ACEM REPORT 2012 by Altitude Design

ACEM REPORT The Motorcycle Industry in Europe

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ACEM REPORT The Motorcycle Industry in Europe

Association des Constructeurs EuropĂŠens de Motocycles

ACEM REPORT The Motorcycle Industry in Europe

Table of Content ACEM IN BRIEF.............................................................................................................................................................................................................................................................................................. ..............................................................................................................................................................................................................................................................................................5 .............................................................................................................................................................................................................................................................................................. The ACEM Members.................................................................................................................................................................................................................................................................................. Members .................................................................................................................................................................................................................................................................................. ..................................................................................................................................................................................................................................................................................5 Manufacturers...................................................................................................................................................................................................................................................................................... Manufacturers ......................................................................................................................................................................................................................................................................................5 ...................................................................................................................................................................................................................................................................................... National Associations...................................................................................................................................................................................................................................................................... Associations ...................................................................................................................................................................................................................................................................... ......................................................................................................................................................................................................................................................................5 Foreword by Hendrik von Kuenheim .......................................................................................................................................................................................................................................... ..........................................................................................................................................................................................................................................6 Introduction by Jacques Compagne, ACEM Secretary General ............................................................................................................................................................................... ...............................................................................................................................................................................7 Who we are .................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................8 Our Mission .......................................................................................................................................................................................................................................................................... ..........................................................................................................................................................................................................................................................................9 The Industry philosophy: responsible commitment..................................................................................................................................................................................9 The Motorcycle Industryâ&#x20AC;&#x2122;s Policy Agenda............................................................................................................................................................................................................................. .............................................................................................................................................................................................................................13 New type-approval Regulation for L-category vehicles......................................................................................................................................................................................... .........................................................................................................................................................................................13 MOBILITY......................................................................................................................................................................................................................................................................................... .........................................................................................................................................................................................................................................................................................17 The Quality of our Lives Relies on Mobility................................................................................................................................................................................................... ...................................................................................................................................................................................................18 More Powered Two-Wheelers would ease congestion ........................................................................................................................................................................ ........................................................................................................................................................................20 Urban Mobility................................................................................................................................................................................................................................................................ ................................................................................................................................................................................................................................................................21 Leisure, Tourism and Sport...................................................................................................................................................................................................................................... ......................................................................................................................................................................................................................................24 ROAD SAFETY............................................................................................................................................................................................................................................................................... ...............................................................................................................................................................................................................................................................................26 The Industry Strategy................................................................................................................................................................................................................................................. .................................................................................................................................................................................................................................................26 Improving the Knowledge...................................................................................................................................................................................................................................... ......................................................................................................................................................................................................................................26 The Vehicle ....................................................................................................................................................................................................................................................................... .......................................................................................................................................................................................................................................................................28 Advanced Braking Systems................................................................................................................................................................................................................ ................................................................................................................................................................................................................28 Lighting and conspicuity .................................................................................................................................................................................................................... ....................................................................................................................................................................................................................30 ITS....................................................................................................................................................................................................................................................................... .......................................................................................................................................................................................................................................................................30 Tampering.....................................................................................................................................................................................................................................................31 Licensing ............................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................31 31 Guidelines on Motorcycle equipment ............................................................................................................................................................................................................ ............................................................................................................................................................................................................33 33 The Infrastructure ......................................................................................................................................................................................................................................................... .........................................................................................................................................................................................................................................................33 2

ENVIRONMENT ............................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................35 Regulated egulated Pollutants................................................................................................................................................................................................................................................... Pollutants................................................................................................................................................................................................................................................... ...................................................................................................................................................................................................................................................35 ACEM proactive proposals...................................................................................................................................................................................................................................... proposals ......................................................................................................................................................................................................................................36 Motorcycle emissions.................................................................................................................................................................................................................................................36 CO2......................................................................................................................................................................................................................................................................................... .........................................................................................................................................................................................................................................................................................38 On-board Diagnostics................................................................................................................................................................................................................................................ ................................................................................................................................................................................................................................................38 Noise..................................................................................................................................................................................................................................................................................... .....................................................................................................................................................................................................................................................................................39 ..................................................................................................................................................................................................................................................................................... Periodic Inspection...................................................................................................................................................................................................................................................... ......................................................................................................................................................................................................................................................39 ...................................................................................................................................................................................................................................................... ECONOMY AND COMPETITION ....................................................................................................................................................................................................................................... .......................................................................................................................................................................................................................................41 The PTW Sector at a Glance ................................................................................................................................................................................................................................... ...................................................................................................................................................................................................................................41 Internal Market ............................................................................................................................................................................................................................................................... ...............................................................................................................................................................................................................................................................43 The increasing Competition in the PTW sector......................................................................................................................................................................................... sector ......................................................................................................................................................................................... .........................................................................................................................................................................................43 Main Market Trends ..................................................................................................................................................................................................................................................... .....................................................................................................................................................................................................................................................44 44 The manufacturing of motorcycles................................................................................................................................................................................................................... motorcycles ...................................................................................................................................................................................................................46 46 Employment .................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................48 The downstream activity..........................................................................................................................................................................................................................................50 The upstream activities : a tentative estimation........................................................................................................................................................................................ estimation ........................................................................................................................................................................................52 The Europe PTW : an overview............................................................................................................................................................................................................................. overview.............................................................................................................................................................................................................................53 Internal market and competition ....................................................................................................................................................................................................................... .......................................................................................................................................................................................................................54 International Trade : A Strategic Priority ......................................................................................................................................................................................................... .........................................................................................................................................................................................................55 HOW DOES ACEM WORK?................................................................................................................................................................................................................................................................. .................................................................................................................................................................................................................................................................58 ACEM Organisational Chart: .............................................................................................................................................................................................................................................. ..............................................................................................................................................................................................................................................58 The Activity of ACEM’s Committees ............................................................................................................................................................................................................................. .............................................................................................................................................................................................................................59 A presentation by ACEM’s Coordinating Committee Chairman...................................................................................................................................................... Chairman ......................................................................................................................................................59 Market and Transport Policy Committee........................................................................................................................................................................................................ Committee ........................................................................................................................................................................................................60 Road Safety Committee ............................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................61 Environment Committee.......................................................................................................................................................................................................................................... Committee..........................................................................................................................................................................................................................................62 Electric Vehicle Committee ..................................................................................................................................................................................................................................... .....................................................................................................................................................................................................................................62 Legal Affairs Committee............................................................................................................................................................................................................................................ Committee............................................................................................................................................................................................................................................63 ACEM Secretariat ....................................................................................................................................................................................................................................................................... .......................................................................................................................................................................................................................................................................64

ACEM REPORT The Motorcycle Industry in Europe

ACEM IN BRIEF • ACEM means “Association des Constructeurs Européens de Motocycles”. ACEM represents the Motorcycle Industry in Europe and, as such, is one of many interest groups that contribute to an informed decision-making process in the EU. • ACEM has thirty members, out of which 13 are manufacturers and 17 national PTW industry associations in Europe. • ACEM, based in Brussels, was established in 1994 from the merger of COLIMO (Comité de Liaison de l’Industrie du Motocycle) established in 1962 and composed of eight national associations, and ACEM founded in 1990 by the eight main European companies in the field. • ACEM provides clear and factual information concerning the European powered two-wheeler industry and fosters the understanding of the sector’s importance, its complexity and its contributions to society.

The ACEM Members Manufacturers

National Associations

• BMW Motorrad • Bombardier dier Recreational Products • Ducati • Harley Davidson • Honda • Kawasaki • KTM K • Peugeot • Piaggio • Suzuki • Yamaha Y • Triumph • Victory ictory Motorcycles

• AIA, Automotive Industry Association (Czech Republic) • AIMID, Association of Irish Motorcycle Importers & Distributors • AMVIR, Association of Motor Vehicle Importers-Representatives (Greece) • ANCMA-Confindustria, Associazione Nazionale Ciclo Motociclo Accessori (Italy) • ANESDOR, Asociacion Nacional de Empresas del Sector de dos Ruedas (Spain) • Arge2Rad, Association of PTW Manufacturers and Importers (Austria) • C.S.I.A.M., Chambree Syndicale des Importateurs d’Automobiles et de Motocycles (France) • CSNM, Chambre Syndicale Nationale du Motocycle (France) • EQUAL, European Quadricycle League • FEBIAC, Automobile and cycle industry association (Belgium) • FFÖ, Fachverband der Fahrzeugindustrie Österreichs (Austria) • IVM e.V, Industrie-Verband Motorrad (Germany) • MCIA, Motorcycle Industry Association (UK) • McRF, Moped & Motorcykelbranschens Riksförbund (Sweden) • MO MOTED, Motorcycle Industry Association (Turkey) • PZPM, Polski Zwi∂zek Przemysłu Motoryzacyjnego (Poland) • RAI, Association ssociation Nederlandse Vereniging De Rijwiel en Automobielindustrie (The Netherlands)

ACEM REPORT The Motorcycle Industry in Europe

Foreword by Hendrik von Kuenheim, ACEM President Innovating our mobility paradigm The impact of the crisis on our sector has been severe. Over the period 2007-2011 the whole European market shrunk by more than one third wiping out some historic brands. The market situation is presently still depressed, and whilst we need to remain positive there is no real tangible sign of recovery. In these conditions, better regulation such as ensuring a reliable and favourable regulatory framework, based on overall assessment of economic and social impact, are of utmost importance, in particular for smaller industries. A new EU type-approval framework for our sector is currently under discussion in Brussels – I can only stress again the absolute need for the industry to have a stable, predictable and especially a feasible regulatory environment to underpin our long-term investment strategies. The role of Powered Two-Wheelers has recently been emphasised in the White Paper on Transport published by the European Commission, which stresses “the use of smaller, lighter and more specialised road passenger vehicles must be encouraged” for urban mobility and commuting. This industry has a long tradition in providing mobility solutions answering this policy objective – ACEM manufacturers in particular have shown their ability to innovate, with motorcycles, scooters, tricycles and quadricycles which have brought a new mobility paradigm to our streets. Studies confirm the self-evident benefits of the participation of such vehicles in a multimodal transport system, in terms of increased, more efficient mobility – they allow shorter travelling times, reduce congestion and space occupation, overall lessening the impact on the environment and the infrastructure. 6

Looking ahead to 2020 and beyond, the European strategy on clean and energy efficient vehicles also clearly includes ACEM members amongst the solution providers, in particular in urban mobility. The CARS21 interim report puts a strong emphasis on electromobility, calling for the further development of vehicle technology, recharching standards and infrastructure, from a niche into a segment of the market. This requires investment but just as importantly or perhaps more importantly, building consumer confidence. Electromobility is becoming a reality in some segments of our production, due to the specialised use and light weight of our products, with vehicles already on the market, others close to market introduction and more in the pipeline. Whilst the light vehicle electric segment is still small, it has been doubling year on year, and is forecast to reach 50,000 units sold yearly in the EU in 2020. However, strong political support is necessary to further develop this reality allowing the demand of these innovative products to meet the offer. A main priority for PTW manufacturers remains the further improvement of energy efficiency in order to contribute to emission reduction objectives. I believe it is therefore our shared interest to support the growth of this transport mode, and would argue this will also prove beneficial to the wider automotive sector, as it will contribute to ease congestion and increase quality of life especially in urban environments. The year 2012 will be challenging in light of the uncertain development of the economies in major markets around the world and in particular in Europe, where it is extremely important that confidence in the Euro zone be restored. The European Motorcycle Industry strives to maintain its leadership in safety and environmental technologies, thereby contributing to sustainable growth in Europe and abroad.

Hendrik von Kuenheim PRESIDENT of ACEM and CEO of BMW Motorrad

Introduction by Jacques Compagne, ACEM Secretary General Putting the Motorcycle Industry on the map Ever since it was founded in 1994, ACEM has been contributing to enriching the policy debate at European level on issues of interest to the motorcycle sector. Over the years, as a reflection of a very dynamic industry able to develop innovative and exciting solutions for urban mobility and leisure, ACEM has grown in terms of membership, with the active presence of all main manufacturers of L category vehicles (mopeds, motorcycles, tricycles, quadricycles) and a network of National associations As a result, ACEM has also become more active in new fields, bringing forward the views of the Motorcycle Industry on important issues ranging from purely technical dossiers such as type-approval to more societal topics such as mobility, safety, environment. It has also broadened its activities in economic areas, developing market analysis tools and contributing to consultations carried out by the EU within trade negotiations with other regions of the

world. Finally, it has been increasingly contributing to conveying the vision of this industry, in the field of individual passenger transport and logistics, by taking part to initiatives such as CARS21, European research projects and debates about innovation and the future of transport. In these difficult economic times, the role of ACEM as an interface between the motorcycle sector, officials and policy makers takes an even more fundamental dimension, in order to inform about the specificities of this industry and the wide range of specialised vehicles it produces, our contribution to the economy and employment in the EU, and the opportunities which need to be seized, in the interest of the sector and society as a whole. This second edition of the ACEM Report wishes to provide an insight into the Motorcycle Industry and an overview of what this industry stands forresponsible commitment to more sustainable mobility, today and in the future.

Jacques Compagne SECRETARY GENERAL of ACEM

ACEM REPORT The Motorcycle Industry in Europe

Who we are ACEM, the Motorcycle Industry in Europe, is the professional body representing the interests and combined skills of 13 Powered TwoWheelers manufacturers, and 17 national associations out of 13 European countries. ACEM directly represents a total of 25 Powered Two-Wheeler brands. In Europe over 150.000 jobs depend on the Powered Two-Wheeler industry. The aggregated turnover of the 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 are responsible for 90% of the production and up to 80% of the European Powered Two-Wheeler market which culminated at 2.7 million units in 2007. The variety of products offered by ACEM manufacturers are represented by the large amount of styles and segments such as moped, scooter, street, naked, super-sport, touring, supermoto and off-road bikes. ACEM was created in 1994 by the merger of two Associations of manufacturers of Powered Two-Wheelers, namely COLIMO (Comité de Liaison de l’Industrie du Motocycle) established in 1962 and composed of eight national associations; and ACEM (Association des Constructeurs Européens de Motocycles) founded in 1990 by the eight main European companies in the field. Upon its creation, the manufacturers of motorcycles in Europe decided to maintain the name ACEM as a sign of continuity of their presence in Brussels, whose legal identity is Groupement Européen d’Interêt Economique according to European law. The scope of ACEM has expanded together with the growing competences of the European Union and related activities within Member States. ACEM covers issues and technical requirements in policy 8

fields such as environment, road safety, trade, taxation and transport seeking a broad view of the complex economic, social, political, and legal issues surrounding European integration that all together represent challenges and opportunities for the Motorcycle Industry.

Victory Motorcycles is ACEM’s 13th manufacturer During the General Assembly held in Oxford on 25 March, ACEM welcomed Victory Motorcycles as the 13th manufacturer in the association. Victory Motorcycles is based in Minnesota, United States. It began production in 1998. Its parent company, Polaris Industries, created the firm enriching its line-up of light vehicles. Victory products are American-style motorcycles with V-twin engines and touring, sport-touring, and cruiser configurations. In addition to motorcycles, Polaris Inc is a manufacturer of offroad vehicles (Quadricycles and All Terrain Vehicles, Side-by-Side Vehicles and Snowmobiles). Polaris markets its products around the world. Polaris’ annual revenue in 2010 was approximately 2 Billion US Dollars (1.5 B Euros), with approximately 12% of total sales is from EU. Victory sells motorcycles in North America, Europe, and other global markets with a substantial, growing subsidiary and distributor network for sales and service in Europe. Victory Motorcycles has been selling whole vehicle typeapproved motorcycles in the EU market since calendar year 2009. The Model Year 2012 line-up includes 14 EU models covered by four type approvals.

Our Mission  TTo o develop products as socially responsible solutions to new mobility and sustainability challenges,  to o support European Road Safety Action Programmes,  to o minimize the environmental impact of our products and processes,  to establish a strong competitive and profitable industry in Europe.

The Industry philosophy : responsible commitment The process of market globalisation, the effects of a serious world economic crisis and the entry into force of the Lisbon Treaty all have consequences on the lives of European citizens and businesses. Industry responsibility now extends not only to the needs of the market, but also to its employees, the environment and society as a whole. The principle of sustainable development is synonymous with this philosophy. It is based on the fundamental belief that this generation should not live at the expense of the next.

jobs through innovative and problem-solving expertise are just as important as the commitment to the environment, society and open dialogue. This long-term, value-oriented philosophy is exemplified by the ACEM missions, positions and initiatives and every member of ACEM is called upon to implement these objectives in its own sphere of activity. In this respect, ACEM members put forward their views on policies having an impact on the Motorcycle Industry and work towards developing a constructive dialogue with officials and decision-makers.

The Motorcycle Industry in Europe is committed to applying the principles of sustainability as a key part of the effort to develop its market and value. Manufacturers wish to contribute to the development of a vision for the future of transportation, and to meet the expectations placed on the Powered Two-Wheeler sector. Creating and safeguarding

The Motorcycle Industry in Europe will continue to bring its contribution, shaping the future and searching for solutions to tomorrow’s transport challenges, while setting an example of long term commitment to corporate and social responsibility.

The Motorcycle Industry in Europe ACEM Members Brands Associations

AIMID

ACEM REPORT The Motorcycle Industry in Europe

What are Powered Two-Wheelers? • The term “Powered Two-Wheeler” (PTW) covers a wide range of vehicles from mopeds, scooters and other small capacity motorcycles, ideal for urban journeys, to large capacity custom, sports and touring models. • PTW are not limited to single track motorised vehicles. Changes in user behaviour and economic factors have lead to the development of new three and four wheeled vehicle concepts which increased the PTW family. • Powered Two-Wheelers fall under the L-category legal definition, which also includes tricycles, minicars and light commercial quadricycles. • These vehicles, since the early eighties, have experienced tremendous technical and design improvements. PTW manufacturers have developed and marketed safer, more affordable, more economical to run and more comfortable products. Riding a PTW has also become easier and today the range of available models can satisfy the most varied user needs.

The Motorcycle Industry’s Policy Agenda The new Type-Approval Regulation for L-category vehicles Type-approval, or homologation, is the test any vehicle needs to successfully pass to be deemed allowed on public roads.

recognition of the quality of our proposals and the responsible attitude of ACEM manufacturers regarding their societal obligations.

In October 2010 the European Commission published its proposal concerning the Regulation “on the approval and market surveillance of two- or three-wheel vehicles and quadricycles”. Previous provisions regulating L-category emissions and safety requirements dated back to 2002. This document is a good basis for the legislative process, but ACEM believes that much remains to be done to enable a smooth transition to a solid and feasible policy framework.

COM 2010/542, as the industry’s proposal is now known, is highly technical presenting a series of provisions in the fields of categorisation, simplification, environment, safety and market surveillance. All of them will have an impact on the production planning and cost of the products. Every effort must be made to ensure that the “framework” is comprehensive in its scope, coherent with current production and commitments, allowing sufficient lead-time for manufacturers, component suppliers and administrations to adapt to the many changes proposed. Furthermore, any careful evaluation must take into consideration the current economic context.

It must be stated beforehand that one of the most important and welcome outcomes of this Regulation will be the creation of a level playing field, as the provisions related to market surveillance and many technical aspects will result in ensuring the conditions for a healthy and fair competition within the motorcycle sector, provided that action means are deployed at national level in a coordinated way. ACEM appreciates also that some of the industry proposals have been incorporated in the EC proposal; mandatory Automatic Headlamp On, adopted by ACEM Members since 2003, is one of them. It is perceived as

This regulation falls during a critical time for the motorcycle industry. Only an unbiased understanding of the time frame required by the industry to develop a new product from the concept research phase to the actual launch on the market will avoid an unnecessary increase of costs while ensuring employment and the competitiveness of the sector in Europe.

* Plenary vote in the European Parliament is expected to be held by in spring 2012.

ACEM REPORT The Motorcycle Industry in Europe

On December 5th 2011 the European Parliament’s Committee on the Internal Market and Consumer Protection (IMCO) voted on its report on the European Commission proposal. The IMCO Committee reviewed the introduction date of the first measures, without however reaching a complete streamlining of the complex set of new prescriptions foreseen for the type-approval of L-category vehicles. Acknowledging an unprecedentedly difficult market environment for the motorcycle industry, the vote of the IMCO Committee took into account the demands of the industry for feasible lead-time before introducing new typeapproval requirements for L-category vehicles. ACEM has been calling for a rationalization of the EC proposed timetable of the regulation made complex due to the creation of new vehicle categories and a multitude of different prescriptions unevenly scattered over a nine years period. The amendments voted by the IMCO Committee make an attempt at streamlining the calendar, without however reaching necessary rationalization.

The IMCO Committee also voted to delete one emission reduction step for all categories of vehicles except mopeds, however tightening the reduction process and making ABS mandatory on all motorcycles as from 2016. On this point, ACEM deplores the outcome of the vote in IMCO, which would translate into a heavier burden due to the added costs of more stringent environmental and safety measures. This applies in particular to light motorcycles and scooters of the 125cc class (L3-A1), which form the core of the EU ailing market and provide urban mobility and social cohesion benefits to citizens, as recognised by the IMCO report itself. For this category of motorcycles, ACEM regrets that safe advanced braking systems alternatives to ABS such as Combined Braking Systems have been scrapped from the available safety measures, effectively wiping out years of investments in research and development. Furthermore, IMCO voted against amendments supporting international harmonisation in terms of the durability test procedure, which brings unnecessary duplications of tests and costs to industry and, in the end for the consumer, without any measurable environmental benefit.

The point of view of Mr Wim van de Camp MEP, Rapporteur on COM 542/2010 According to Mr Wim van de Camp, EP Rapporteur on this regulation, IMCO has sought to take into account the current difficult business environment for the whole sector and the need to support jobs in Europe: “We want to ensure sufficient time is available for the development of the technical details accompanying this main text. Manufacturers need lead-time to apply the ambitious requirements of this complex regulation. Following the vote that took place, and in our discussions with Council and Commission, it will be our priority to verify the calendar so as to ensure streamlining of the prescriptions is compatible with industrial processes. Finally, especially in light of the current economic difficulties, before taking a final position IMCO will run a study on the economic impact of the environmental and safety goals we proposed.”

* The final vote of the European Parliament is expected to be held in spring 2012. 14

ACEM is a participant in CARS21. As part of the European Commissionâ&#x20AC;&#x2122;s modern industrial policy, the CARS 21 (Competitive Automotive Regulatory System for the 21st century) process, which was initially launched in 2005, aims to make recommendations for the short-, medium-, and long-term public policy and regulatory framework of the European automotive industry. This framework enhances global competitiveness and employment, while sustaining further progress in safety and environmental performance at a price affordable to the consumer.

Committed to improve safety and reduce emissions according to a realistic and progressive roadmap, ACEM members continue to underline to need for a feasible timeline, taking into account the diversity of L-category vehicles, their different usage purposes and costs. 15

ACEM REPORT The Motorcycle Industry in Europe

MOBILITY “Our mobility paradigm is changing“. The European Commission adopted a comprehensive “Roadmap to a single European Transport Area” which aims at achieving a competitive and resource efficient transport system and increasing mobility, removing major barriers in key areas and fuelling growth and employment by 2050. At the same time, the proposal wants to dramatically reduce Europe’s dependence on imported oil and cut carbon emissions in transport by 60% by 2050. “The choices we make today will determine the shape of transport in 2050,” said Siim Kallas, the European commissioner for transport, as he launched the Commission’s white paper for transport on 28 March in Brussels. “Curbing mobility is not an option, nor is business as usual,” he added. The long-awaited paper the course of European Union transport policy for the next decade, aiming to pave the way to a greener transport network that is no longer dependent on fossil fuels, as well as pulling down the remaining barriers to a single market in transport.

With this White Paper the European Commission follows the steps indicated by the European Council decision adopted in May 2010 which set the foundations of a decarbonised road transport based on clean and energy-efficient vehicles. The ultimate objective of this Council Decision was to boost the competitiveness of the European automotive industry and included two- and three-wheelers and quadricycles, given their increasing role in urban mobility.

Goals of the Commission - Halve the use of conventional-oil-powered cars in urban transport by 2030 and phase them out entirely in cities by 2050. - By 2050 the majority of passenger journeys between 200km and 1.000km should be made by rail. - Reduce road-accident fatalities to almost zero by 2050.

Key goals (see panel) include halving the use of conventional-oilpowered cars by 2030 in urban areas and phasing them out entirely in city centres by 2050. Another goal is that all passenger journeys between 200 and 1,000 kilometres should be made by rail, rather than by air. These aims are part of a wider strategy to reduce greenhouse-gas emissions from transport by 60% by 2050, compared to 1990 levels. The Commission’s strategy encourages “the use of smaller, lighter and more specialised road passenger vehicles” leading to a “substantial contribution in reducing the carbon intensity of urban transport while providing a test bed for new technologies and opportunity for early market deployment”. 17

ACEM REPORT The Motorcycle Industry in Europe

As regards to urban transport, the White Paper also proposes the gradual phasing out of ‘conventionally-fuelled’ transportation, arguing that “cities suffer most from congestion, poor air quality and noise exposure and that urban transport is responsible for about a quarter of CO2 emissions from transport, and 69% of road accidents occur in cities”. According to many stakeholders including ACEM, while setting a considerable amount of acceptable goals the Commission fails to maintain a technology neutral stance by prematurely indicating internal combustion engines as on their way out.

Did you know? • That PTWs are crucial for people’s mobility? • That PTWs are very cost-efficient transport means? • That PTWs are important instruments of social cohesion? • That PTWs reduces travel times? • That travelling by PTWs reduce congestion? • That PTWs help to reduce the negative impact on the environment? • That PTWs help to reduce CO2 emissions in cities? • That finding a parking place for a PTWs is an easy task? • That in the EU 35 million citizens use PTWs?

The Quality of our Lives Relies on Mobility Mobility is and will continue to be a major contributor to the social and economic wealth of the European Union and a key element for its future prosperity. Europe’s growth has been accompanied and fostered by a more and more performing transport system. Citizens benefited from a better transport system, exploiting it for their own education, work or social purposes, with positive effects on the society as a whole.

same time social, economic and environmental factors. Each of these pillars is of equal importance and they all need to be taken into account when assessing the sustainability of transport policy. Transport policy should be based on: • Fair and equal competition between and within transport modes;

Road transport plays a vital role in modern economies, as 90% of people in the EU travel by road. All citizens should benefit from a transport system whose design and management corresponds to their needs. Finding a balance between the need to pursue socio-economic objectives of growth and development and the need to further reduce the negative effects that transport may cause to society will remain the key challenge in the quest for a more sustainable mobility over the coming years. This is the main challenge of sustainable mobility, which must address at the 18

• Freedom of choice for citizens to select the most appropriate transport mode for their mobility needs; • Transport efficiencyy encouraging the most suitable and effective mode of transport according to the circumstances; • Integration of Powered Two-Wheelers in transport policy, in particular in urban areas.

Co-modality, an opportunity for European cities... Transport policy in cities must build on integrating all modes. It must preserve and enhance the advantages of each mode while working at a better integration to the benefit of the users. In a period of dramatic socioeconomic repercussions due to the current global financial and economic crisis, transport policy should not fall again into the trap of artificially forced and inefficient modal shift policies, but instead to reason in terms of true co-modality and optimisation of each mode of transport. Individual and collective transport offer different services and therefore fulfil different needs. Innovative mobility should be about enabling transport users to make their choice, based on objective and reliable information, and planning their journeys according to their specific needs. This may involve resorting to different modes within one single journey, or to different vehicles for different journeys. A forced modal shift policy based on traffic restrictions and increased costs for individual transport will lead to a high loss of welfare without the expected benefits for mobility and quality of life. L-category vehicles, such as mopeds, motorcycles, tricycles and quadricycles, widen the transport offer in their own right and as part of a true co-modal approach to mobility. Policy makers looking to meet citizens’ expectations need to exploit every available tool. Smart individual mobility can contribute to change our transport paradigm, through innovation. Quality of life depends on our capacity of innovating our mobility.

ACEM REPORT The Motorcycle Industry in Europe

More Powered Two-Wheelers would ease congestion 10% more motorcycles used for commuting equal to 40% less traffic jams, concludes a study conducted by Transport & Mobility Leuven. If 10% of car drivers would give up their car for a motorcycle or a scooter, traffic congestion would be reduced by 40%, according to a study performed in one of Belgium’s most congested routes, typical of Europe’s densest urban areas. As the European Commission is seeking to promote a new culture of mobility aiming at reducing emissions and improving quality of life, part of the solution could come from Powered Two-Wheelers. While the recently published White Paper on Transport struggles to strike a balance between individual needs for mobility and the ambitious targets making transport more efficient, the study finds out that if 25% of all commuting trips were made on a PTW, congestion could even be a thing of the past. The study performed by Transport & Mobility Leuven shows that the inclusion of motorized two-wheelers is definitely the most realistic, feasible and affordable answer to effectively address the problem of congestion and its negative effects on the daily lives of European commuters. Motorcycles and scooters represent a strong untapped potential to improve mobility, promising to deliver results that other options - such as cycling or public transport – most of the time are unable to match.

The investigation commissioned by FEBIAC, the Belgian car, motorcycle and bicycle distributors’ association focuses on a case study, conducted on the section Leuven-Brussels on the E40 highway during rush hour, based on the traffic statistics of a regular work day during the month of May 2011. The results showed that “if on this trip and during this peak period, 10% of drivers swap their car against a motorcycle or scooter, this has obvious consequences on the extent of the traffic jam.” By extrapolating these observations to the entire road network, the study makes indicative conclusions: “15,000 hours lost in traffic per day could be avoided in Belgium, equivalent to a total time savings of approximately 350,000 € per day.” Shorter traffic jams that are reabsorbed faster have an environmental advantage too. However, no matter how important the benefits of this modal shift, road safety must be kept in mind. Appropriate motorcycle rider training and a safe behaviour adopted by all road users is a priority to reduce risk. The increased number of motorized two-wheelers on the roads has generated increased attention on the part of motorists accustomed to seeing more motorcyclists, thus being more aware of their presence. This can only promote a greater mutual respect and understanding on the road. The study demonstrates that Powered Two Wheelers are an extraordinary resource for easing jams, making traffic more fluid and generally improving the quality of life in our cities.

Urban Mobility The need for efficient and sustainable mobility has become more urgent in cities as traffic, congestion, parking space availability are becoming ever greater concerns for citizens. These challenges are accompanied by economic issues with increasing costs for transportation in terms of money as well as time. The increase of PTWs in European cities reflects the need for an alternative mode of transport. PTWs can play an important role in providing viable solutions to citizens who are struggling with congestion, long city trips and hard to find parking places. The European Commission, in its urban mobility action plan, underlined the role of PTWs as an alternative mode of transport contributing to optimising urban mobility. PTWs do not suffer from, nor create, congestion due to their limited dimensions. Thanks to high fuel-efficiency, PTWs help curbing CO2 emissions and are cheaper to run. Lifestyles and mobility patterns in cities have changed: single-purpose journeys are progressively being replaced by multi-purpose and multidestination routes. This is true for business as well as for leisure. Again, PTWs support this kind of mobility. Further, parking places for PTWs demand less space and limited investment from local authorities, are easier to integrate in the structure of European cities, and create less impediment for pedestrians and cyclists. The majority of urban trips are individual trips. Cars are by design ‘multi-purpose vehicles’ allowing one or more people to travel over long distances; however, they are often over-dimensioned in an urban environment, exceeding the needs of many city trips. PTWs are ‘single purpose vehicles’ tailored to the urban and peri-urban environment,

allowing up to two people to travel and following a ‘less is more’ philosophy: they are constructed to cover specific daily travelling ranges, and each component is calibrated accordingly. For many journeys, PTWs can be an alternative to individual car-based private mobility or a complement to public transport, successfully integrating the urban transport toolbox available to citizens, businesses and authorities. According to an assessment performed by RACC* in Barcelona, PTW transport needs to be encouraged if a more sustainable mobility in cities is to be achieved: Advantages of PTWs in cities Parking: • Space occupied by 1 PTW: 2m x 1.3m = 2.6m² • Space occupied by 1 passenger car: 5m x 2.5m = 12.5m² Public street occupation: • Space occupied by 1 PTW on the public road: 10m x 2m = 20² • Space occupied by 1 passenger car on public roads: 20m x 3.5m = 70m² According to RACC, if PTWs were abandoned in favour of passenger cars, there would be the need for 35% more parking places and occupation of city streets would increase by 47%. _________________

* La accidentalidad de las motocicletas en zona urbana - Barcelona 2002-2007, Fundación RACC, 2009

ACEM REPORT The Motorcycle Industry in Europe

Electric Mobility

Need for support

Electric scooters are making their appearance on the market with increasing expectations from the users who are starting to show interest in this type of vehicle combining low costs with ecofriendly mobility. Electric PTWs are light, small and specifically intended for urban use. Despite the great potential represented by EVs and fuelled by extensive media coverage, “range anxiety” and costs still represent a limitation for the take up of electric mobility.

A boost in the segment of electric PTWs requires public policies supporting both offer and demand. Manufacturers need to be supported with investments in research projects, recharging infrastructure, pilot projects testing real life conditions, build up of electric vehicles fleets for companies and local authorities, etc. On the consumer side, the gap between the cost of an internal combustion engine and an electric vehicle will need to be addressed by policy makers.

Technology available today makes these electric PTWs very specialised vehicles primarily intended for urban use. Electric powered two wheelers still account for less than 1% of the market, however they experienced a 60% surge in purchases between 2009 and 2010, and a similar growth in 2011. Experts agree on the intrinsic limits of purely electric cars as this type of vehicle will always by bound to size and mass constraints. PTWs however are best positioned to fully exploit the advantages of electric mobility in cities, which is based on limited ranges, shortage of parking spaces and trips through highly congested areas. PTWs will be the first transport mode to achieve a meaningful shift to electromobility.

Economic benefits of PTW mobility in cities Economist and Sorbonne Professor Pierre Kopp recently published a study* examining the consequences of the increase in Powered Two-Wheelers traffic (measured in vehicle/km) in Paris. The PTW share in Paris traffic increased by 36% between 2000 and 2007, with PTWs now accounting for a share twice as large as that of buses. An original survey has shown that 21 million additional passenger kilometres were made by PTWs in 2007 compared to 2000. 53% of this increase comes from people shifting to PTWs from public transport and 26.5% from private cars. The remaining 20% is attributable to the increased use of PTWs by those already using such vehicles in 2000. Through a cost-benefit analysis, weighing time spent in traffic, impacts on road safety, environment and taxes, the study concluded that the shift towards PTWs over the period 2000-2007 generated a considerable gain for the community, despite the absence of supportive accompanying public policies. ________________________ * La contribution des deux roues motorisés à la mobilité dans une grande métropole : le cas de Paris, Revue Transport, July-August 2009, n° 456.

PTW reduce travel times in cities A study by the French Environmental Agency* ADEME comparing PTW and car trips in the city of Paris concluded that with a PTW ‘pure’ travel time is halved. The survey was performed in “real life” conditions with the aim of comparing the two modes of transport on the same type of use. They were timed on a typical “homework” trip, between a suburb (Linas) and the Paris city center (Musée d’Orsay), at peak time (time of arrival in Paris: 8.30am). While car drivers needed, on average, 88 minutes to cover a 31 Km journey, PTW users made it in 44 minutes, clearly benefiting from their lower exposure to congestion (less idling in traffic). Moreover, the study shows that car drivers needed on average an additional 16 minutes to find a parking place. For these reasons, PTW are also often chosen by businesses for their shorter distance logistics and by public services such as local police. ________________________ * “2 roues motorisés Euro3 : progrès environnementaux et comparaison à l’automobile”, Etudes Ademe, 2007

ACEM is a member of Mobility for Prosperity in Europe. MPE is a transport association bringing together transport organisations and multinational companies supporting European transport policy should be fact-based and rely on users’ needs and on the efficient use of resources in order to ensure future prosperity.

Conclusions – Real Integration The future of city centres, their vitality and the preservation of their role as assets for social and economic development is closely related to ensuring mobility. The recognition of PTWs as a solution to make urban traffic more fluid supports such objectives. PTWs over short distances are a great solution, on their own or as part of a ‘multi-modal’ journey, in everyday travel in cities. ‘Joining up’ travel for longer journeys, meaning that PTWs can be used at the beginning and/or end of journeys where public transport cannot offer a complete door to door solution. This will require PTW facilities at public transport intersections. Furthermore PTWs are the most likely transport mode to shift to full electromobility. The ability to choose between different modes of transport for each specific journey can dramatically improve the environment in which we live and work. The quality of our lives would certainly benefit from it. PTWs are an essential part of the toolbox available to solve traffic congestion problems.

ACEM REPORT The Motorcycle Industry in Europe

Leisure, Tourism and Sport Tourism is a strategic economic activity in the European Union. The EU tourism industry generates 11% of the EU GDP and 12% of the EU work force. The development of many areas in the EU depends on tourism. Mobility and transport are a necessary pre-condition to ensure the prosperity of the sector.

Motorcycling sport is run in different disciplines such as road racing, which includes Grand Prix, and Superbike – motocross, trial, enduro, and track racing. Worldwide these competitions amount to a total of almost 50 championships and prizes, playing an important role as catalyst for social inclusion and contributing to spread the positive values of sports.

Recreational motorcycling offers an unrivalled way to enjoy the outdoors, giving to travelling a different dimension while allowing riders to relish the sensation of freedom. For this reason, PTW manufacturers develop tourism oriented vehicles, providing improved comfort features and higher storage capacity. Motorcycle touring has developed to the point that specialised companies now organise tours combining different cultural and riding experiences across Europe. Similarly, several companies organise different modules aimed at providing advanced riding skills, such as off-road riding.

Sports at the very high level also contributes to manufacturers’ Research and Development activities, which in turn translate into improvements in the product destined to the consumer, in terms of safety, environment, and overall rideability.

Motorcycling also is a popular sport gathering millions of fans worldwide. The most attended events, such as the Moto Grand Prix in Jerez, Spain, can draw up to 250.000 enthusiasts over a weekend attracting investments in racing and tourism infrastructures, and bringing economic benefits to the surrounding area. The success of motorcycling sports generates a prosperous business related to sponsoring opportunities and broadcasting rights. Tourism and Sport in the Lisbon Treaty The Lisbon Treaty, which entered into force on 1st December 2009, includes for the first time tourism among the policy responsibilities of the EU institutions. It also gives the EU a formal competence on sport, which should develop in 2012 in the first EU sports programme, with an emphasis on the social and educational aspects of sports. 24

25 25

ACEM REPORT The Motorcycle Industry in Europe

ROAD SAFETY “A shared Responsibility”

The Industry Strategy Safety is a top priority for the Powered Two-Wheeler industry. ACEM dedicates energy and resources to acquiring and analysing data regarding road safety and Powered Two-Wheelers in order to identify and prioritize areas for improvements. This process follows an integrated approach looking at human, vehicle and infrastructure related factors, seeking to involve policymakers and other relevant stakeholders at European, National and local level. ACEM Members actively support the ‘shared responsibility’ concept and are committed to improving road safety by funding research, financing and participating to road safety projects, acting together towards the common objective of improving the road safety of Powered TwoWheeler users.

Improving the Knowledge In order to better understand the nature and causes of PTW accidents, ACEM conducts studies of motorcycle and moped accidents intended at improving the knowledge of PTW accidentology. ACEM also participates to road safety projects aimed at contributing to curbing road accidents. The results of these projects are then implemented and shared as best practices with policymakers and other stakeholders.

While the number of car accidents has significantly fallen over recent years, PTW accidents have improved only marginally. This is why the European Commission included motorcycle riders in the category of vulnerable road users, together with pedestrians and cyclists. Compared to other modes of transport, PTWs have shown a slower rate of improvement with a reduction of 18% in all PTWs fatalities in a context of a 17 % increase in the parc (the greatest boost of all vehicles’ parc) over the period 2001-2009. Indeed, PTW fatalities have gone down in absolute numbers, but their share has increased in overall transport due to the better results achieved by cars.

Safety figures differ significantly across the EU member states, with statistics on PTWs indicating that, with the same vehicles available on the market, a considerable disparity exists between best and worst performing countries. Reducing this gap by improving national transport policies through integration of PTWs will bring considerable and tangible benefits to European road safety. The identification and dissemination of best practices would facilitate the introduction of successful road safety policies by low performing countries.

Road Safety: the Industry Strategy • Improving the knowledge about motorcycling safety • The Integrated approach - Act on the human factor - Act on the vehicle - Act on the infrastructure • Cooperate with institutions and stakeholders

MAIDS Proper knowledge of how road accidents involving PTWs occur is fundamental to identify the right priorities. With the European Commission’s co-funding, ACEM carried out the most comprehensive in-depth study currently available for PTWs accidents in Europe: MAIDS - Motorcycle Accident In-Depth Study. The investigation was conducted by dedicated research teams during 3 years on 921 accidents from 5 countries. Since the publication of the MAIDS report several analysts have referred to MAIDS and partnerships have been built in order to

European Safer Urban Motorcycling Benefiting from the mobility advantages offered by Powered Two-Wheelers in urban areas and reducing safety related risks The higher presence of PTWs in cities justifies the need to gather further information on their use and specific safety needs. The European Commission co-funded eSUM (European Safer Urban Motorcycling), a project focusing on PTW safety in cities. The project was led by the city of Barcelona involving ACEM PTW manufacturers and three major European capitals (London, Paris, Rome). eSUM (European Safer Urban Motorcycling) was a collaborative initiative between industry and local authorities of Europe’s principal motorcycle cities aimed at identifying, developing and adopting measures designed to deliver safer motorcycling in the city environment. ESUM sought to enable the inclusion of motorized two-wheelers as an affordable answer to the growing mobility needs of European commuters.

continue to make the most of the datas gathered by the MAIDS team. www.maids-study.eu Researchers continue to use MAIDS as the main reference tool for all kind of European projects related to PTWs. Version 2.0 of the MAIDS report contains a new presentation of the data with a split between mopeds (L1 vehicles) and motorcycles (L3). A multivariate analysis on fatal accidents in the MAIDS database has also been developed.

By tackling the problem from all angles - user behaviour, vehicle design and road infrastructure - the project has shown that a reduction in PTW collisions and casualties is feasible. Concrete interventions for delivering safer urban motorcycling in the short, medium and longer term. Here are some examples of the numerous initiatives undertaken by the four European cities: Rider training/driver awareness: Building on the successful Bikesafe rider training programme London encouraged PTW users to follow riding classes rewarding them with free, secure parking at workplaces. The City of Paris, seeing PTW users rise 64% since 1997, released a Charter entitled “Living together also means sharing the street” which focuses on the safety benefits of the appropriate motorcycle clothing. Improved safety features: These are gaining in importance as manufacturers develop and apply new technologies, such as the protective structure of the BMW C1-E concept or the three-wheel architecture of the Piaggio MP3 hybrid scooter. Infrastructure: In London trials involving the opening of bus lanes to PTW lead to an overall decrease of 50.7% for PTW collisions. Based on 27

ACEM REPORT The Motorcycle Industry in Europe

these positive results Transport for London decided to open all bus lanes to PTWs. A major public awareness campaign has been launched as a complementary measure. Speed limitations: In Barcelona 30 km/h zones lead in 2009 to an average monthly PTW casualty reduction of 40.5%.

requiring considerable resources and adequate time before becoming a production reality.

An on-line tool kit – available in several languages and ready for use The tool kit made up of Action Pack and Good Practice Guide contain all measures identified by the eSUM Project. The Action Pack helps city authorities and technicians analysing the situation, identifying the most appropriate action and finally evaluating the effectiveness of the adopted measures. The Good Practice Guide is aimed at engineers, road designers and other road safety practitioners. It assesses over 200 projects from all over the world, for their potential to reduce PTW casualties.

Advanced Braking Systems

The eSUM project provides immediately applicable tools to improve the safety of traffic in European cities and towns.

Find out more The Action Pack - a simple methodology for designing and implementing a safety strategy designed for PTWs: www.esum.eu/ actionpack.html And the Good Practice Guide, aimed at engineers, designers and those involved in the issue of road safety: www.esum.eu/gpg.html The MAIDS Urban Accident report: www.esum.eu/actionpack.html. A series of videos on how the cities handled the project: www.esum.eu

The Vehicle Quality, design and product reliability lie at the basis of every choice leading consumers to buy PTWs manufactured by ACEM Members. Innovation is a strategic driver of success but also a long term process 28

To meet type-approval requirements, and high safety standards, ACEM Manufacturers apply the latest state-of-the-art technologies.

With regard to active safety (accident avoidance) for motorcycles, braking is unmistakably the most important vehicle-related factor. Advanced braking systems include a range of systems. There are three primary types of motorcycle advanced braking systems, namely ABS, CBS and a combination of the two. While most people have a good idea of what an anti-lock braking system does*, a very effective motorcycle braking system such as the CBS needs to be highlighted.

Advanced Braking Systems The Motorcycle industry has developed over the years several braking technologies enhancing the effectiveness of these devices and adjusting to specific manoeuvers and needs. Advanced braking systems encompass different systems, such as anti-lock brake systems (ABS) acting on one or both wheels, combined brake systems (CBS), rear wheel lift-off protection (RLP), automatic brake force distribution, amplified braking systems, brake by wire and new vehicle architectures. These systems can be present individually or in combination on a PTW. The varied range of braking systems available today is able to match the price range of the vehicles on offer. * ABS helps to to prevent the wheels from locking during braking by automatically releasing brake pressure prior to wheel lock-up. The system senses when a wheel first begins to lockup and automatically releases pressure to allow the wheel to begin to roll again. ABS can help prevent skidding and loss of directional control, especially on slippery surfaces.

CBS A combined braking system (CBS) applies braking pressure to both the front and rear brakes when either the front brake lever or rear brake pedal is activated. CBS can help slow the vehicle if the rider only applies one of the two brake inputs. There are three main types of CBS:

That is why the braking characteristics of motorcycles’ front and rear wheels largely differ from each other: the front wheel brake causes a shift in the centre of gravity to the front wheel: a high deceleration can be obtained but the nosedive is large; the rear wheel brake, on the other hand, cannot yield decelerationslarger than the front wheel, but the resulting nosedive is small. Furthermore, road surface conditions vary greatly by the type of pavement and the weather conditions, affecting the rider’s ability to properly operate the brakes of the front wheel and the rear wheel. CBS enables at any time and for anybody a proper distribution of the braking forces between the front and rear wheels in accordance with varying road surface conditions and as such assists the rider continuously during his every day braking maneuvers.

• Rear CBS – Applies the rear and a portion of the front brakes when the rear brake lever (scooter) or pedal (motorcycle) is applied. The front brake lever applies only the front brake. This type of system is generally found on small displacement scooters/motorcycles, but has been applied to larger models in some instances. • Front CBS – Applies the front and a portion of the rear when the front brake lever is applied. The rear brake pedal applies only the rear brake. A PCV (Proportional Control Valve) may be utilized to minimize or prevent rear wheel lock under heavy front lever application. This type of system is less common and has been applied only to certain medium to large motorcycles. • Dual CBS – This type of system employs both types 1 and 2 and is generally found on medium to large motorcycles.

Compared to automobiles, the centre of gravity of motorcycles is higher and their wheelbase is shorter, making the shift in the centre of gravity for motorcycles during braking greater than that of automobiles.

ACEM REPORT The Motorcycle Industry in Europe

ACEM’s Brake Commitment – A pledge for road safety As a commitment to the European Road Safety Charter, in 2004 ACEM Manufacturers proposed to progressively increase the number of PTWs fitted with advanced braking systems. As a first milestone advanced braking systems would be offered on the majority of new street models on the European market, at least as an option, by 2010. As Manufacturers reached the promised target, ACEM renewed its commitment setting a new, more ambitious goal of 75% of street PTWs equipped with Advanced Braking Systems to be achieved by 2015.

Lighting and conspicuity ‘Being seen’ and being perceived accurately by other road users are extremely important factors that contribute to PTW safety. The relatively narrow frontal silhouette of PTWs, compared to that of other vehicles, often leads to a wrong evaluation by other vehicle users and consequently to accidents. A variety of countermeasures, both human and vehicle related, should be considered to ensure PTWs are correctly perceived in traffic. Awareness and training (of both PTW and other vehicle operators) are fundamentally important and must be addressed. ACEM manufacturers are engaged in a programme aiming at increasing the conspicuity of PTWs: 1- voluntary introduction of AHO (automatic headlamp on) since 2003 2- a research programme to identify lighting treatments that improve PTW conspicuity to other vehicles in the future European traffic environment 3- the exploration of and research into intelligent transport systems (ITS) that can help in the “communication” between PTWs and other road users. 30

On-going research may lead to on-vehicle improvements in the future. The longer-term ITS efforts will explore how to cooperate with the car and component industry, among others in the context of the iMobility Forum.

ITS New technologies can help better integrating PTWs in transport while increasing the driving experience and reducing the risk of accidents. However the application of such systems on PTWs is in most cases far from a simple carry-over from car technology. Fitting automotive safety solutions onto a PTW is a major challenge. Not all automotive Advanced Driver Assistance Systems (ADAS) can be fitted on a PTW because of size constraints, specific riding dynamics and vehicle characteristics. Some systems simply do not fit to PTWs. Collision avoidance, for example, which automatically intervenes on the speed, acceleration, brakes and engine revs, would have a detrimental impact on riding stability, with the opposite effect of exposing the rider to greater risk. On the other hand, the likes of adaptive cruise control, blind spot monitoring, collision warning, blackspot warning, remote service and maintenance and accident warning are all highly adaptable and could make for a more informed and safer rider with less stress and distraction. ACEM members are actively working on ITS systems for PTWs - Driver Assistance Systems (DAS) for PTWs are already on the market and steadily extended, such as: ABS, CBS, Traction Control, Tyre Pressure Monitoring System, Electronic Adjustable Suspension, Electronic Cruise Control, Gear Shift Indicator/Assistant, Fuel Economy Assistant, Proximity Activation, Invehicle Navigation System and Riding Mode. At the same time the process of deployment of Advanced Driver Assistance Systems (ADAS) is extremely complex - the leaning behaviour of PTWs, their accurate positioning on the lane may represent some of the technical challenges to today’s sensor and systems that were developed for cars; some of these systems intervene also in the vehicles’ longitudinal and lateral control (throttle, braking and steering). Effectiveness, technical feasibility and market acceptance for ADAS for PTWs requires thorough development and testing.

Tampering PTW engine driveline tampering – to increase performance above legal limits – is a major concern in several European countries mainly involving mopeds. Modified vehicles not only lose their compliance with environmental norms, they also pose a serious threat to safety.

ACEM believes that training and education are fundamental for improved PTW safety in the EU. A wide variety of training concepts and contents is available nowadays across Europe, freely accessible on a voluntary basis or mandatory prior to passing the licence test. Yet, there are some countries where it is possible to ride a moped or a powerful motorcycle without any kind of training.

While it is not an easy task to detect whether a PTW has been tampered with, figures show that a significant proportion of moped severe accidents occur at travel speeds greater than 50 km/h, indicating an illegal modification of the maximum speed limit of 45 km/h.

Following the principles of “lifelong learning” ACEM encourages training instead of testing

ACEM proposed new antitampering measures preventing moped users from illegally raising the maximum speed of the vehicle in order to complement the existing regulatory provisions. These new measures would cover electrical/electronic devices participating in the vehicle’s maximum speed limitation, the interchangeability of components, the Continuously Variable Transmission’s components, the exhaust silencing system and marking.

• ACEM proposes access ages to follow straight from traffic safety school education, using the opportunity provided by lowpowered PTW categories and encouraging progressive access (mopeds at 14; light motorcycles of 125cc at 16; motorcycles of ≤35KW at 18 and unrestricted access from 20 years of age). • ACEM proposes to implement mandatory pre-license training, for all novice riders in Europe.

Authorities enforcing controls ave an important role to play in minimizing tampering.

• The initial Rider Training Project offers a valuable framework for “progressive access” (www.initialridertraining.eu)

Licensing

• ACEM supports the equivalence for car driving licence holders towards mopeds, light motorcycles of 125cc and tricycles) and proposes training for riders making use of equivalence options between various license categories.

The 3rd Driving Licence Directive was published in the EU official journal on the 30 December 2006. The text was transposed by most Member States in 2011 and will apply as from January 2013. The directive contains new provisions governing the access to the different categories of Powered Two-Wheelers (PTWs), introducing new PTW vehicle categories and providing Member States a range of options, among which testing and training.

• ACEM supports the direct access option to unrestricted motorcycle licence, as the current PTW test is among the most complete and demanding.

ACEM REPORT The Motorcycle Industry in Europe

Early application of 3DLD in Spain: a case of market distortion In spite of a clear application date, on December 8, 2009 the Spanish Ministry of Transport adopted the A2 motorcycle licence which limits the use to vehicles of less than 35 kW (47 hp). This new licence was introduced in haste, with Spain as well as Slovenia anticipating the application date of the EU Directive which clearly prescribes the simultaneous application in all Member States on January 19, 2013. Following a sudden decline requests for new motorcycle licences, Spanish manufacturers asked Government to bring back the old licence scheme and to restore the access age of mopeds to 14 years with the aim of rescuing the ailing PTW market. ANESDOR denounced the Spanish initiative to illegally anticipate the application date of the 3rd Driving Licence Directive. The ensuing legal incompatibility between Spanish motorcycle permits and the rest of the EU prevents Spanish riders from legally using their vehicle outside Spain and if they do so, they risk penalties and are not covered by insurance. This situation brought about by the Spanish Administration breaches Community law and violates the right to free movement of persons, a fundamental principle enshrined in the European Union treaty. Furthermore on September 2010, the Ministry of Interior decided to increase to 15 years the minimum age for mopeds. Next to Greece, Spain was also the only European country to adopt such a measure.

The result has been a contraction of the moped segment by -73% since 2007, when 126,000 units were registered, compared to slightly more e than 34,000 in 2010. Such a drop op equals to the extintion of the moped segment and of most of the Spanish PTW industry. The ill-advised early application of the 3DLD has resulted so far in a PTW market decline of 57%, from more than 395,000 units registered egistered in 2007 to 169,000 of last year. Itt can be estimated that the Spanish Government has caused serious damage to the PTW industry leading to the destruction of 25% of jobs in a global workforce of 50,000 in 2007. In this dire context, ANESDOR has requested to comply with the application date foreseen in the EU directive and to postpone postpone the implementation tation of the new European motorcycle licence scheme to January 2013. Until then, ANESDOR demands to re-establish legality through the the restoration estoration of the previous scheme, recognising those A2 licences that were obtained in the meantime and can not leave the Spanish borders. ANESDOR also calls for the restoration of the access age to mopeds to 14 years.

Guidelines on Motorcycle equipment

The Infrastructure

With the aim of encouraging a wider take-up of protective gear ACEM has released a booklet in seven languages with indications on which equipment to choose. This brochure has been developed within the eSUM Project ensuing from the cooperation between ACEM and four European motorcycling capitals (London, Paris, Barcelona and Rome).

The poor conditions of many European roads and the fact that PTW specific needs are still often neglected in road engineering are among the causes for accidents. Road Infrastructure Safety Management is part of the ‘integrated approach’ to road safety (linking the users the vehicle and the infrastructure aspects) and a step in the right direction of reducing the number of deaths on European roads.

The goal is the identification, practical demonstration and adoption of measures for the safer use of powered two-wheelers in the inner-city traffic. Most riders use helmets. However moped riders and commuters tend to neglect the benefits of protective equipment in terms of safety and comfort. In Mediterranean countries, for example, due to their warm climates, users are still widely unaware that good apparel can combine comfort and safety. The goal of this campaign is to provide some simple guidelines supported by scientific evidence to help increasing the number of motorcyclists equipped with appropriate protective clothing - http:// www.acem.eu/cms/ppe.php.

ACEM engages with stakeholders responsible for improving the road environment and urges them to work with local agencies to identify and develop solutions which take PTWs into account. The adoption of PTW friendly guidelines while engineering and/or maintaining roads would effectively reduce the risk of accidents and injuries. To this extent ACEM has published an “Infrastructure Guidelines Handbook”* developed together with road engineers. This technical manual focuses on infrastructure and provides guidelines for a safer environment for PTWs. This publication is aimed at traffic engineers, urban planners, contractors and policy makers however it included also benefits in terms of safety for PTW users. However the role of the rider can be crucial to prevent these accidents. This is why ACEM devised a campaign providing more information on the road environment with the aim of helping riders to make better choices and contribute to improving their own safety.

The he Handbook can be downloaded at http://www.acem.eu/cms/publications.php

ACEM REPORT The Motorcycle Industry in Europe

ENVIRONMENT â&#x20AC;&#x153;Towards parity with carsâ&#x20AC;&#x153;. PTWs require ten times less energy to manufacture and recycle than passenger cars. In developing, manufacturing and marketing their vehicles, ACEM Manufacturers assure the highest standards and full compliance with stringent environmental norms. In October 2010, the European Commission proposed a draft regulation with a roadmap towards 2020 for further environmental progress to further reduce the PTW contribution to the total road transport emissions. This proposal is being considered by the European Parliament and the Council, and the Commission is in parallel developing the delegated acts comprising the technical details.

Limit Values Motorcycle Class II (>150cc) 35.0 35.0

CO g/km

30.0

HC g/km

25.0

Nox g/km

20.0 13.0

15.0 10.0

7.0 3.0

5.0

5.5 2.0 0.3 0.15

1.0 0.3

0.3

0.0 1998-ECE 40

Regulated Pollutants

1999-Euro 1

2003-Euro 2

2006-Euro 3

Moped 2 stroke / 4 stroke (50cc)

Achieved progress Over the last decade PTWs achieved remarkable progress in reducing their environmental impact, with a 94 % reduction of CO and HC for motorcycles and 88 % reduction of CO for mopeds.

8.0 8.0 60

CO g/km

6.0

HC + NOx g/km

5.0 3.0

4.0

1.0

2.0

1.2

0.0 1998-ECE 47

1999 - Euro1

2003 - Euro 2

ACEM REPORT The Motorcycle Industry in Europe

ACEM proactive proposals partially integrated in EC proposal Recognising the need to make progress, ACEM members proactively proposed, at the occasion of their 5th Annual Conference in Brussels on 1st December 2008, to set two new emissions reduction stages: Euro 3 and Euro 4 for mopeds and Euro 4 and Euro 5 for motorcycles. The EC has integrated industryâ&#x20AC;&#x2122;s proposals, foreseeing these new Euro standards should apply in 2014-2015 and 2017-2018. The EC also proposes a further emission reduction step in 2020-21, using limit values identical to those of passenger cars Euro 5. The content of this third step will be confirmed based on the findings of a comprehensive environmental effect study to be performed by 2016. The proposal is accompanied by a more representative emission test cycle for mopeds and by the worldwide motorcycle test cycle (WMTC). These cycles will be able to accurately reproduce the typical dynamic and usage of both PTW categories.

Motorcycle emissions : reducing carbon monoxide (CO), hydrocarbons (HC) and oxides of nitrogen (NOx) The proposed Euro 4 stage will achieve a 25% reduction over Euro 3 in tailpipe emissions for motorcycles, and the proposed Euro 5 stage will realize a further 25% reduction. These reductions are in line with the ones met by passenger cars, but motorcycles will use a tougher and more dynamic real-life test cycle. Moving from current Euro 3 to Euro 5 will determine a 50% reduction of motorcycle pollutant emissions. The proposed steps must provide sufficient lead time to comply with industrial design and production constraints, phasing in targets and ensuring flexible solutions for industry and thus containing cost increases for the consumer ACEM maintains that the 2020-21 envisaged step should be fully evaluated in terms of its need and assess the technical feasibility of its content; very importantly, cost-efficiency should be at the core of the 2020-21 step.

WMTC also known as Global Technical Regulation 2 (GTR 2) was developed in Geneva under the auspices of the United Nations (UN-ECE). It reflects the dynamics of the different motorcycle categories. 140.0

EC proposed emission reduction process 3

Phase 3

130.0 120.0

2 1

110.0

Phase 2

90.0

CO (g/km)

100.0 Phase 1

80.0 70.0 60.0

(2017-18*) Euro 5

1999 Euro 1

(2014-15*) Euro 5

(2020-21*) Euro 6

0.25

0.5

2003 Euro 2

50.0

* earliest possible proposed implenmetation dates (subject to legislative process)

2006 Euro 3

40.0 2006 Euro 3

30.0 20.0 10.0 0.0 1

101 201

301

401 501

601 701

801 901 1001 1101 1201 1301 1401 1501 1601 1701 Time

2 HC + NOx (g/km)

Evaporative Emissions The EC proposal includes requirements for controlling vapours lost from the fuel storage system. ACEM supports the principle, but wishes to underline that solutions should remain simple in order to contain the investment in technology and testing facilities.

Durability ACEM supports the introduction of durability requirements, aimed at ensuring that emission performance is complied with over time during normal use of the vehicle. The durability requirements should reflect the actual average mileage performed by different L category vehicles, which is much lower than passenger cars. The specificity of some of the L categories, such as smaller displacement vehicles, as well as Trial and Enduro motorcycles, requires adaptation of the durability mileage. Finally, the durability test procedure should follow practices existing in other parts of the world, in order to achieve the simplification goals of the EC proposal by avoiding unnecessary duplications and related cost impacts.

PTW NOx emissions â&#x20AC;&#x153;PTWs are negligible contributors to total NOx emissions, where heavy duty vehicles dominate. Therefore, although NOx contribution from mopeds and motorcycles is increasing due to the gradual shift from rich to stoichiometric combustion, they are not considered to exceed ~2% of total road transport NOx emissions by 2020.â&#x20AC;? Study on possible new measures concerning motorcycle emissions - Laboratory of Applied Thermodynamics, Mechanical Engineering Department, Aristotle University, Thessaloniki - November 2008

ACEM REPORT The Motorcycle Industry in Europe

CO2

On-Board Diagnostics CO2 emissions of different transport modes

Gigatonnes CO2 - Equivalent GHG Emissions/Year Total

Two- + Three-Wheelers Buses

OBDs are monitoring systems able to identify and inform the user about vehicle malfunctions and store this information in a computer memory. OBD systems with different levels of complexity are being proposed by the EC in the type-approval regulation. ACEM supports the progressive introduction of OBD on L category vehicles, taking into account the technical constraints and cost parameters of smaller displacement vehicles, such as mopeds.

Freight + Passenger Rail Water

Air Freight Trucks

Light Duty Vehicles

0 2000

2010

2020

2030

2040

2050

Source: WBCSD Sustainable Mobility Project calculations

The CO2 contribution of motorcycles, mopeds, tricycles and quadricycles to overall transport is marginal. According to projections, it will further fall and remain marginal in the future, compared to other transport modes. Considering the fact that PTWs emit lower amounts of CO2 compared to passenger cars, the increase in trips done by PTWs will actually have a positive effect in the overall reduction of CO2 emissions from road transport. ACEM members, committed to contributing to the reduction of CO2 in transport, support the introduction of CO2 measurement for PTWs as part of the upcoming Euro stage. Labeling would then become possible to ensure objective consumer information and orienting the modal choice of citizens in transport. ACEM regards these steps to be essential in ending speculation about the CO2 and fuel efficiency performance of PTWs.

PTWs, a much more energy efficient means of transport “PTWs appear as much more energy efficient means of transportation than passenger cars and their activity should be promoted as a measure to further control GHG emissions from road transport. The energy efficiency labeling regulation should be formulated in a way that will not affect the sensitive PTW market.” Study on possible new measures concerning motorcycle emissions - Laboratory of Applied Thermodynamics, Mechanical Engineering Department, Aristotle University, Thessaloniki - November 2008

PTW CO2 Facts and Figures - PTW contribution to European road transport CO2 is predicted to remain stable around 1.3%. - Average PTW CO2 level is already well below the car 2012 average mandatory target.

Noise

Periodic Inspection

PTWs allowed on European public roads undergo a set of tests including the control of noise levels. Excessive noise is caused by the use of illegal (non type-approved) exhaust systems and aggressive riding behaviour. The same type-approval testing procedure does not apply to every exhaust system. Type-approved non original exhaust systems may violate legal noise levels, due to less stringent type-approval testing conditions. Simplification and harmonisation of the legal framework setting equally stringent measures to every exhaust system, should contribute to reduce the problem of illegal noise levels.

Increasing type-approval requirements determine motorcycle manufacturers having to invest into more complex and refined technologies to ensure the vehiclesâ&#x20AC;&#x2122; compliance to higher standards.

ACEM actively contributed to the revised UNECE regulation on motorcycle noise emissions adopted in Geneva in 2011. It will bring significant improvements: better representation of riding behaviour and equal treatment of OEM and after sales exhaust systems manufacturers.

Motorcycle noise aggressive riding/driving

Maintenance and servicing also make an important contribution to road safety ensuring the good working conditions of wheels, tires, brakes and lighting. Currently, a majority of Member States have introduced PTWs periodic roadworthiness testing for environmental and safety reasons. However, PTWs are the only vehicle not falling under the scope of Directive 2009/40/EC. ACEM members support the inclusion of PTWs in the scope of Directive 2009/40/EC, with appropriate periodicity requirements. Environmental checks should focus on tailpipe emissions and exhaust system noise. nois

Noise Level (dB/A)

normal riding/driving

Correct maintenance and servicing by the user is necessary to guarantee the vehicleâ&#x20AC;&#x2122;s proper environmental performance over its lifetime.

Vehicle Driving Speed km/h Motorcycles fitted with a type-approved road legal exhaust system emit similar noise levels to passenfer cars.

ACEM REPORT The Motorcycle Industry in Europe

ECONOMY AND COMPETITION “Growth through a level playing field“.

The PTW Sector at a Glance

The he powered two-wheeler industry plays an important role in the EU in terms of the economy and jobs. Europe has been a leading production base for Powered Two-Wheelers since the invention of the motorcycle in the late 19th century. More than a century later, the motorcycle industry remains at the forefront when it comes to investment in innovation, quality and design. Europe is a key market for many nonEuropean brands, to the extent that specialist knowledge and closeness to consumers has lead to the establishment of production facilities in the EU. Over the last two decades, there has been growing competition from emerging economies manufacturers on the EU market.

As part of the transport sector of the economy, the PTW sector is too often assimilated to the automobile one. This oversimplification hides very peculiar characteristics, which regulate the economic dynamics of a branch, whose main aspects can be summarized by flexibility and diversity.

For the industry to thrive, it is necessary to ensure a level playing field and

In the EU27, almost 40,000 enterprises operate in the PTW sector, in which more than 960* are dedicated to a certain form of production of PTWs, from artisanal manufacture of unique personalized models up to industrial series production, the core activity of the branch. Around 80% of these enterprises are located in 6 Member States: Austria, France, Germany, Italy, Spain and the United Kingdom.

provide equal access to opportunities on the EU and extra-EU markets. Names such as Peugeot (France) and Triumph (UK) have been in motorcycle manufacturing since the earliest days. Others such as BMW (Germany) formed soon after. Indeed, Europe gave birth to new motorcycle brands that quickly grew providing utility and leisure mobility as shown by Piaggio (Italy), Derbi (Spain), Ducati (Italy) and KTM (Austria). Manufacturers such as Honda, Suzuki and Yamaha (Japan) established European production facilities. Brands like Harley-Davidson (USA), Kawasaki (Japan), Bombardier Recreational Products (Canada) and Victory Motorcycles (USA) equally set up their distribution businesses in Europe.

The organization of the distribution, maintenance and repair of motorcycles satisfies the proximity needs of the consumers through more than 38,000 points of sales and services spread over the territory of the Union. PTW distribution and services represents 2/3 of the employment of the sector, which accounts for more than 164,000 jobs as a whole. The above mentioned six countries also account for the largest shares in the sector’s employment. In 2008, the turnover of the entire PTW sector was estimated at 34 billion Euro, for which the manufacturing of motorcycles accounted for nearly 7 billion Euro, with a breakdown across the Member States similar to that of number of enterprises.

* This his value refers to the sector as defined in the classification NACE Rev.2 (released in 2008), and is much greater than the total that had been estimated by Eurostat for 2006, which was calculated on the basis of the previous version of the classification (NACE Rev. 1.1.) and corresponded to 870 enterprises. This difference is due to the fact that according to the “old” classification, the manufacturing of motorcycles engines was not included in the manufacturing of motorcycles (but was part of manufacturing of motor vehicles).

ACEM REPORT The Motorcycle Industry in Europe

Small and Medium Enterprises represent a fundamental characteristic of the sector as a whole with almost 98% of the total number of businesses and 3/4 of the PTW manufacturers. This reality often goes unnoticed due to the reputation of international PTW manufacturing groups, directly in ACEM membership.

SMEs, a reality of the PTW sector In the EU, enterprises operating in the manufacturing of motorcycles have an average of 29 persons employed each, while PTW distribution and services employ an average of 3 people.

Characterised by a high seasonal effect influenced by climate conditions especially in Northern and Central Europe, manufacturers are used to adapt their production capacity to the market demand, which varies in huge proportions. The seasonal effect On a monthly basis, the variation of the registrations is affected by a factor 3. Another characteristic is given by the management of a wide variety of different models, ranging from small 50cc scooters up to large displacement touring motorcycles. This impacts all the industrial and commercial chain, from research and development, product planning, logistic, production, up to marketing, distribution, and services and requires constant flexibility and reactivity from all the actors in the sector. The diversity of the offer 14 main segments 7 engine capacity classes

PTW Enterprises - Split by Size

SME Downstream 98%

Small and Medium Enterprises represent a fundamental characteristic of the sector as a whole with almost 98% of the total number of businesses and 3/4 of PTW manufacturers.

Non SME Manufacturing 0% SME Manufacturing 2%

Internal Market 2008-2011: four consecutive years of recession due to the economic crisis The crisis that has been affecting the powered two-wheelers market in the EU since 2008 is not loosening its grasp. 2011 marks the lowest perper formance of the decade. Registrations of Powered Two Wheelers fell by another 9,5%, amounting to almost 170,000 less units, compared to 1.7 million units. Since the last quarter of 2008, registrations have begun to fall dramatically in important markets such as Spain, France and Greece. This decline has lead to a revolution in the European market of motorcycles and scooters. Consequences on the Italian market, which seemed immune to the crisis, also thanks to measures adopted by the Government in 2008 and 2009, didn’t fail to occur. When the successful scrapping scheme ended, Europe’s biggest market soon lost its primacy to France. Marking the greatest losses in 2011 were Italy, with -17%, Spain (-16%) and The Netherlands (-13%). Greece, because of its known economic situasitua tion, set the record low in sales of powered two-wheelers: -25%. Countries that until now seemed able to contain the damage, such as Germany and France, have reduced their positive trend, -1.6% and -3.3% respectively.

The European PTW market : High competition At the beginning of 2012, the CIAcem* database included the following figures : • Number of commercial brands in competition: 1365 • Number of models offered to the consumers: 16,388 The increasing competition in the PTW sector One of the characteristics of the PTW market is its remarkable dynamism, which allows an increasing number of new players, providing consumers with wider choices, value and benefits. Top 5 European markets in 2011

France

Italy

Germany

Turkey

Spain

PTWs

Italy

France

Turkey

Germany

Spain

Poland

Germany

Motorcycles

The crisis has as a matter of fact wiped out 37% of the volumes achieved in 2008. The year 2010 ended with a blazing -14%, while in 2009 the decline amounted to -15% year on year. France

The Netherlands

Italy Mopeds

* CIAcem: the European registration database project developed by ACEM manufacturers

ACEM REPORT The Motorcycle Industry in Europe

Main Market Trends

Total Europe

Over the last decade the total volume of registrations and deliveries culmiculmi nated in 2007 at 2.7 million units. In 2011, four years into a dire economic crisis, the PTW sector achieved its lowest result with 1.7 million units corcor responding to 1 million difference compared to 2007. The period 1994 – 2008 had been marked by a positive trend. Unfortunately between 2007 and 2011 the global economic crisis and the subsequent credit crunch lead to a 37% decline of the European PTW market.

3000000 Total Europe

2500000 2000000 1500000 1000000

Total PTWs

500000

3000000 2726320 2500000

2597551

2001

2198199 2000000

2002

2003

2004

2005

2006

2007

2008

2009

2010

PTW, Moped and Motorcycle registrations/deliveries 2001 – 2011 (Source CIAcem)

1889568 1720948

1500000 1000000

Main PTW Market Trends 700000

500000

600000

0 2007

2008

2009

2010

2011 (prov.)

The graph highlights the yearly decline of PTW registrations in the EU since 2007.

500000 400000 300000

The crisis has deeply affected the European PTW market not only reducing its volumes but also changing some of the core aspects which traditionally reflected its main features. Italy, historically know as Europe’s first PTW market for PTW, lost its supremacy to France. While Germany rose to third place, Spain has to hand over its position at the top to a new entry: Turkey, the only country where volumes are increasing.

200000 100000 0 2001

2002 Italy

2003 France

2004

2005 Spain

2006

2007 Germany

2008 Turkey

2009

2010

2011 (prov.)

United Kingdom

Shifts have also occurred in the share of engine capacity classes. All councoun tries lost volumes both in the moped as well as in the motocycle segseg ments. However, the decline was more severe for motorcycles which lost 12% in 2011 compared to 2010, a double digit fall for the third consecuconsecu tive year. Mopeds show some resilience declining by only 1% in 2011. This good performance however hides a -32% in lost volumes since 2007, the year before the crisis began to wreak havoc. The good performance of this segment, which now accounts for 36% of the European market in terms of units, is due to the combination of a growing demand for individual urban mobility and a harshening of licensing provisions decided by some Member States (i.e. Spain). It is however to be determined whether the cricri sis itself is pushing consumers toward a more affordable transport mode, such as the moped. The increase of individual mobility needs influences positively also the scooter segment, which now dominates the PTW market and reaches a 58% market share in 2011.

Since 2008, European manufacturers represented by ACEM have been callcall ing on European institutions for increased attention for this situation, as it dramatically impacted the labor market. Perhaps the most dramatic case is represented by Spain, where the motorcycle industry has lost a quarter of its original 50,000 jobs since 2007. Pushed by a worsened economic context, manufacturers have undergone deep restructuring and have invested in innovation. The industry has done its part in creating the basis for recovery. However, it is the role of policy makers to reassure consumers and households by ensuring that jobs and manufacturing remain in Europe. New legislation needs to take into acac count its impact on an already depressed situation.

Main Styles - All PTWs

PTW engine capacity classes

MC style 2011 42%

2-50cc 36%

501-750cc 8%

Other 40% 51-125cc 25%

251-500cc 9% 126-250cc 8%

7511000cc 7%

Scooter style 2011 58%

10019999cc 7%

Scooters dominate the smaller capacity classes confirming the shift of concon sumers toward a more utility oriented transport paradigm. The motorcycle style however is still accounting for 53% of the market for the capacity classes above 50cc.

ACEM REPORT The Motorcycle Industry in Europe

The manufacturing of motorcycles The following analysis of the structure and recent trends of the PTW market focuses on the core activity of the PTW sector, the manufacturing of L-category vehicles. All presented data have been derived from Eurostatâ&#x20AC;&#x2122;s databases; at the time of writing the most recent data available referred to 2008*.

Structure of the sector

The total number of motorcycle manufacturers operating in the EU-27 in 2008 has been estimated by Eurostat at 960. The majority of enterprises is located in some of the largest countries: Italy alone accounted for about 44% of the total, whereas the United Kingdom and Spain for about 11% each. Germany and France followed each at 8%. Considering that the magnitude of the economic crisis became evident only in 2009, the number of enterprises in each country did not experience significant changes between 2006 and 2008.

Employment in Manufacturing Sector - Split by Country

Enterprises in the motorcycles manufacturing sector by Member State, 2008

Spain 11%

France 9%

Germany 5%

11% United Kingdom 11%

Germany France 44%

Italy 57%

Portugal 2% Slovenia 2%

The Netherlands 1%

Sweden 1% United Kingdom 4%

Sweden 8%

Netherlands Poland Portugal

2% 3%

Other Italy

The percentages have been calculated on the basis of the total for the EU Member States which provided data for 2008. Data were not provided by the Czech Republic, Greece, Ireland, Malta, Romania, Slovakia. * In n 2008 a new classification of economic activities was adopted in the EU : such classification is the NACE Rev.2, and replaces the NACE Rev.1.1 which dates back to 2002. ** This his percentage is calculated on the total for the countries for which data are available, but it enables to observe the level of concentration.

Others 12%

Spain

Poland 2%

Austria 6%

PTW Manufacturing Enterprises MS Share of Employees 5 countries ies IT+ES+FR+DE+AT = 88% of employment

Employment in the manufacturing of motorcycles is concentrated in a few countries. In 2008 Italy ranked first, far above the other countries, with more than 15 000 persons employed. Spain and France totalled 2 500-2 800 people each, whereas Austria, Germany and the United Kingdom 1 100-1 500. These six countries totalled about 90% of the sectorâ&#x20AC;&#x2122;s employment**. The manufacture of motorcycles can not be compare to the manufacture of motor vehicles: in 2008, at EU level, they had an average of 29 persons employed each, compared to about 500 for the manufacture of motor vehicles.

Split by Size of Companies

Productivity and performance indicators The total turnover generated during 2008 by manufacturers of PTW amounted to 7.0 billion Euro.

Big companies 24%

In 2008 Italy alone accounted for more than half of the turnover of motorcycle manufacturing generated in the EU, at around 3.9 billion Euro. Spain recorded slightly more than 1.0 billion euro, which corresponded to a share of 15%; Austria and France accounted respectively for 8.5% (590 million euro) and 8.0% (560 million euro). The United Kingdom and Germany followed with 360 million and 180 million euro respectively.

SMEs 76%

PTW Manufacturing Enterprises Split by Size

Turnover of PTW Manufacturing Sector - Split by Country Average size of enterprises by Member State Manufacturing Sector

Germany 3% Other 4%

Slovenia 1%

United Kingdom 5% 500

France 8%

400 300

Austria 8%

200 100

Italy 56%

Hu ng ar

lan th er

d an

ng do m Ki

Po l

Spain 15%

ite d

an y Ge rm

EU -

l ga

ain

nc e Fr a

tu Po r

ly Ita

ia Au str

Slo ve ni a

â&#x2C6;&#x2019; EU average: verage: 29 persons employed â&#x2C6;&#x2019; Austria ustria and Slovenia rank among the countries with the largest average enterprise size due to the presence of few large players in those countries.

PTW Manufacturing Enterprises MS Share of Turnover 5 countries (Italy, Spain, Austria, France, United Kingdom) = 92% of turnover

ACEM REPORT The Motorcycle Industry in Europe

Employment While between 1999 and 2008 employment in the European manufacturing industry declined by nearly 11%, the PTW sector recorded a drop (-9.5%) in line with the average. Except for a downward trend in 2001-2002, until 2007 turnover of the manufacturing of motorcycles increased every year to reach a cumulated growth of 29% between 1999 and 2007. This growth was the same as the one recorded by manufacturing of motor vehicles and by manufacturing as a whole. The drop in enterprisesâ&#x20AC;&#x2122; turnover caused by the economic crisis in 2008 was particularly remarkable in the PTW sector, which recorded a drop of about 9% in one single year (compared to -6% in the manufacturing of motor vehicles and to -1.3% in manufacturing as a whole).

Evolution of selected variables during the 1999-2008 period (1999= 100) (*) Number of persons employed 110,0

100,0

90,0 Manufacture of motorcycles Manufacture of motor vehicle, trailers and semi-trailers Total manufacturing

80,0

Until 2007, following the â&#x20AC;&#x153;combinationâ&#x20AC;? of a sustained growth in turnover with a decline (or stability) in employment, the average value of turnover per person employed generally increased. In 2008, the abrupt decline in total turnover entailed a drop in the value of the turnover generated by each worker. Despite this decline, over the entire 1999-2008 period the change in turnover per person employed remained positive: +30% in manufacture of motorcycles and motor vehicles, +43% in total manufacturing. The evolution of value added per person employed (labour productivity) more or less followed the pattern of turnover per person employed, but with a more modest growth.

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Turnover per persons employed 150,0 140,0 130,0 120,0 110,0 100,0 90,0 1999

2000

2001

2002

2003

2004

2005

2006

2007

Manufacture of motorcycles Total manufacturing Manufacture of motor vehicle, trailers and semi-trailers

(*) Data refer refer to Belgium, France, Germany, Italy, Portugal, Spain, the United Kingdom as a whole.

Turnover

The crisis that started in 2008 did not have, in that year, a strong impact on employment in industry, but the drop in the demand affected substantially the production and, consequently, the turnover.

130,0

120,0

The sectorâ&#x20AC;&#x2122;s turnover also saw a positive trend between 2006 and 2008 (only in Spain a decline was recorded). However, the positive change over the 2-year period is due to strong increases between 2006 and 2007, whereas between 2007 and 2008 turnover tended to decline.

110,0

100,0

90,0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2007

2008

Manufacture of motorcycles Total manufacturing Manufacture of motor vehicle, trailers and semi-trailers

Apparent labour productivity 140,0 130,0 120,0 110,0 100,0 90,0 80,0 70,0 1999

2000

2001

2002

2003

2004

2005

2006

Manufacture of motorcycles Total manufacturing Manufacture of motor vehicle, trailers and semi-trailers

ACEM REPORT The Motorcycle Industry in Europe

The downstream activity Downstream activity is intended here as the sale (both retail and wholesale), maintenance and repair of motorcycles and related products.

There are however important structural differences across these countries: Italy, where the sector is very fragmented and dominated by small enterprises, accounted for 25% of total enterprises and for â&#x20AC;&#x153;onlyâ&#x20AC;? 20% of employment.

In the EU more than 38 000 enterprises and nearly 115 000 people are employed in maintenance and repair of motorcycles and trade of related products. Unsurprisingly, the largest Member States (France, Germany, Italy, Spain and the United Kingdom) accounted for the highest proportions of enterprises (66%) and of employment (73%).

Conversely, Germany, France and the United Kingdom, where enterprises were generally larger in size, recorded greater shares for employment than for the number of businesses. Spain stood somewhere in the middle, recording similar shares for both employment and the number of enterprises.

For 2008 the turnover of trade and repair of motorcycle amonuted to 24.3 million Euro.

In all countries trade of motorcycles is more important for employment than for turnover, which is clearly due to the fact that PTW generally have lower unit values than motor vehicles, and that such values are not compensated by the quantities (number of units) sold.

Employment in Downstream Sector - Split by Country PTW Sales, Maintenance & Repair Enterprises MS Share of Employment Spain 10%

Greece 7%

Netherlands 3% Portugal 4%

United Kingdom 14%

Sweden 2%

Finland 1%

Belgium 2%

Others 9%

Germany 14%

France 14%

Italy 20%

Hungary 1%

Other countries 4%

Austria 2%

Poland 2%

Average size of enterprises in the trade and services of motorcycles, by Member State, Downstream Sector

Employment in the downstream sector An analysis of the medium-term evolution of employment and turnover in trade of motorcycles compared to total motor trade in the EU highlights the following key aspects:

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â&#x2C6;&#x2019; EU average: 3 persons employed

- over ver the period, both sectors recorded an increase in turnover and employment; - employment yment growth was higher in PTW trade (+36% over the period) than in total motor trade (+25%); - the evolution volution of turnover was instead greater in total motor trade (+55%) than in PTW trade (+29%); - in 2008 the economic crisis isis substantially affected the performance of enterprises, and both PTW and total motor trade saw reductions in the turnover. The impact was particularly remarkable in PTW trade, where turnover dropped by 7.5% in 2008 compared to 2007 (in total motor trade turnover fell by â&#x20AC;&#x153;onlyâ&#x20AC;? 3.9%).

Evolution of employment and turnover during the 1999-2008 period (1999= 100)* Number of persons employed

Turnover

140,0

160,0 Trade of motorcycles

Total motor trade

140,0

130,0

Trade of motorcycles Total motor trade

130,0

120,0 120,0

110,0

100,0

100,0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

* Data exclude the following countries: Estonia, Ireland, Greece, France, Luxembourg, Malta, the United Kingdom. France and the United Kingdom have been excluded because information on employment relating to 2008 was not available; other countries have been excluded because there were too many missing data in the time series. For a few other countries, some missing information in the time series has been estimated.

ACEM REPORT The Motorcycle Industry in Europe

The upstream activities : a tentative estimation Employment in the upstream activities of the PTW market can be broadly estimated (as of 2007) at nearly 23 000 people, while turnover at nearly 2.5 billion euro. In relative terms, such values correspond to 2.4% of total employment of the manufacture of parts and accessories for motorcycles and their engines and for 1.2% of turnover. Across the Member States for which data can be calculated, Italy ranked by far on top of the scale: it recorded about 14 700 persons employed and a turnover of nearly 1.5 billion euro allocated to the manufacturing of motorcycles, which corresponded respectively to 8.4% and 17.9% of the entire sector “manufacturing of parts and accessories”. Relatively high figures are also estimated for Spain: about 2 600 persons employed and a turnover of 400 million euro. However, in this case the proportion of the sector “manufacturing of parts and accessories” allocated to the motorcycle market is much lower than in Italy (4% of employment and 2.7% of turnover). Other countries where the activities upstream to the PTW industry are estimated to account for relatively high shares in total manufacturing of parts and accessories are Portugal (8.8% of total employment, corresponding to around 1300 persons) and Austria (7.6%, 1000 persons).

The European PTW sector : an overview Number of Companies

2008 Turnover (€ bn)

Manufacturing 2% Upstream 1%

Manufacturing 21%

Upstream 7% Downstream 97%

Downstream 72%

Total sector € billion 33.8 − Manufacturing 7.0 − Upstream 2.5 − Downstream 24.3

Total sector: 39,000 + enterprises − Manufacturing: anufacturing: 960 (including micro-businesses) − Upstream: 500 − Downstream: 38,400

Employment in the PTW sector Manufacturing 16%

Upstream 14% Downstream 70% Total sector − Manufacturing − Upstream − Downstream

152.000 jobs 27.000 23.000 15.000 53

ACEM REPORT The Motorcycle Industry in Europe

Internal Market and Competition - Evidence of unfair practices Since 1992 EU legislation on the type-approval of two and threewheeled motor vehicles regulates and harmonises the construction standards of PTWs. This process achieved a reduction in the overall exex tent of type-approval testing, compared to compliance with previous national regulations. Nonetheless the resultant EU Type-approval process remains complex and expensive. ACEM has observed cases where vehicles sold on the EU market do not meet type-approval standards, showing that manumanu facturers or importers avoided compliance, deliberately or otherwise, in order to gain an unfair competitive advantage, thereby also posing a threat to the health and safety of users and citizens.

Market surveillance authorities should not underestimate their role in contributing to maintain a level playing field. Control programmes of imported PTWs should be developed with adequate means enabling market surveillance authorities to perform efficient and systematic checks.

Evidence from the UK In 2007 UK’s Department for Transport (DfT) carried out tests on 4 PTWs as part of its Type-approval compliance programme. All four motorcycles were manufactured in the Chinese People’s Republic by major CPR manufacturers.

Over a period of several years strong evidence has been gathered indicating that a concerning number of motorcycles, scooters and mopeds imported from manufacturers based in the Chinese Peoples Republic (CPR) do not comply with the standards required by the conformity of production obligations in Directive 2002/24/EC.

The compliance project was carried out by the Vehicle Certification Agency (VCA) on behalf of DfT. Some 95 assessments were carried out and there were some 21 failures of compliance.

This practice poses a threat to consumers at risk of buying potentially unsafe products, to the environment and to manufacturers who must struggle with an unfair competition.

Evidence from Italy

Non compliance with type-approval is used as an unfair cost reduction factor in addition to the enormous differential in labour costs between China and the EU. The preparation of the new Framework Regulation creates an opporoppor tunity to review the compliance arrangements, and recommendations have been made for improvements. A failure to address these deficiendeficien cies carries the risk that the type-approval process will be devalued, and simply become a costly bureaucratic exercise burdening those willing to “play by the rules”, and avoidable for those less scrupulous.

ACEM defends the right of European and extra EU manufacturers to compete in the EU market on a level, fair and mutually respected playplay ing field.

PTWs imported from China that were randomly picked from the market and tested in 2009 failed to comply with EU Type Approval in several respects. Again, braking non compliances featured, 3 of which were potentially dangerous, and excessive CO emissions were evident, varying from 20% over the conformity of production limit, through 5 and 10 times the limit, to being outside the scale on the test equipment.

International Trade : A Strategic Priority The European PTW industry firmly supports the EU in its trade negotiation programme, and encourages international agreements that provide mutual benefits and shared rewards for the industry at home and for partners abroad.

The European PTW industry is in favour of trade agreements fostering innovation, growth and prosperity for the EU and for partner countries. However, in order to reinforce competitiveness, bi- and multi-lateral trade agreements should be reciprocal, to compensate potentially negneg ative effects on EU employment levels. Trade agreements must take into account the sustainability and longterm prosperity of European PTW manufacturers and their intrinsic nana ture consisting mainly of small and medium enterprises.

4,000 3,500

These figures however fail to highlight the growth in the number of units imported into the EU, mainly from China, consisting of low cost and low quality products.

2,500 2,000 1,500

Exports

1,000 500 0 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

During the 2000 – 2010 period, the “historical” trade deficit of the extra EU PTW exchanges suffered from a significant drop of 36%.

Trade Balance 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Trends

-500 -1,000 € Million

Over the last 10 years the value of extra EU imports of Powered twowheelers decreased by 19%, while the value of extra EU exports has grown by 35%. While the impact of the financial and economic crisis is noticeable for 2009 and 2010, it did not modify the general trend.

Imports

3,000 € Million

Exports are key to sustaining jobs in the motorcycle sector. They concon tribute to promote Europe’s economy, and give the industry a standardsetting role in foreign markets.

International Trade

4,500

-1,500 -2,000 -2,500 -3,000

Selected figures of PTW Asian markets: (million units 2010) • China 20+ • India 12.5 • Indonesia 7.3 • Thailand 1.7 (2008) - Philippines 0.6 (2008) 55

ACEM REPORT The Motorcycle Industry in Europe

Export Partners 6,000.000.000

2,500.000.000

5,000.000.000

2,000.000.000

4,000.000.000 € Million

€ Million

Import Partners 3,000.000.000

1,500.000.000

3,000.000.000

1,000.000.000

2,000.000.000

500.000.000

1,000.000.000

0 2000

2001

2002 Japan

2003 China

2004

2005 USA

2006

2007

Taiwan

2008

2009

2010

2000

Thailand

Japan, China, the US, Taiwan and Thailand are still the main import partner countries. While over the 10-year period imports from US and Taiwan remained unchanged, imports from Thailand and moreover China benefited from a steadily growth. However, the imports from Japan suffered from a huge drop over this period with a -53% reduction. The main export partner countries are the US, Switzerland, Japan, Australia and Vietnam. Exports to Switzerland and Japan were stable over the period, whilst the crisis mainly harmed the exports to the US. Australia and Vietnam both represent promising export partner countries. The exports to China remain very low (below 10 million €) due to unfair non-technical barriers to trade such as but not limited to motorcycle prohibition above a certain engine capacity, or registration quotas..

2001

2002 Japan

2003

2004

Australia

2005 USA

2006

2007

Vietnam

2008

2009

2010

Switzerland

Market Access About 80% of the worldwide PTW market is located in Asia which obviously offers enormous potentials for the European PTW industry. However trade barriers prevent most of the high technology products to be exported there. As a way to circumvent tariff and other non-technical barriers the EU motorcycle industry is investing and deploying manufacturing sites locally. China, India, and Thailand host subsidiaries of EU manufacturers. A similar situation is observed in South America and in Brazil in particular, where the only way to penetrate the market is to establish a local presence. Current FTA negotiations

Competitiveness through Free Access to Extra-EU Markets Most of the South-East Asian markets do not allow the imports of high engine capacity motorcycles by adopting barriers. South Korea provides a unique example: despite the signature of a bilateral trade agreement with the European Union, large motorcycles have no possibility of being marketed in this country.

The EU is currently engaged in a number of Free Trade Agreement negotiations. Some agreements have already been concluded, while others are still being discussed. European industry follows each of these negotiations with interest.

Highway Bans Korea, unlike other developed countries, prohibits all motorcycle traffic on its toll ways, major highways and designated bridges. Additionally, certain roads in Korea, including many new national roads, are sometimes designated “automobile-only”, thereby also prohibiting PTWs. There is no underlying rationale for imposing such motorcycle bans. These bans severely limit the use of large displacement PTWs, whether for basic transportation or leisure touring, making them undesirable to the average Korean consumer. Similar prohibitions exist in some other Asian countries, in particular in China, the first worldwide market for PTWs (in terms of units) as certain cities or districts limit PTW registrations, while others simply prohibit PTWs from circulating.

Selection of some of the highest motorcycle tariffs • India 100% • Vietnam 90% • Thailand 60% • Philippines 30% • Malaysia 30% • Brazil 20% • Argentina 20% UN-ECE regulations A short term introduction plan of all PTW related UN-ECE regulations in South-East Asian and South American countries would certainly result in a harmonized situation beneficial for manufacturers and consumers. High Potential of PTW Exports

Tariffs and Taxes In addition to a significant set of taxes (luxury tax, some form of VAT, registration tax, etc.), many countries maintain motorcycle tariffs. These duties and taxes raise the retail price of PTWs to levels far exceeding the means of most customers. In this respect, India with a market ranging in the area of 8 million PTWs, imposes a 100% tax, leading the group of countries with the highest import duties.

Asian sian and South American motorcycle markets represent a very significant growth potential, in terms of PTW sales. In the short term, 4-5 years, the value of ACEM manufacturers products could easily reach a balance should the aforementioned barriers be removed. This scenario could easily lead to a positive exchange balance in terms of value in favour of the EU and, with the further expansion of distribution capabilities, exports could reach around one billion €.

The removal of this extraordinary duty would establish a fair and balanced situation of the exchange terms between these countries and the European Union.

ACEM REPORT The Motorcycle Industry in Europe

HOW DOES ACEM WORK? ACEM’s membership is composed by 13 manufacturers and 17 national associations of 14 countries with business activities and interests in all the EU and beyond. In order to ensure its mission, the Association is structured in Committees, each addressing a specific policy field. Where required ACEM sets up task forces made up by experts pursuing specific goals. 5 Committees deal respectively with Legal Affairs, Road Safety, Environment, Market and Transport Policy, Electric Vehicles. A Coordinating Committee oversees the activity of the Committees. ACEM permanently liaises with the European Institutions such as the European Commission, the European Parliament, the European Economic and Social Committee and, through its members, the Council of Ministers. Technical matters related to PTWs are dealt by ACEM with the European Committee for Standardization. As a member of IMMA, the International Motorcycle Manufacturers Association, ACEM is represented within UNECE, the United Nations Economic Commission for Europe, and the International Transport Forum under the aegis of the OECD (Organisation for Economic Cooperation and Development). ACEM takes part in the Motorcycle Community, together with FEMA (Federation of European Motorcyclists’ Associations) and FIM (Fédération Internationale de Motocyclisme). ACEM is a member of the Forum for the Automobile and Society. The FAS is a forum bringing decision makers from the motor industry and motoring organisations together with key policymakers from major legislative institutions. The FAS acts as a place to exchange information and views and as a think tank for all those interested in automotive issues.

ACEM Organisational Chart: Hendrik von Kuenheim, President (BMW Motorrad) Stefan Pierer, Vice President (KTM) Leo Francesco Mercanti, Vice President (Piaggio Group) • Dietmar Krohm, Coordinating Committee (BMW Motorrad) • Anna Wetcke, Legal Affairs Committee (BMW Motorrad) • Pascal De Jonge, Road Safety Committee (Honda Motor Europe) • Bob Mills, Environment Committee (Triumph) • Craig Carey-Clinch, Market and Transport Policy Committee (MCIA) • Régis Biguinet, Electric Vehicle Committee (Peugeot Scooters)

The Activity of ACEM’s Committees A presentation by ACEM’s Coordinating Committee Chairman Dietmar Krohm “ProvidiNg A loNg terM PersPective for AN iNNovA ov tive ovA tive, coMPetitive ANd d sust sustA AiNAble Powered-two-wheeler wheeler iNdustry iN w i euroPe” When we talk about motorcycles we face a wide and ever-changing landscape of vehicle typologies. The motorcymotorcy cle family is not limited to Powered Two-Wheelers neither to single track motorized vehicles. Today it includes scooters, tricycles, quadricycles which are intended for specific usages and meet the expectations of a wide variety of customers. Despite the proven flexibility of manufacturers to constantly answer the demand for new products, the intrinsic challenge tied to this imim mense variety of models and segments is to cope with this complexity. Behind the image of an innovative and proactive industry, able to readread ily respond to the impact of an unprecedented economic crisis, lies a complex system which has to take into account seasonal changes of dede mand, low economies of scale, market fragmentation and intense comcom petition from emerging markets especially in the low cost segments.

ACEM’s job is to convey this complexity by meticulously depicting the fairest and most accurate image of the industry without overloading the communication channels. Within a comprehensive strategy aiming at carrying the PTW industry further toward a secure and prosperous future, the task of the Coordinating Committee is to tackle this complexcomplex ity supporting it with a sustainable vision and setting concrete goals. The structure of our association has changed to answer emerging chalchal lenges and turn them into opportunities for the industry. ACEM created a working group whose task is to provide a long term perspective as regards to electric mobility, a field full of potential, albeit requiring a vivi sion able to see beyond the much paraded announcements. FurtherFurther more, positive developments in the urban mobility segment spurred a merger of our committees dedicated respectively to market policy and integrated transport. In the course of the past year and a half, since the beginning of the discussion in the European Parliament and Council of the long awaited Regulation on L-category vehicles type-approval, we have experienced how such a complex message needs support, strong arguments but particularly persistence to be fully understood. Positive exchanges have been going on and thanks to the engagement of ACEM, policy makers can base their decisions on the best knowledge of our sector ever availavail able. Today ACEM Members are at the forefront of a new paradigm of momo bility. Building on their experience and heritage ACEM Members are committed to set the highest standards for a sustainable and innovative concept of motorcycling.

ACEM REPORT The Motorcycle Industry in Europe

Market and Transport Policy Committee Craig Carey Clinch “th thAN th hANks to their sPAce ce sA sAviNg ch rActeristics, chA cteristics, Ptws cteristics w do Not suffer ws froM, M Nor M, or cre creAte te, coNgestioN “ The EC’s White paper on Transport raises many important questions about mobility and the future of personal transport. The Motorcycle Industry is in the ideal position to provide a meaningful contribution to the debate, through highlighting the opportunities for society that the PTW offers. PTWs provide a practical solution to the problems of traffic congestion, the lack of truly integrated transport policies and underdeveloped infrastructure (which prevents the proper maximisation of efficient personal mobility), plus aspects of economic growth and quality of life in Europe. This challenge is true especially for European cities where 80% of the population will live in 2020. It is the car driver’s most agonizing everyday experience: the search for an empty parking place. Circling, narrowly missing a spot, outmanoeuvring other motorists to finally ease into a space. In cities, it is also a vexing traffic problem, with further impacts on society. Drivers cruising for parking spots generate 30% of all downtown congestion, according to several estimates. Research found that drivers looking for parking add considerably to the mileage needed just for the trip they made to reach their destination. PTWs offer easier access to city centres, and parking. While some European cities foresee dedicated parking places for motorcycles (more than 40,000 in Barcelona), other urban areas still fail to take full advantage of this form of light mobility and should follow these good practices.

Cities need efficient transport systems to support their economy and the welfare of their inhabitants. Around 85% of EU GDP is generated in cities. Urban areas face today the challenge of making transport sustainable in environmental (CO2, air pollution, noise) and competitiveness (congestion) terms while at the same time addressing social concerns. Urban mobility is of growing concern to citizens. Nine out of ten EU citizens believe that the traffic situation in their area should be improved. The choices that people make in the way they travel affect not only future urban development but also the economic well-being of citizens and businesses. In recent years cities have experienced a boom in PTW use with increases of 87% for cities such as Rome and Barcelona. The EU market for PTWs has been particularly difficult since 2008; however the Motorcycle industry is in the ideal position to turn many of these challenges into opportunities. With further optimisation of internal combustion engine and new propulsion technologies (hybrid, electric) already on the market and potentially constituting a significant segment well ahead of automobiles, as well as with innovative vehicle concepts, the Motorcycle industry could lead the way towards more responsible vehicle usage in densely populated areas, to the benefit of society as a whole. However, this will rely on a regulatory and public policy framework which both recognises the role of PTWs in transport and supports industry through ensuring a level playing field with other transport modes in EU regulation and public policy. There is also a need for any legislation to be properly thought through and supported by independent background research - something which has not often been the case.

Road Safety Committee Pascal De Jonge “ fety is oNe of the toP Priorities for “sA the Powered two-wheeler wheeler iNdustry” w ACEM members discuss and develop within the Safety Committee industry positions and proposals on all safety and vehicle construcconstruc tion related type-approval issues, whether they are to be introduced in the European Union or at international level (UNECE). Currently, ACEM’s Safety Committee is deeply involved in working with stakeholders on the future EU PTW Regulation, aimed at simplifying motorcycle technical legislation and introducing new safety requirements. This new Regulation is expected to be implemented from around 2014.

ACEM’s “Brake Commitment”, proposing a 75% target of motorcycles to be equipped with advanced braking systems by 2015, is one of the measures developed with the contribution of this working group. In addition to monitoring and reviewing ongoing European projects that aim to improve the safety situation for motorcyclists, the Safety Committee, together with the ACEM Safety Coordinator, is in charge of overseeing ACEM’s involvement in some of these projects. One of the most prominent projects in which ACEM was involved in, was eSum, identifying, developing and demonstrating measures designed to dede liver safer urban motorcycling. The Road Safety Committee, in close cooperation with the relevant auau thorities, also supervises and develops the safety initiatives that the PTW industry have collectively engaged in, such as creating a mandatory scheme for periodical roadworthiness inspection for PTWs, developing a European standard with safety requirements for non type-approved motorcycles used on private terrain, etc.

ACEM REPORT The Motorcycle Industry in Europe

Environment Committee

Electric Vehicle Committee

Bob Mills

Régis Biguinet

“PlAyi y Ng our PArt iN reduciNg eMissioNs” yi

“AceM M le leAds the w wAy iN the develoPMeNt of Pre reM MiuM electric vehicles”

The ACEM Environment Committee focuses on a wide-range of subjects relevant to the PTW industry. Members come from both manufacturers and national associations, bringing together a wide range of expertise, knowledge and experience. The mission of the committee is to develop the industry’s environmenenvironmen tal policy, with the overall objective of reducing the environmental imim pact of products and processes. To this end, and throughout 2011, the committee has worked on practical and effective solutions to emissions issues raised in the European Commission’s proposal COM(2010) 542. We have brought a wealth of experience and knowledge to the subjects as a willing and constructive partner to the regulators. As part of this, fully detailed proposals have been made on emissions durability, evaporative emissions controls and on board diagnostics. Other contributions include input on energy consumption for traditional, hybrid and pure electric vehicles, CO2 measurement and, in the name of harmonisation, our knowledge of international regulation from all over the world. Other significant work items have included participation in the completion of a revised ECE R41 noise regulation and the preparatory work for other PTW noise regulations in the Geneva forum.

Electric vehicles will more and more bebe come a common sight in Europe’s cities due to growing mobility needs and congestion challenges. This trend has been stressed by the European Commission in its White Paper on Transport, but regisregis tration statistics clearly show that the new e-PTW segment is already a reality. ACEM Members are leading this process. In 2011 they created a new committee specifically devoted to develop a common sustainable stratstrat egy for the deployment of electric PTWs, as part of a comprehensive long term vision for the sector. The main objective if this Electric Vehicle Committee is to support the development of premium, safe electrical L-category vehicles as dependdepend able and environmentally friendly vehicles throughout their lifecycle. ACEM seeks to establish an international regulatory framework aiming at facilitating the roll-out of electric PTWs. The priority lies in harmonisharmonis ing connectors and charging modes to make the European EV market unique and e-PTWs displacements free through Europe. StandardisaStandardisa tion of qualification methods are strongly supported before regulation and standardisation organisations at UN, EU and member states level. ACEM will also provide customers with ample information on EV specispeci fications in order to help them in their choice. To safeguard the potential of this promising segment, the jobs related to it and its contribution to society, ACEM is in the process of developing an industry commitment seeking to promote superior quality electric vehicles manufactured in Europe.

Legal Affairs Committee Anna Wetcke “ProtectiNg the legitiMAte use of brAN br ds ANd ProvidiNg legA leg l couNsel” sel sel” Fair and transparent competition is one of the fundamental principles on which the European Union is built. This is why so many efforts are devoted to securing an open and equal market for everyone. ACEM’s Legal Affairs Committee provides counseling to the PTW indusindus try on specific questions and issues related to legal and regulatory isis sues. The Committee provides objective information on the numerous legal aspects relevant to the PTW Industry and has engaged itself in monitoring legal subjects related to the transport and enterprise secsec tors. It collects and provides relevant legal information to the members of ACEM in cooperation with the other ACEM Committees. Drawing on its experience ACEM is able to design solid and legally sound strategies in defending the position of the industry in the decision makmak ing process. Decisions of the Coordinating Committee containing legal aspects as well as modifications to the ACEM statutes are prepared by the members of the Legal Affairs Committee. The Committee also works to protect the legitimate use of brands and fosters the enforcement of intellectual property laws. The Legal Affairs Committee is made up of lawyers and other specialists enabling ACEM to have a permanent input from the daily business and priorities of the industry. Thereby ACEM has access to a wealth of experexper tise and applied legal experience. The subjects the Legal Affairs Committee currently deals with include the new Block Exemption Regulation on Vertical Restraints and the Regulation on Approval and Market Surveillance for L-category vehicles. 63

ACEM REPORT The Motorcycle Industry in Europe

ACEM Secretariat The office of ACEM is based in Brussels, where a staff of 7 persons work together to coordinate and implement all the activities of the network. The ACEM office is responsible for supporting the various Committees and Working Groups, for preparing meetings and conferences, and for providing a range of information and other services to members.

Veneta Vassileva Safety Coordinator v.vassileva@acem.eu

Jacques Compagne Secretary General j.compagne@acem.eu

Adedoyin Adedipe Marketing Database Operator a.adelope@acem.eu

Antonio Perlot Public Affairs Manager a.perlot@acem.eu

Rita Sterckx Financial & Administrative Manager r.sterckx@acem.eu

Filippo Segato Communications Officer f.segato@acem.eu

HĂŠlĂ¨ne Temmerman Assistant h.temmerman@acem.eu

Association des Constructeurs Européens de Motocycles

Avenue de la Joyeuse Entrée, 1 1040 Brussels BELGIUM Phone : +32 (0)2 230 97 32 Fax : +32 (0)2 230 16 83

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