Josep Maria Vall: "I don't think combustion engines will disappear"

BadalonaThe automotive industry is one of the main industries in our country. In recent years, however, the sector has undergone very significant changes, and has transformed. Electrification and the emergence of Chinese cars have revolutionized the vehicle market, and manufacturers are having to adapt at breakneck speed. We talk about it with Josep Maria Vall (Barcelona, 1947), president of the Cluster of the Automotive Industry of Catalonia (CIAC).

Last week, Martorell launched its first electric line with the start of production of the Cupra Raval and the Volkswagen ID. Polo. Is electrification the way forward?

— Indeed yes. We have spent many years talking about electrical transformation and electrification, but we hadn't really believed it. Until now, when there is a clear determination for change: the future will be electric. In the next two or three years we will see how registrations and the number of charging points will increase greatly in our country.

And what has changed, now?

— In recent months, I believe consumers have made the click to say, "now is the time for the electric car." We really see how the market is already taking a trend towards electrified vehicles. There is no longer the fear that there was. Before, when one considered buying an electric car, they wondered what would happen, if they would have enough range, if the battery would last long enough, or if they would really have charging points within reach. At this moment, all of this has already changed.

A few weeks ago, Ebro also announced that it will start producing a 100% electric vehicle in the Zona Franca of Barcelona. It will also be a city car, utilitarian, like those from Martorell. Is it the gap to attack?

— This is the big question. When a person wants to change their car and buy one, which one do they opt for? In recent years, the appearance of regulations for entering cities and, at the same time, the doubt about the autonomy of electric cars have impacted the market. Today, however, for a person whose lifestyle is to use the car to get around the city, the ideal is a small electric car, as they will find possibilities to recharge it. Despite this, the electric car for long distances is not yet ideal. But this will also be reversed in the next three years.

Will it be reversed because they will gain autonomy or because they will be easier to recharge?

— Because there will be more charging points and, at the same time, batteries will have more and more autonomy. The appearance of electric cars will be enormous.

And for combustion vehicles, what future awaits them in the eyes of the sector?

— The European Union says that by 2030 they will stop being manufactured, but it is complicated. I don't think combustion engines will disappear. They will surely represent a much smaller part of the car fleet, but I think they will continue to function. I also think that new fuels will appear that will reduce the impact on the environment.

In recent times, the market has also seen the emergence of Chinese cars. What challenges does this pose for the European ecosystem?

— The main challenge is that their arrival is carried out in an orderly manner, trying not to let competitiveness decline and ensuring that the workforce is local. The great example is Ebro, which has been able to absorb the entire workforce of the former Nissan. It is a clear success story. However, on the other side of the coin is the battery gigafactory being set up in Zaragoza, where they say they will bring 1,500 Chinese workers for the plant. This is not the way.

And what opportunities does the arrival of these brands generate?

— Currently, all Chinese companies import components from China. In the short to medium term, this should change so that they start to locate their suppliers with local manufacturers. This cannot take long to happen, we cannot wait ten years, it should happen in a couple of years at most. If we manage to make this happen, component manufacturers can benefit greatly.

In recent weeks, several component plants have announced layoffs.

— We are experiencing a total transformation of the sector. We are shifting towards electromobility, when, both in Catalonia and at a European level, the majority of manufacturers are dedicated to combustion engine components. Faced with the changing context, not everyone is adapting quickly, it is not easy. There are manufacturers who have to adapt their capacity to the new demand and, if this decreases, it has an impact on their workforces. But I believe this will be a transition period until manufacturers fully transform.

Amidst the sector's transformation, a new field has also emerged to explore. Administrations are promoting dual technologies so that the automotive industry can also contribute to defense and security. What fit do you see for this?

— Until recently this area was completely unknown, but now administrations are allocating money to it under the idea that Europe must gain strategic autonomy. And, if there is money, everyone is looking at how they can contribute. From the automotive sector, with the infrastructure we have, we can help manufacture something that for now we still don't know what it will end up being. That's why we have contacted companies in the sector, such as Indra.

And what can entering it mean for manufacturers?

— It is an opportunity to diversify, but not to substitute. The defense sector has very strong regulations and much stronger safety standards than the automotive sector. They are different things. In terms of volume, too: it is being discussed that, for defense, perhaps two vehicles need to be assembled per week, while more than 1,000 automobiles are made per day. How the integration should work still needs to be finalized.