulatory actions are implemented in practice. The EC will very soon publish a Communication on the outcome of the CARS 21 process. It will set out proposals from the EC to implement the policy recommendations of the group in its policies. CECRA hopes that the Communication will also clarify what kind of mechanism will be put in place to ensure implementation. Finally, given that the Commission has launched an initiative to combat unfair business-to-business commercial practices, following the adoption of the Single Market Act, CECRA will invite its members – as requested by the Commission- to contribute to the public consultation process to be launched by the forthcoming Communication. CARS 21 Final Report: Moving in the right direction, but lacking ambitious targets for Europe (Source: FIAregion1.com, 06th June 2012) “We can be proud of adopting a report which represents a positive vision of the automotive sector’s competitiveness in the 21st Century, and which takes many positive steps with regard to improving road safety and the lowering of emissions”, said the FIA President, Mr Jean Todt, following the adoption of the CARS 21 High Level report in Brussels. Mr Todt said, “All stakeholders must work together to make sure our future mobility is safer, cleaner and more affordable for all.” Mr Jacob Bangsgaard, Director General of the FIA Region I office in Brussels, regretting the absence of more concrete targets, said that any vision of the automotive sector’s future ultimately rests on consumer demand. He singled out three areas where FIA Region I would like to see more progress: eCall: “The European Commission’s impact assessment has said that eCall can reduce fatalities EU-wide by as much as 5%. The early, mandatory, introduction of eCall which allows for an open platform must remain an urgent priority for all.” Improved Driver Training: “Apart from setting ambitious targets, we must not forget that important gains can be made through the improved training of drivers. For instance, it has been estimated that ecodriving can reduce road transport CO2 emissions by as much as 10%. We can do more in this area.” New Technologies: “The uptake of new technologies will be impossible without the support of the consumer. More needs to be done to raise awareness of new innovations underway, in particular in the area of life-saving eSafety technologies.” Commenting on initiatives at the global level to improve road safety, the FIA President, Jean Todt, said, “We would like to see more ambitious road safety targets coming out of the CARS 21 Group in line with those set for the UN Decade of Action one year ago. We cannot forget that as many as 1.3 m people are killed on roads each year around the world and another 50 m injured. This is a global tragedy.”

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He added, “Through the FIA’s Action for Road Safety campaign, the FIA is working with the support of our member Clubs to play our part in meeting the Decade’s ambitious goal to save 5 m lives on the world's roads in 10 years.” CER and UNIFE urge EU ministers to safeguard €31.7 bn for transport infrastructure (Source: UNIFE, 06th June 2012) Transport ministers will try to reach a partial general approach on the Connecting Europe Facility (CEF) at the Transport Council on 7 June. The Community of European Railway and Infrastructure Companies (CER) and the Association of the European Rail Industry (UNIFE) urge member states to support the Commission proposal, including its modal focus on rail and waterborne transport and to safeguard the €31.7 bn budget for transport infrastructure proposed by the European Commission for the EU budget 2014-2020. CER and UNIFE wholeheartedly support the European Commission proposal on CEF as an important step towards a sustainable transport network and welcome the Council’s overall support for this financial instrument. However, in order to make the goals of the 2011 Transport White Paper reality, the rail associations urge EU member states to endorse the co-financing rates proposed by the European Commission. A clear shift towards more sustainable transport modes such as rail is needed in the next financing period. The 2011 Transport White Paper confirms the importance of transport and its contribution to Europe’s economy and growth. At the same time it calls for a radical shift towards a more sustainable and less fossil dependent transport system. The Connecting Europe Facility is one of the key proposals implementing this vision. The modal focus of the European Commission’ CEF proposal on rail and waterborne transport projects is a crucial part of this strategy. CER Executive Director Libor Lochman said: “The Connecting Europe Facility proposal will only be meaningful if it is backed by adequate funding. That’s why we urge EU member states and the European Parliament to ensure the €31.7 bn budget. This amount equals about 3% of the total Multiannual Financial Framework which has been allocated to the Trans-European transport core infrastructure in 2014-2020. This is a vital minimum and must be guaranteed more than ever, if we want the TEN-T policy to become reality.” UNIFE Director General Philippe Citroën said: “The European Rail Industry is keen on the actual Implementation of the TEN-T programme. In this respect, the Connecting Europe Facility is a very useful tool to address the move from maps to reality. For this to happen, adequate EU funding is needed. Therefore, safeguarding the €31.7bn budget would be a clear signal that member states support sustainable transport.” ECG Note: ECG has undersigned an open letter with the same goal, as reported in “ECG News 12.17”, though with a more transport mode neutral approach Automobile industry leaders meet Spanish government officials (Source: ACEA, 15th June 2012) The heads of the European automobile industry held meetings with Spanish government officials in Madrid to mark the role of a strong manufacturing base in Europe towards securing sustainable economic growth. “We acknowledge the difficult situation that Spain and the Spanish people are in at present”, said Sergio Marchionne, President of ACEA and CEO of FIAT S.p.A. “We are here to express our support and highlight the importance of the automotive industry for the economy.” Spain is the second largest automotive producing country in Europe and the European manufacturers are committed to a healthy presence in Spain. From left to right: A. Altavilla (IVECO), D. Zetsche (DAIMLER), H. Schippers (DAF), R. Speth (Jaguar Land Rover), J.M. Soria López (Minister of Industry), F. García Sanz (President ANFAC),

A. Pastor (Minister of Transport), S. Marchionne (FIAT), J.M. García Margallo (Minister of Foreign Affairs), A. Fabra (President Government Valencia), M. Armero (Vice-President ANFAC), Ph.Varin (PSA) The Board of Directors of ACEA, the industry’s European trade association, had meetings with Prime Minister Mariano Rajoy and the Ministers of Industry, Foreign Affairs, Infrastructure & Transport, among others, in connection with the association’s Annual General Assembly taking place in Madrid this year. “We welcome measures taken recently by the Spanish government to

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improve fiscal discipline and labour flexibility and productivity, in particular”, said Marchionne. “Europe is at a critical juncture and urgently in need of evolving into a mature and viable union, adopting a common and co-ordinated approach to economic management.” The main issues on the agenda of the talks in Madrid included the need for: Resolving the difficulties in the Eurozone; Fair free trade with major economies such as India and Japan; Less bureaucracy and a reduced cost of regulation through lean, smart policies; “It is first and foremost the responsibility of the automobile manufacturers to ensure their competitiveness, and all of us pursue that goal head-on”, stressed Marchionne. “But some issue are beyond our reach. What we ask from governments is to facilitate growth, and ensure that the game is fair. It is our collective responsibility to make sure that Europe prospers for a long time to come.”