Protecting European consumers in light of car shortages at dealerships

Subject: Protecting European consumers in light of car shortages at dealerships

The global microchip shortage is affecting a large part of European industry and the automotive sector in particular.

This semiconductor scarcity is causing shortages at European car dealerships due to a fall in production which leads to stock shortages, delayed deliveries and breaches of consumer contracts.

With no immediate solution in sight, this situation could continue for a further year and a half, according to the Commission's own projections.

This problem has come to the fore at a time when Europe is in the midst of the process of decarbonising mobility, in which new environmental requirements are being used to encourage the purchase of cleaner cars, to establish new standards to be met by consumers and to dissuade the use of older and more polluting cars.

Consequently, while consumers are being encouraged to buy new cars, these shortages and supply bottlenecks leave them at risk of contracts not being honoured.

In the light of the above, we should like to ask the following questions:

1. Is the Commission aware of this vulnerable situation that consumers find themselves in?

2. In view of this situation, does the Commission plan to take any measures to protect consumers and ensure compliance with environmental standards?

Answer given by Mr Breton on behalf of the European Commission

(9 February 2022)

The Commission closely follows the situation of the semiconductors shortage and is aware that it affects both the industry and the consumers. In particular, the Commission services provided an in-depth analysis of the semiconductors sector together with the adoption of the updated Industrial Strategy (1).

As the Honourable Member indicated, the shortage may take time to be resolved and, also because of the rise of raw material prices as well as other factors, the price and availability of vehicles are uncertain for the consumers in Europe — and more generally in the world.

In July 2021, the Commission has launched the Alliance on Processors and Semiconductor technologies (2), which will identify current gaps in the production of microchips and the technology developments needed. It will consider the needs of different industrial sectors that are strategic to Europe, including the automotive sector.

The upcoming proposal for the European Chips Act will create the appropriate investment conditions to ensure security of supply along the entire value chain, and to better withstand possible future crises in this market that is essential for the industries of tomorrow.

With regard to the impact on environmental standards, the Commission has no indication that the chip shortage will have lasting effects on the rollout of cleaner cars. In the third quarter of 2021, EU registrations of battery electric, plug-in hybrids and hybrid passenger cars represented almost 40% of the market, almost a 100% increase compared to 2020.

⋅1∙ https://ec.europa.eu/info/sites/default/files/strategic-dependencies-capacities.pdf

⋅2∙ https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3733