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The global auto industry is more challenged than many people realize. On the surface, performance is strong. Worldwide sales reached a record 88 million autos in , up 4. Nonetheless, viewed through the lens of two critical performance indicators, the industry is in serious trouble. In that period, average auto maker TSR was only 5. The leading suppliers have done a little better, just beating their costs of capital to enjoy a small positive return, after many years of negative net returns.
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Please contact customerservices lexology. Describe the significance of, and developments in, the automotive industry in the market. The automotive industry is a strategic and significant sector in Spain. It is, alongside other strong industries such as tourism, chemicals, and agriculture and food , one of the important components of the Spanish economy.
Spain is ranked second among European automotive manufacturers, and 12th globally. According to recent figures of industry associations, the automotive industry represents roughly 10 per cent of GDP and more than 87 per cent of all cars and components manufactured in Spain are exported abroad. All major automotive companies have manufacturing units in Spain, with 17 plants currently generating significant activity and direct and indirect employment. What is the regulatory framework for manufacture and distribution of automobiles and automobile parts, such as vehicle-type approval process as well as vehicle registration and insurance requirements?
This takes the form of type-approval homologation , granted by the Spanish Ministry of Energy, Tourism and the Digital Agenda. Pursuant to sections 4 and 5, manufacturers shall demonstrate that the following are type approved in accordance with its provisions: i vehicles, systems, components and separate technical units; ii all new vehicles sold, registered or put into service within the EU; and iii all new systems, components and separate technical units sold or put into service within the EU.
In this respect, manufacturers are obliged to fulfil all the type approval requirements provided for in the same. These obligations include meeting the emission limits set out in Annex I Euro 5 and Euro 6 emissions limits and emission limits for the evaporative emissions test.
Furthermore, manufacturers shall ensure that type-approval procedures for verifying conformity of production, durability of pollution control devices and in-service conformity are also met. Following the granting of type approval, vehicles and their trailers and semi-trailers shall be duly registered with the Vehicles Registry managed by the relevant traffic authority. In this sense, and as it infers from the latter, the registration request must be undertaken by the owner, lessee with a purchase option or long-term lessee.
Insurance requirements apply to the use of vehicles for private or professional use, but the Spanish requirements are not materially different from those that can be found in other European countries. How do automotive companies operating in your country generally structure their development, manufacture and supply issues? What are the usual contractual arrangements? The contractual arrangements and structuring of the development, manufacturing and supply in the Spanish automotive sector do not differ substantially from what occurs in other European countries.
Some particularities may apply in the case of the Canary Islands which enjoys a specific tax regime to protect investment and consumption in that overseas region and represents a challenge in terms of operational and transportation cost , but other than that the situation in Spain is similar to that in neighbouring countries. How are vehicles usually distributed?
Are there any special rules for importers, distributors, dealers including dealer networks or other distribution partners? How do automotive companies normally resolve restructuring or termination issues with their distribution partners?
There is, however, no specific distribution law in Spain unlike in other countries, such as Belgium and therefore general rules of contract law apply - in some cases in combination with franchise regulations, commercial agency rules or other specific subsets of Spanish contract law depending on how the relationship with a particular dealer is organised. There have been legislative efforts in recent years to introduce a new Commercial Code including specific rules for distribution which would encompass automotive wholesale and retail distribution , but this process came to a halt again last year and it is not likely that a distribution law will be passed in Spain in the mid to long term.
Legal disputes between car dealers and manufacturers typically focus on the renegotiation or termination of concession or distribution contracts, while disputes involving suppliers normally relate to purchase levels or price renegotiation particularly with key suppliers that make ad hoc components for specific car models or agree on particular pricing based on minimum purchase volumes.
We understand, however, that these types of disputes are not specific to Spain and can be found in most other European jurisdictions as well. Are there any incentives for investment in the automotive market? Are there barriers to entry into the market?
What impact may new entrants into the market have on incumbents? This rise in production is even more remarkable when we consider that it brought with it an even bigger increase in value: So, from a general point of view, was a very good year for the Spanish automotive industry.
Having said that, years of economic downturn naturally had a significant negative effect on the industry as in other European countries and in this context the Spanish government launched several plans and programmes to incentivise investment in the Spanish automotive market, boost the industry and contribute to generating more sales among Spanish consumers.
In this context, the most important initiative launched by the Spanish government for is the Support Plan for Alternative Mobility, which aims to encourage the purchase of:. In terms of market entrance, there are no substantial legal barriers other than the usual requirements involving the establishment of a business or manufacturing plant in Spain; nor are there any particular restrictions on foreign investment save in the case of investors from countries that are affected by international trade sanctions or embargo regulations.
What are the most relevant automotive-related product compliance safety and environmental regulations, and how are they enforced? Are there specific rules for product recalls? Describe the significance of product liability law, and any key issues specifically relevant to the automotive industry.
How relevant are class actions or other consumer litigation in product liability, product recall cases, or other contexts relating to the automotive industry? Spain does not have a strong tradition in product liability litigation, and there have been no major automotive-related product liability disputes in recent years.
This may change in the following years, as compensations to be paid for personal damages was substantially increased at the beginning of On the other hand, the Spanish Procedural Act of established a completely new system of class actions, giving consumer associations a major role in these proceedings.
However, to date these actions have been used in a very small number of cases, and rarely with regard to the automotive industry.
This does not mean that there have been no product recalls in the sector. The automotive industry has suffered several product recall cases in Spain, some of them particularly relevant. However, the main consequences of these product recalls have been reputational damages, and only very few relevant fines and sanctions have been imposed in recent years.
What competition and antitrust issues are specific to, or particularly relevant for, the automotive industry? Is follow-on litigation significant in competition cases? EU Regulation No. The main recent investigation and sanctioning proceedings conducted by the National Commission on Markets and Competition NCMC in the Spanish automotive sector include:.
As regards follow-on litigation, in recent years there has been a significant increase in private actions for damages suffered by victims of cartels in Spain ie, civil law damage claims before the courts following administrative law sanctioning proceedings before the NCMC. In that regard, given the recent activity of the NCMC and the European Commission against original equipment manufacturers, spare parts manufacturers and car dealers, the automotive sector is expected to be subject to increased damage litigation before Spanish courts in the near future.
In this regard, it should be noted that a very large Spanish consumer association called OCU has publicly announced its intention to lodge collective redress actions class-action style on behalf of consumers affected by those cartel decisions adopted by the NCMC between and in relation to car manufacturers and distributors or retailers. What kind of disputes have been experienced in the automotive industry, and how are they usually resolved?
Are there any quick solutions along the supply chain available? While class actions and litigation around recalls or product safety are rare, dispute and claims proceedings do affect the Spanish automotive industry. A great percentage of these disputes are related to business restructuring ie, where a car manufacturer ceases its relationships with certain dealers.
In recent years there have also been many insolvency related disputes. More recently, since a number of players in the automotive industry have been involved in antitrust litigation proceedings. Arbitration is not very common in automotive-related litigation. In general, the Spanish system provides claimants with the possibility of obtaining quick and provisional solutions through interim injunctions, though it is fair to say that these are slower to obtain than those before some other European courts.
What is the process for dealing with distressed suppliers in the automotive industry? Distressed situations and insolvency proceedings are complex. One particularity of Spanish insolvency law is that the mere declaration of insolvency of a company is not a valid cause for termination of agreements entered into by that company. Are intellectual property disputes significant in the automotive industry?
If so, how effectively is industrial intellectual property protected? Are intellectual property disputes easily resolved? In relation to intellectual property disputes, we first need to make the following preliminary remarks:. Overall this data shows that, in comparison with other industries for instance, the pharmaceutical industry , the number of disputes in the automotive sector does not appear to be very significant in Spain.
However, we would be reluctant to reach such conclusion given that the figures provided above may not reflect reality. Moreover, Spanish courts - particularly, the Barcelona Commercial Courts and, of course, the EU Trademark and Design Court - have developed expertise in the field of IP law over a number of years and are rather sensitive towards the protection of IP rights. In our recent experience, these courts would decide upon ex parte preliminary injunctions within 24 to 48 hours.
Common proceedings - with a hearing - may take 8 to 12 weeks. A judgment in the first instance may be issued within 12 to 18 months of filing - including infringement and invalidity claims. Finally, given the lack of technical background of Spanish courts, expert evidence in patent cases is key - as courts will rely substantially on it - and parties will usually file more than one expert opinion to support their positions.
Are there specific employment issues that automotive companies should be aware of, such as with trade unions and works councils? As in other European countries, in Spain the legal relations arising from an employment relationship are governed by legal provisions and agreements emanating from national and international legislative bodies international treaties, local laws and regulations , the will of the parties collective bargaining agreements, employment contracts and the customs and practices of the company itself company agreements, company practices.
Most of the employment regulations established in the laws apply to all companies, without any specific regulations regarding specific industries or sectors except regulations on health and safety, which may vary depending on the business activity concerned.
Having said the above, in Spain it is possible to enter into collective bargaining agreements CBAs ie, agreements that have been negotiated and concluded by employers and employee representatives and which are applicable to a more or less broad sector at both a national or provincial level, as well as, on a smaller scope, those applicable to a company or work centre. These CBAs must respect the minimum rights established by law, and generally improve the employment conditions in the applicable area to levels above and beyond the minimum conditions legally set forth.
As for automotive companies, a general CBA for the metal industry typically applies to companies in the automotive sector and related companies. It is also important to point out that automotive companies in Spain are highly unionised.
They have not only works councils, but also national unions involved in relevant decisions. Likewise, in the case of renowned automotive companies, political involvement is also common when relevant decisions are taken such as investments, divestments and restructurings ; the scope of the political involvement regional or even national will depend on the company affected, its economic or social impact in the area, and the type of measure to be taken. What are the most important legal developments relating to automotive technological and mobility advances?
Autonomous driving, connected vehicles and other recent technical developments, as well as car-sharing and hailing apps and other collaborative economy consumer models, do not have their own specific set of legal rules in Spain and therefore general principles of law and regulation must be applied to these new business models - which is often a challenge and does not guarantee legal security at all levels.
There is, however, a lot of activity in this field in Spain and therefore it is likely that, at its own initiative or prompted by EU legislation, the Spanish government will develop more specific rules in these fields in the next few years. The most notable legal development at this stage relates toe various court cases that have been brought against Uber and Cabify before the Spanish courts, primarily by taxi driver associations.
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Register now for your free, tailored, daily legal newsfeed service. Automotive in Spain Hogan Lovells. Spain April 4 Overview Market Describe the significance of, and developments in, the automotive industry in the market.
Regulation What is the regulatory framework for manufacture and distribution of automobiles and automobile parts, such as vehicle-type approval process as well as vehicle registration and insurance requirements? Insurance requirement Insurance requirements apply to the use of vehicles for private or professional use, but the Spanish requirements are not materially different from those that can be found in other European countries.
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Automotive engineering , along with aerospace engineering and naval architecture , is a branch of vehicle engineering , incorporating elements of mechanical , electrical , electronic , software , and safety engineering as applied to the design, manufacture and operation of motorcycles , automobiles , and trucks and their respective engineering subsystems. It also includes modification of vehicles. Manufacturing domain deals with the creation and assembling the whole parts of automobiles is also included in it. The automotive engineering field is research -intensive and involves direct application of mathematical models and formulas. The study of automotive engineering is to design, develop, fabricate, and test vehicles or vehicle components from the concept stage to production stage. Production, development, and manufacturing are the three major functions in this field. Automobile Engineering is a branch study of engineering which teaches manufacturing, designing, mechanical mechanisms as well operations of automobiles. It is an introduction to vehicle engineering which deals with motorcycles, cars, buses, trucks, etc. It includes branch study of mechanical, electronic, software and safety elements. Some of the engineering attributes and disciplines that are of importance to the automotive engineer and many of the other aspects are included in it:.
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Automotive in United Arab Emirates
Please contact customerservices lexology. Describe the significance of, and developments in, the automotive industry in the market. The UAE relies heavily on imports, with nearly all cars being imported from manufacturing facilities abroad. Aside from a small number of factories that assemble components for trucks and buses, as well as factories that produce armoured vehicles, there is no significant automotive manufacturing activity taking place within the UAE. Any increases in public spending on development projects and general infrastructure to support such an increase in population will generally bolster the automotive sector, through demand for trucks and other commercial vehicles required for such growth. However, if oil prices remain depressed this may affect the level of public spending, which may in turn affect automotive demand. The UAE is also becoming a hub and re-export centre for vehicle parts and components in the Gulf region. What is the regulatory framework for manufacture and distribution of automobiles and automobile parts, such as vehicle-type approval process as well as vehicle registration and insurance requirements?
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Who are the top automotive suppliers in Germany and which are the largest worldwide? Definition, examples, trends and industry knowledge — simply explained and at a glance! Automotive supplier are defined as: Companies that manufacture goods that are used in the production process of an automobile or become part of an automobile, such that they supply these goods directly or indirectly to an automobile manufacturer, synonymous with Original Equipment Manufacturer OEM.
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Please contact customerservices lexology. Describe the significance of, and developments in, the automotive industry in the market. The automotive industry is a strategic and significant sector in Spain. It is, alongside other strong industries such as tourism, chemicals, and agriculture and food , one of the important components of the Spanish economy. Spain is ranked second among European automotive manufacturers, and 12th globally. According to recent figures of industry associations, the automotive industry represents roughly 10 per cent of GDP and more than 87 per cent of all cars and components manufactured in Spain are exported abroad.
Мидж как ни чем не бывало стояла в приемной возле двойной двери директорского кабинета и протягивала к нему руку ладонью вверх. - Ключ, Чед. Бринкерхофф покраснел до корней волос и повернулся к мониторам. Ему хотелось чем-то прикрыть эти картинки под потолком, но .