European sector spotlight

Throughout 2021, sustainability initiatives were top of mind for the automotive industry as the European Commission proposed changes to the Intelligent Transport Systems Directive and moved forward with Euro 7/VII emissions standards that apply to all petrol and diesel vehicles. Regulators have also signalled they will be paying close attention to whether companies adhere to their green obligations, with German authorities fining one company more than 20 million euros for failing to comply with environmental regulations.

Automotive safety will also be a key focus for regulators in 2022, with the first phase of the EU’s General Safety Regulation going into effect in July 2022. This regulation requires that all cars and light vehicles have three advanced driving assistants geared towards increasing passenger safety. Although no longer part of the EU, it is expected that similar requirements will apply in the UK since many driving laws have been transferred for ease of manufacturing.

While product recall numbers are important, they are only part of the story. Here's what you should take away from automotive product safety developments in 2022:

• As part of the European Green Deal, European vehicle emissions standards Euro 7/VII that apply to all petrol and diesel vehicles are scheduled to go into effect during 2022. While its implementation has been delayed, have you begun preparing for these stricter standards and how they may impact your manufacturing process? Will your product recall and crisis plans be updated to handle a recall related to vehicles not meeting emissions standards?
• The EU’s General Safety Regulation goes into effect in July 2022, which will require many vehicles to have three driving assistants: intelligent speed assistant (ISA), lane change warning, and a tyre pressure monitoring system. Are you taking the necessary steps to ensure you are prepared for this new requirement? Have you considered how ongoing supply chain challenges may impact your company’s ability to meet the implementation date?