Memorandum by Renault Nissan
END OF LIFE VEHICLES DIRECTIVE
In our letter of 4 October we mentioned that
Renault and Nissan were still evaluating their position concerning
the options being considered for implementation of the directive.
Following further discussions with other manufacturers we can
say that both Renault and Nissan support the proposals made to
the Select Committee by the Ford Motor Company.
In our view, implementation of the directive
should provide benefits to a number of interested parties. The
key benefits of the Ford proposals we see as follows:
No cost would be incurred by the
last owner of a vehicle when it is returned to an Authorised Treatment
The last owner of a vehicle would
be able to decide to which Authorised Treatment Facility it is
Establishment of an ELV network system
driven by a free market.
Increased competition between Treatment
Sharing of the burden of disposal
between all economic operators.
Introduction of a market mechanism
to separate positive and negative value ELVs.
Avoidance of the need for manufacturers
to make accruals for retrospective liabilities.
With regard to timing, within the European Directive
there is the possibility for Member States to implement manufacturer
responsibility for free take-back earlier than 2007. We believe
that it would be both unreasonable and inequitable to have an
early adoption of this article.
The Ford proposals are commensurate with the
draft regulations already published in other major EU car manufacturing
countries. Moreover, they would not handicap the competitive position
of the UK or limit its attractiveness for future inward investment.
Renault UK Ltd
Nissan Motor (GB) Ltd
12 October 2001
In 1999 the parent companies of Nissan and Renault
formed a strategic Alliance, the purpose of which is to achieve
profitable and balanced growth for the two partners through the
creation of a powerful bi-national group. Renault has a 36.8 per
cent equity holding currently in Nissan Motor Limited, the parent
company of the Nissan Group.
Both companies market their vehicles in the
UK through their own and franchised dealerships. In the year 2000,
Renault had a 7.25 per cent share (161,000 cars) of the new car
market, and Nissan a 3.8 per cent share (85,000 cars). The UK
sales and marketing arms of both companies share a single office
site in Maple Cross, Hertfordshire employing some 400 staff.
In addition, Nissan also manufactures and sells
vehicles in the UK. Nissan Motor Manufacturing (UK), based in
Sunderland, was established in 1984 and is the largest car producing
plant in the country. Production in 2000 was 327,701 vehicles
of which some 75 per cent are exported to some 45 countries worldwide.
The factory employs some 4,500 staff and was named in the World
Markets Research Centre 2001 survey as the most productive plant
in Europe for the fifth year running, producing 105 vehicles per
annum per employee.
Early in 2001 the decision was made to locate
production of the company's new Micra car at its Sunderland factory,
following the decision of the Government to award the company
a Selective Regional Assistance Grant of some £40 million.
Production of the new car is scheduled to start at the end of
2002 and will lead to the recruitment of an extra 500 staff at
the Sunderland factory.
By the end of 2002 cumulative investment in
the Nissan Sunderland factory since 1984 will amount to some £2