1st ICAI 2020

ICAI 2020 Proceedings of the 1 st International Conference on Automotive Industry 2020

November 12 – 13, 2020 Mladá Boleslav, Czech Republic

The conference is organised by: ŠKODA AUTO University

Conference partners

Proceedings of the 1 st International Conference on Automotive Industry 2020 Publisher: ŠKODA AUTO University Na Karmeli 1457, 293 01 Mladá Boleslav, Czech Republic Editor: prof. Ing. Stanislav Šaroch, Ph.D. Technical editors: Ing. Hana Čáslavová, MPA RNDr. František Rozkot, CSc. Cover design: RNDr. František Rozkot, CSc.

ISBN ISBN ISSN ISSN

978-80-7654-016-3 (Print) 978-80-7654-015-6 (Online)

2695-0073 (Print) 2695-0081 (Online)

Copyright © 2020 by ŠKODA AUTO University Copyright © 2020 by authors of the papers

Papers are sorted by author’s names in alphabetical order. All papers passed a double-blind peer review process. The authors of the individual papers are responsible for their content and linguistic correctness.

Scientific Committee (in alphabetical order): Ing. Josef Bradáč, Ph.D. ŠKODA AUTO University, Czech Republic doc. Ing. Romana Čižinská, Ph.D. ŠKODA AUTO University, Czech Republic doc. Ing. Jiří David, Ph.D. ŠKODA AUTO University, Czech Republic prof. Ing. Vojtěch Dynybyl, Ph.D. ŠKODA AUTO University, Czech Republic Assoc. Prof. Jerzy Feliks, D.Sc., Ph.D. AGH University of Science and Technology, Poland

doc. Ing. Martin Kvizda, Ph.D. Masaryk University, Czech Republic prof. Ing. Radim Lenort, Ph.D. ŠKODA AUTO University, Czech Republic prof. Ing. Petr Louda, CSc. Technical University of Liberec, Czech Republic

dr Justyna Bazylińska-Nagler University of Wrocław, Poland prof. RNDr. Petr Pavlínek, Ph.D. University of Nebraska, USA / Charles University, Czech Republic Magdolna Sass, Ph.D. Centre for Economic and Regional Studies, Hungary / Budapest Business School, Hungary prof. Ing. Stanislav Šaroch, Ph.D . ŠKODA AUTO University, Czech Republic doc. JUDr. Václav Šmejkal, Ph.D.

ŠKODA AUTO University, Czech Republic doc. Ing. Pavel Štrach, Ph.D. et Ph.D. ŠKODA AUTO University, Czech Republic

Conference Guarantee prof. Ing. Stanislav Šaroch, Ph.D. ŠKODA AUTO University, Czech Republic Conference Organising Guarantee Ing. Hana Čáslavová, MPA ŠKODA AUTO University, Czech Republic Reviewers (in alphabetical order) dr Justyna Bazylińska-Nagler Ing. Josef Bradáč, Ph.D. doc. Ing. Jiří David, Ph.D. prof. Ing. Vojtěch Dynybyl, Ph.D. Assoc. Prof. Jerzy Feliks, D.Sc., Ph.D. prof. Ing. Radim Lenort, Ph.D. prof. Ing. Petr Louda, CSc. prof. Ing. Stanislav Šaroch, Ph.D. doc. JUDr. Václav Šmejkal, Ph.D. doc. Ing. Pavel Štrach, Ph.D. et Ph.D. doc. Mgr. Jana Vlčková, Ph.D. Ing. Pavel Wicher, Ph.D. Magdolna Sass, Ph.D. Ing. David Staš, Ph.D.

FOREWORD

Ladies and gentleman, dear readers, The automotive industry has been an integral part of modern society for the past century and a half. This sector is developing dynamically in a number of areas. The globalization of the world economy brings challenges to the automotive sector that are related to the optimal setup of value chains and supply chains. These must be reflected in national and supranational economic policies by establishing appropriate regulatory frameworks. For the automotive industry, technical and technological development brings opportunities in many fields, such as the use of new materials or the introduction of digital and information technology elements. The development of alternative drives combined with the pursuit of sustainable development presents a special challenge. Together with the introduction of new business models including the sharing economy, all the topics mentioned above also bring challenges related to the modernization of legal frameworks – including liability in the operation of autonomous vehicles, emission standards, protection of competition and others. All the above-mentioned issues naturally meet at ŠKODA AUTO University, where all its departments are fully engaged in dealing with them. Although the university is still young and has recently celebrated 20 years of existence, it has already become well- established in the international academic networks. We believe that holding the ICAI international conference is another step to help the exchange and sharing of information in these fields and that the ICAI will be a suitable platform for discussing the issues and will bring valuable information to everyone involved in the automotive industry.

Wishing you an inspiring experience.

doc. Ing. Pavel Mertlík, CSc.

prof. Ing. Stanislav Šaroch, Ph.D.

Rector

Conference Guarantee ŠKODA AUTO University

ŠKODA AUTO University

International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

TABLE OF CONTENTS

Foreword

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Automobile Emission Standards under Municipal Supervision – Case T-339/16, T-352/16, T-391/16 Paris, Bruxelles, Madrid v. Commission Justyna Bazylińska-Nagler Development of Organizational Structure Model of Motor Vehicle Production Enterprises Aleksandr Bobkov, Igor Denisov, Oxana Kuchmaeva, Emil Velinov Verification of the Evolution Model of the Production Structure of Enterprises Manufacturing Components for Motor Vehicles Using Cluster Analysis Aleksandr L. Bobkov, Ivetta A. Varyan Mergers and Acquisitions in the Automotive Industry: Combination of FCA–PSA Aleš Borkovec Concept of Autonomous Electric Modular Platform for Transport of Freight and Equipment Josef Břoušek, Jakub Ježek, Tomáš Petr, Robert Voženílek, Pavel Němeček, Lukáš Krčmář Logistics Networks Vulnerability - Modelling and Simulation Approach Lech Bukowski, Jerzy Feliks, Marek Karkula The Role of Life Cycle Assessment as an Environmental Management Tool for Support Decision-Making in the Automotive Industry Dorota Burchart-Korol The Czech Search for Collective Action Instruments: Expected Impacts on the Automotive Industry Petr Frischmann Backward Linkages in the Hungarian Automotive Industry: Where are the Links Concentrated? Tamás Gáspár, Kaoru Natsuda, Magdolna Sass Advanced Joining Techniques for Hybrid Parts Made of Metal and Bio-based Plastics Gunther Göbel, Annett Klotzbach, Philipp Zink, Jens Standfuß Impact of National Wealth and Incentives on Electric Vehicles Market Development in the EU Tereza Hrtúsová Technical and Economic Aspects of Using Magnesium Alloys for Production of Car Components Josef Bradáč, Jiří Sobotka Production Control System Jan Březina

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19

30

40

46

55

62

71

80

88

100

112

122

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A Development of Surface Acoustic Waves Based Method, for Lubrication Film Monitoring of Rolling Element Bearings Jakub Chmelař Improving the Relay Assembly Workstation Performance in a Manufacturing Company – a Case Study Peter Kačmáry, Martin Straka, Andrea Rosová, Oľga Végsöová, Marian Šofranko 140 Quo Vadis Digital Vehicle Forensics? Dagmar Kopencová, Ingrid Matoušková, Roman Rak 147 The Importance and Accuracy of Statistical Data in the Automotive Industry Tomáš Kozelský 157 Sustainability Development Goals Followed by World and European Automotive Industry Radim Lenort, František Zapletal 167 Brief History of Cooperation between the Department of Machine Parts and Mechanisms VŠB – TU Ostrava and ŠKODA AUTO a.s. Miloš Němček, Šárka Hurníková 178 The Relationship Between Economic Value Added and Turnover to GDP Ratio of Automotive Industry in EU-27 Countries Pavel Neset, Romana Čižinsk á 186 The Impact of the Development of Electric Mobility on Consumption of Electric Energy in the Czech Republic Radek Novák 197 Analysis of Error’s Causes in VIN Identifier, Their Consequences and Ways of Elimination Roman Rak 206 Electric Vehicles: Legal Aspects in Europe and Brazil Michely Vargas Del Puppo Romanello, José Geraldo Romanello Bueno 215 Legal Aspects of Autonomous Vehicles in USA and Brazil José Geraldo Romanello Bueno, Michely Vargas Del Puppo Romanello 222 Outward FDI in the Automotive Industries of the Visegrad Countries: a Sign of Increased International Competitiveness of Indigenous Companies? Magdolna Sass 231 Practical Examples of the Use of Machine Vision in the Automotive Industry Jaroslav Sláčala 239 Distribution of New Cars – No More an Issue for EU Competition Law? Václav Šmejkal 247 Automotive Business Development in Central and Eastern Europe: Future Challenges and Perspectives Emil Velinov, Josef Bradáč 258 131

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Value Added Trade Data in Automotive Research Jana Vlčková

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Customers ’ Perception of Value in the Context of Value Co-creation Concept: A Pilot Study Robert Zich, Karolína Svobodová

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Authors Index

289

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Automobile Emission Standards under Municipal Supervision – – Case T-339/16, T-352/16, T-391/16 Paris, Bruxelles, Madrid v. Commission Justyna Bazylińska-Nagler Wroclaw University Faculty of Law, Administration and Economics Uniwersytecka 22/26, Wrocław, 50-145 Poland e-mail: justyna.bazylinska-nagler@uwr.edu.pl Abstract The road transport sector remains a major contributor to smog that is of particular concern in big cities. The EU member states manage air quality in line with the Air Quality Directive (dir. 2008/50/EC) that put forward local air quality targets. For this purpose, local authorities apply specific legal instruments: low emission or pedestrian zones, or car-free days. In joined cases: T-339/16, T-352/16, T-391/16 Paris, Bruxelles and Madrid successfully questioned the EU harmonizing legislation (reg. 2016/646/ EU) on pollutant emissions from vehicles, facilitating their sale in the EU market, but incompliant with Euro 6 standard (reg. 715/2007/EC). This work revolves around the implicit conflict between regulatory autonomy of the cities to enact domestic air quality legislation and – the EU automotive market surveillance system based on the Framework Directive for the Approval of Motor Vehicles (dir. 2007/46/EC). All things considered, cities with their standing under Article 263 (4) TFEU, may become champions for air quality protection if the Commission’s automobile emission standards fail. Keywords: Air Quality Directive, automotive sector emissions, Framework Directive for the Approval of Motor Vehicles, low emission zone, regulatory autonomy of the cities JEL Classification: K23, K32, K33 1.1 Ambient air quality management Ambient air quality management obligations of state authorities stem from both international and EU, as well as domestic regulations. Following the Convention on Long-Range Transboundary Air Pollution (Geneva Convention, 1979) its member states report their annual emissions to the UNECE (United Nations Economic Commission for Europe). In line with the EU Air Quality Directive (2008/50/EC, O.J. L 152, 11. 06. 2008, p. 1) – EU member states are to manage air quality. There are specific legal instruments settled there to be applied by local authorities i.e. air quality plans, reference measurement methods, quality assessment, etc. Domestic public policy regarding air pollution control by the city government is accommodated 1. Introduction

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by the application of the principle of decentralization through regulation. The city government formulates public policies to improve the ability of the community to avoid air pollution and reduce damage to public health caused by air pollution, as well as carry out activities in planning, and controlling air environmental policy programmes that lead to achieving environmental quality (Purwadi, Suhandi, Enggarsasi, 2020, p. 31). Since several years, cities worldwide have started to act on their behalf to curb traffic-related risks by levying urban road tolls, by creating traffic-limited zones, by traffic restrictions or by introducing low emission zones. In case of low emission zones, the most polluting vehicles are either denied access to the specific zones or are subjected to tolls to enter them. The objective of applying low emission zones is to bring down local PM 10, PM 2.5 and NOx emissions, as well as the secondarily formed street-level ozone – O3. Most of these zones affect heavy-duty vehicles, while a growing number of cities also target passenger cars and light-duty commercial vehicles. In European cities, the criteria for low emission zones entrance are based upon the Euro emission standards, the year of first registration as a proxy, or by means of the presence of retrofitted emission control devices, in most cases DPF (Hooftman, Messagie, van Mierlo, Coosemans, 2018, p. 15). In 2016 Europe counted more than 200 low emission zones, mostly in Germany and Italy (http://urbanaccessregulations.eu). 1.2 Emission control in automotive sector To improve ambient air quality, regulations on vehicle exhaust emissions have been progressively implemented by governments forcing the automotive industry to improve their products in terms of hazardous emissions. Vehicle emissions for European passenger cars have been regulated since early 70s XX, and by means of the Euro emission standards since 1992 (Bukowski, 2017, pp. 52-53). The European Union has challenged the automotive industry to develop auxiliary emission control devices (AECD) and strategies for their cars to pass the type-approval process. The latter is based on the New European Driving Cycle (NEDC) (European Environment Agency [on-line], 2020). Substantive differences between the emissions emitted by light duty vehicles during a homologation tests on the NEDC and in practice on public roads prompted the European Commission to enact new regulation to close the gap between emissions reported by vehicle manufacturers and those actually limited, especially in relation to NOx. Besides driver’s behaviour and ambient conditions, this large discrepancy is a combination of two key effects, the cycle itself not being representative of real driving and the load applied to the vehicle (Bodisco, Zare, 2019, p. 2). The solution to minimize the discrepancy between homologation testing and real driving with respect to emissions has been to move part of the homologation requirement of new light duty vehicles from the laboratory to public roads. Lots of vehicles for sale in Europe are homologated outside of Europe, including Australia. For this reason, additional difficulties in meeting the driving boundary conditions on public roads outside Europe have to be considered. The European type approval process has been constantly redesigned to model on North American standards, especially after the so called ‘Dieselgate’ scandal concerning diesel passenger cars (Coglianese, Nash, 2017, pp. 33-90). Regulation 2016/427/EU (O.J. L 82, 31. 3. 2016, p. 1-98) imposing real driving emissions tests (RDE) and portable

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emissions measurement system (PEMS) was probably the biggest change to emission rules for light duty vehicles since regulations of this sort were introduced. Studies have shown, with particular emphasis on diesel vehicles, that regulations of this sort should reduce NOx emissions and therefore improve urban air quality (Bodisco, Zare 2019, p. 3). However, Framework Directive for the Approval of Motor Vehicles (2007/46/EC, O.J. L 263, 9. 10. 2007, p. 1) and those preceding it, were primarily intended to facilitate the placement on the market vehicles originating in different member states. In the absence of such harmonising legislation, a fragmentation of the internal market due to disparities in the technical requirements and controls governing the sale of vehicles would persisted. The whole process of harmonising standards has been demanding, since Commission has to take into consideration environmental law, specifically air quality standards. It is not made easier by the fact that both air quality and the transport industry are represented by two different EU Commission departments, i.e. one for climate and one for the industry. European Parliament in its Report on the inquiry into emission measurements in the automotive sector left no doubts that member states should take a more active part in the EU type-approval framework amendments and application (European Parliament, 2017). Large discrepancies between the NOx emissions of most Euro 3-6 diesel cars measured with the NEDC laboratory test, which meet the legal emission limit, and their NOx emissions measured in real driving conditions, which exceed the limit, affect the vast majority of diesel cars. No doubt, they were not limited only to the Volkswagen vehicles equipped with prohibited defeat devices. These disparities contribute to a large extent, to infringements of Air Quality Directive by several member states. The existence of the divergences, and their significant negative impact on attaining air quality objectives, in particular with regard to urban areas, has been known to the Commission, to the responsible member states’ authorities and to many other stakeholders since at least 2004–2005 when reg. 715/2007/EC was being prepared. The discrepancies have been confirmed by a large number of studies done by the Joint Research Centre (JRC) since 2010/2011 and other researchers since 2004. In the light of the criticism of the EU regulatory frameworks concerning both automotive emission and climate policies (Bodisco, Zare, 2019, Hooftman, Messagie, van Mierlo, Coosemans, 2018, Kurien, Srivastava, Molere, 2020, Oberthür, 2019) devolution of responsibilities seems to be very reasonable. Similarly, in the New European Green Deal (COM(2019) 640 final) the Commission drew on the lessons learnt from the evaluation of the current air quality legislation (SWD(2019) 427 final). It proposed to strengthen provisions on monitoring, modelling and air quality plans to help local authorities to achieve cleaner air in their municipalities (European Commission, 2019, p. 17). 2. Dispute over authority to limit vehicle traffic The heading case serves as a perfect picture of majority of legal conflicts associated with the application air quality standards and automotive sector type approval rules. The most relevant facts of the commented case were as follows. The cities of Paris, Brussels and Madrid have, under their environmental and health protection powers, adopted measures, in line with Euro 6 standard, to restrict vehicle traffic in order to combat

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the proven air pollution in their municipalities. Subsequently, these cities challenged regulation 2016/646/EU (O.J. L 109, 26. 4. 2016, p. 1) to contest the introduction of new quantitative limits on NOx emissions which were more relaxed than those from Euro 6 standard limits previously adopted by the Parliament and the Council (laid down in annex I to reg. 715/2007/EC, O.J. L 171, 29. 6. 2007, p. 1). Those new limits, which were the result of the determination of the pollutant conformity factor (CF) in the challenged regulation, deprived the Euro 6 standard limits of their practical effect. Commission stated that the CF pollutant conformity factors applied in the challenged regulation were justified by the discrepancies observed between the data from the RDE tests and the data from the laboratory tests (T-339/16, T-352/16, T-391/16, para 89). Commission’s arguments seemed to be reasonable, however, relaxing the limits applied for the RDE tests actually amounted to abandoning the Euro 6 limits that usually serve as a basic criterion for low emission zones entrance conditions. Since the case law discussed in this work, apparently deal with a dispute over authority in relation to regulating the circulation of vehicles, this paper considers two fundamental questions. Firstly, whether EU law restricts the powers of the member states’ local authorities to limit vehicle traffic in order to combat the proven air pollution in their cities? Secondly, whether domestic traffic restrictions relating to the level of vehicle pollutants, (e.g. low emission zones, pedestrian zones or ‘car-free days’) adopted by the public authorities and applied to vehicles compliant with the most recent EU standards and limits (e.g. the challenged CF pollutant conformity factor), run counter to the requirements of EU law? To put it differently, whether local authorities violate EU law if they apply EU automotive emission control standards only instructionally, but at the same time they fulfil all their ambient air quality management obligations? The methodology applied to this legal research is based on the legal dogmatic analysis of the relevant provisions of EU law and official documents. Problem solution demonstrates considerable proximity to the position of the General Court of the EU in joined cases: T-339/16, T-352/16, T-391/16 Ville de Paris, Bruxelles, Madrid v. Commission, however it was enriched with additional critical references both personal and cited from literature relating to EU environmental law studies. 2.1 Two paradigms Researching in order to address the above mentioned problems entails the application of two paradigms. The first one is the subsidiarity principle as a general principle of EU law governing the division of powers between the EU and its member states. The second paradigm, called harmonisation level helps to assess – how far may domestic legislation intervene in the areas of shared powers that has already been covered by EU law? In this specific case, it would be fruitful to assess – to what extend has air quality protection been harmonized in environmental law, and similarly – whether the homologation of vehicles in automotive sector has been covered by fully harmonized rules of internal market law.

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2.1.1 Subsidiarity principle Article 5 TFEU (Treaty on the Functioning of the European Union, O.J. C 326, 26. 10. 2012, p. 47) stipulates general principles for the relationship of the competences between the European Union and the member states. These include the principle of conferral of limited powers, and the principles of subsidiarity and proportionality which are relevant for making use of competences already conferred to the Union. The principle of subsidiarity is meant to establish a legally binding limitation for implementing powers in favour of possible activities of the member states. Subsidiarity does not restrict the general provisions and aims of the Treaty. The general rules concerning the relationship between domestic law and Union law as developed by the CJEU (Court of Justice of the EU) are not prejudiced. The principle of subsidiarity can be applied only in the areas of so-called shared or concurring competences, in line with Articles 4-5 TFEU or in the fields of Union powers for supporting, coordinating or supplementing measures under Article 6 TFEU (Geiger, Khan, Kotzur, 2015, p. 35-37). Within the area of shared powers if there is no full harmonisation member states preserve their legislative powers, in the light of Article 114 TFEU they are called concurring competences. That means that EU legislation based on Article 114 TFEU in this area has to fulfil subsidiarity test (Wróbel, 2012, p. 561-565). 2.1.2 Harmonisation level Harmonisation or approximation of legal provisions of the member states means setting up the standards defined by the EU. Subject to harmonisation according to Article 114 TFEU are laws, regulations and administrative provisions of the member states concerning the establishment and functioning of the internal market. In line with Article 26 (2) TFEU internal market ‘comprises an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaty’. The essential objective is the creation of equal competitive conditions. The reference to internal market opens an extremely broad scope of application for Article 114 TFEU, however it must not undermine the principles of subsidiarity and conferred powers (Geiger, Khan, Kotzur, 2015, p. 559). It was held in the judgment Germany v Parliament and Council (C-376/98, para 83), that this provision did not vest in the European Union legislature a general power to regulate the internal market. The power derived from Article 114 TFEU is restricted to situations in which it is in fact necessary to remedy obstacles to the free movement of goods, services and capital concerned between member states (C-376/98, para 84-85). The above mentioned Framework Directive for the Approval of Motor Vehicles, like all past and present European legislation on motor vehicles type approval, has as its legal basis Article 114 TFEU or the equivalent articles of the Treaties which preceded the TFEU. Such a legal basis does not allow interference in transport or environmental policy, and this directive is essentially intended to facilitate the placement on the market, in each member state of imported cars to prevent a fragmentation of the internal market. The usual type approval process for a new vehicle looks like as follows: the manufacturer submits a prototype to the competent authorities, which must ensure that that prototype satisfies the conditions laid down in Annex IV to dir.

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2007/46/EC, in particular those which follow from reg. 715/2007/EC in relation to pollutant emissions. Once the ‘type’ is approved, the manufacturer begins its industrial production and every vehicle complying with the ‘type’ may be sold within the whole internal market territory (T-339/16, T-352/16 and T-391/16, para 92). Therefore, one cannot assume that the scope of that legislation goes further. In particular, it is by no means intended to limit the policing powers of the member states’ authorities in relation to the circulation of vehicles once those vehicles are being used by their drivers (T-339/16, T-352/16 and T-391/16, para 44). 3.1 Member states’ regulatory autonomy to limit vehicle traffic Air Quality Directive affords the member states complete freedom to adopt air pollution abatement measures. In particular, the short-term action plans for which that directive provides may contain measures relating to the circulation of motor vehicles (Bukowski, 2017, p. 52). That means that Framework Directive for the Approval of Motor Vehicles and its secondary ‘regulatory acts’ cannot restrict the actions of the authorities of the member states in such matters (T-339/16, T-352/16 and T-391/16, para 49). The introduction of traffic legislation falls within the powers derived from national law. Besides, as already has been stated, the local public authorities may also enact such legislation in order to comply with their obligations under Air Quality Directive, even though, as the case may be, that domestic legislation uses the Euro standards in order to determine the scope of the restrictions which it lays down (T- 339/16, T-352/16 and T-391/16, para 55). In the commented case, the applicant cities fulfilling their shared powers in the field of environmental protection had already adopted measures to improve air quality in their municipalities. Paris introduced, by two successive decrees of the Mayor and the Police Commissioner, a restricted traffic area corresponding to the entirety of its ‘intra- muros’ territory. The circulation of vehicles not complying with at least a given Euro standard was prohibited for the first time on 1 Sept. 2015 and then on 1 July 2017, from 8.00 to 20.00 on weekdays, save in specific circumstances. Since 2020 the minimum standard to be met in order to be able to drive a vehicle in Paris has been the Euro 5 standard. Above and beyond, the ‘Climate-Air-Energy Plan’ (Plan Climat Air Energie territoriale, PCAET, 2018) of that city provides for the prohibition of the circulation of diesel vehicles in 2024 and of petrol vehicles in 2030. Brussels created an extensive pedestrian zone in its centre and introduced ‘car-free days’. In 2015 and 2016 Madrid imposed (by decrees of the Delegate of the Sector of Government responsible for the Environment and Mobility) traffic restrictions during periods of high pollution, as provided for in the 2011–2015 Air Quality Plan (Plan de Calidad del Aire de la Ciudad de Madrid 2011–2015 de 2012) and the measurement protocol adopted by the city, which is to be initiated during periods of high nitrogen dioxide pollution. It is worth mentioning that the local authorities fulfil their Treaty based obligations under significant pressure, since the Commission took actions against these cities in line with Article 258 TFEU for failing to comply with Air Quality Directive, 3. Problem solution

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including in relation to the level of oxides of nitrogen (IP/18/3450). It is ironic that the Commission sued member states for low air quality standards and at the same time, the municipalities sued Commission (by challenging its regulation) for lowering automotive emission standards (!). However, the sphere of autonomy enjoyed by national authorities is indeed, in the light of Article 4(3) of Directive for the Approval of Motor Vehicles significantly circumscribed. Since this provision prevents the local public authorities from restricting, on grounds based on the level of pollutant emissions, the circulation of vehicles which satisfy the relevant European requirements in force. The above mentioned provision states that member states are not to ‘prohibit, restrict or impede the … circulation on the road of vehicles … on grounds related to aspects of their construction and functioning covered by this Directive, if they satisfy the requirements of the latter’ (T-339/16, T-352/16 and T-391/16, para 58). This argument may be challenged, because it has already been demonstrated above that harmonizing legislation concerns only type approval for new types of vehicles and the entry into service of new vehicles, and not the circulation of vehicles already in service – ‘on the road’. The application of subsidiarity principle, as modelled above with the consideration that there has been no full harmonization in the air quality law, leads to a partial conclusion that European Commission and municipalities may and should act independently. However, complete harmonization resulting from the Framework Directive for the Approval of Motor Vehicles entails that the local public authorities cannot oppose the ordinarily intended use of a vehicle that met the requirements laid down in the harmonizing arrangements, otherwise they would undermine the practical effect of homologation process (T-339/16, T-352/16 and T-391/16, para 69). All in all, municipalities are free to regulate air quality so long as their measures are not contradictory to the rules facilitating the sale of vehicles, in broad sense – free movement of goods. As ever, the Treaty limits the powers, including member states’ autonomy. The next partial conclusion, that opens the second question considering possible violation of EU law, is that as long as the local authorities actions are not discriminatory they are in line with free movement of goods and conform with EU law. 3.2 Possible violation of EU law Domestic laws governing traffic restrictions which cover all or a category of vehicles defined in relation to objective criteria, e.g. vehicles over 3.5 tonnes generally, would not generate conflict with Framework Directive for the Approval of Motor Vehicles, because the scope of such laws would not overlap with the scope of this directive. Therefore, most domestic legislation pertaining to the highway code or adopted under that code and measures restricting circulation which cover all vehicles, such as those which establish pedestrian zones, ‘car-free days’ or alternating traffic arrangements in the event of a peak in pollution, cannot be affected by EU homologation laws. Only domestic legislation taking into account aspects related to the construction or functioning of the vehicles covered by provisions of that directive, or its ‘regulatory acts’ could therefore fall foul of that provision.

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Likewise, a local public authority could currently, without infringing the Framework Directive for the Approval of Motor Vehicles impose restrictions on circulation based on the level of pollutant emissions in respect of vehicles complying only with the Euro 5 standard, since that standard and the previous Euro standards are no longer in force for the purposes of the application of that directive. The Euro 6 standard has applied since 1 Sept. 2014 for the homologation of new passenger vehicles and since 1 Sept. 2015 for the registration or the authorisation to sell or put into service those vehicles. To support this argument one can cite the decision Commission v Austria (C-28/09) of 2011 where the CJEU stated that, a member state protecting air quality, might perfectly prohibit the circulation of lorries falling into, an earlier Euro class, that the current one. Whereas, imposing a sectoral traffic prohibition applicable to lorries regardless of Euro class into which they fell, would be contrary to the rules of the Treaty on the free movement of goods (T-339/16, T-352/16 and T-391/16, paras 52-53). To enhance trade, competitiveness and free movement of vehicles automotive industry implements an internal market regulatory framework of technical requirements. For this reason, the interpretation and application of the Framework Directive for the Approval of Motor Vehicles has to guarantee that a new owner of a new motor vehicle compliant with the homologation requirements is entitled, not only to purchase, register, put it into service and to get behind the wheel, but also to be certain of his future entrance to low emission zones in Paris, Madrid or Brussels. The practical effect of that directive would be undermined if the placement on the market of the vehicles potentially concerned would be impeded by the fear that it may not be possible to use them normally. For example, if a driver using a vehicle to travel to Paris, Brussels or Madrid were to anticipate that these cities were going to prohibit, entirely or partly, the circulation of vehicles in their territory which do not comply with the limits of the Euro 6 standard during RDE tests, even if those vehicles do comply with the NTE values, such a driver might opt not to buy such a new petrol or diesel motor vehicle (T-339/16, T-352/16 and T-391/16, para 67). To conclude, traffic restrictions relating to the level of vehicle pollutants, adopted by the member states’ public authorities run counter to EU law, in so far as they apply to vehicles compliant with the most recent homologation standards and limits. However, the cities of Paris, Brussels and Madrid in the commented case successfully proved that they are entitled to challenge too lenient NOx emission limits determined by the Commission for RDE tests. Since they could not include cars which had successfully undergone those excessively liberal tests within the limits of domestic traffic-restriction measures i.e. low emission zones. They argued that the challenged regulation was adopted to constitute a ‘licence to pollute’ or a decline in the level of environmental protection. Commission, on the contrary, claimed that it bolstered the RDE testing system and the legal arsenal to combat air pollution by preventing the homologation of vehicles equipped with prohibited defeat devices (T-339/16, T-352/16 and T-391/16, para 104).

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4. Conclusion This research deals with a variety of legal instruments of municipal supervision over automobile emission standards. The final conclusion is composed of a few partial findings, not necessarily perfectly complimentary, since the issue is very interdisciplinary and full of conflicting interests of environment itself, municipalities and business sector. Having considered purely legal aspects, one can clearly notice the two overlapping areas of EU law – approval and market surveillance and air quality management that have to be applied in conformity to guarantee effet utile of the EU law system. There would be a great problem if, in the name of combating air pollution, a number of local authorities were to introduce low emission zones based on assessment criteria incompatible with the EU homologation standards. Disputes over authority within the areas of shared powers have to be examined ad casum by means of subsidiarity principle and having considered the harmonisation level with the clarity as to the limits of powers circumscribed by the Treaty. Regarding the EU judicial environmental protection standards, this case is a very promising development, since it shows that an act of the European Commission is of direct concern to municipal authority if it affects its own legislative powers, for instance in relation to regulating the circulation of vehicles and not just its power to adopt individual decisions within a pre-defined framework (T-339/16, T-352/16 and T-391/16, para 50). Taking into account all the difficulties faced by EU citizens and non-governmental environmental organisations (NGOs) in satisfying the standing requirements for an action for annulment (Article 263 TFEU), it is a great achievement. This decision may allow cities to become champions for environmental protection where the Commission fails to impose stringent EU measures (Moules, 2019, p. 164). References [1] Bodisco, T., Zare A. (2019). Practicalities and Driving Dynamics of a Real Driving Emissions (RDE) Euro 6 Regulation Homologation Test. Energies, vol. 12, pp. 1-19. [2] Bukowski, Z. (2017). Prawne uwarunkowania ochrony przed smogiem pochodzacym z emisji ze źródeł liniowych na przykładzie transportu drogowego. Europejski Przegląd Sądowy , vol. 7, pp. 50-57. [3] Coglianese, C., Nash, J. (2017). The law of the test: Performance-based regulation and diesel emissions control. Yale Journal on Regulation , vol. 34, iss. 1, pp. 33-90. [4] European Commission. (2019). Commission Staff Working Document Fitness Check of the Ambient Air Quality Directives Directive 2004/107/EC relating to arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air and Directive 2008/50/EC on ambient air quality and cleaner air for Europe. SWD(2019) 427 final [online]. [cit. 2020-02-26]. Available at: https://ec.europa. eu/environment/air/pdf/ambient_air_quality_directives_fitness_check.pdf [5] European Commission. (2019). Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic

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and Social Committee and the Committee of the Regions, The European Green Deal. Brussels, 11. 12. 2019 COM(2019) 640 final [online]. [cit. 2020-02-26]. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52019 DC0640&from=EN [6] European Environment Agency. (2020). Flexibilities in the NEDC test approval procedure [online]. [cit. 2020-03-04]. Available at: https://www.eea.europa.eu/ media/infographics/flexibilities-in-the-nedc-test/view [7] European Parliament (2017). Report on the inquiry into emission measurements in the automotive sector (2016/2215(INI)) [online]. [cit. 2020-02-26]. Available at: https://www.europarl.europa.eu/doceo/document/A-8-2017-0049_EN.html [8] Gudmundsson, H., Schippl, J., Leiren, M. D., Sørensen, C. H., Brand R., Anderton, K., Reichenbach M.. (2015). A roadmap for the EU White Paper goal on urban transport. Urban Transport XXI, pp. 53-64. [9] Hooftman, N., Messagie M., Van Mierlo J., Coosemans T. (2018). A review of the European passenger car regulations – Real driving emissions vs local air quality. Renewable and Sustainable Energy Reviews , vol. 86, pp. 1-21. [10] Geiger, R., Khan, D-E., Kotzur,M., (eds). (2015). European Union Treaties. Treaty on European Union. Treaty on the Functioning of the European Union. München: C.H. BECK. [11] Kurien, C., Srivastava, A.K., Molere, E. (2020). Emission control strategies for automotive engines with scope for deployment of solar based e-vehicle charging infrastructure. Environmental Progress and Sustainable Energy , vol. 39, pp. 1-9. [12] Moules, R. (2019). Significant EU Environmental Cases: 2018. Journal of Environmental Law , vol. 31, iss. 1, pp. 163-173. [13] Oberthür, S. (2019) Hard or Soft Governance? The EU’s Climate and Energy Policy Framework for 2030. Politics and Governance , vol. 7, iss. 1, pp. 17-27. [14] Purwadi, A., Suhandi, S., Enggarsasi U. (2020). Urban Air Pollution Control Caused by Exhaust Gas Emissions in Developing Country Cities in Public Policy Law Perspective. International Journal of Energy Economics and Policy , vol. 10, iss. 1, pp. 31-36. [15]Wróbel, A., (ed.) (2012). Traktat o funkcjonowaniu Unii Europejskiej. T. II. Warszawa: LEX a Wolters Kluwer business.

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International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

Development of Organizational Structure Model of Motor Vehicle Production Enterprises Aleksandr Bobkov ¹ , Igor Denisov ² , Oxana Kuchmaeva ³ , Emil Velinov 4 Plekhanov Russian University of Economics 1, 2 Department of the theory of management and business technologies 36 Stremyanny Lane, Moscow, 117997 Russian Federation Moscow State University 3 Faculty of Economics, Department of the population, MSU, Faculty of Economics, GSP-1, 1-46 Leninskiye Gory, Moscow, 119991 Russian Federation ŠKODA AUTO University4 Na Karmeli 1457, Mladá Boleslav, 293 01 Czech Republic e-mail: a.l.bobkov@gmail.com ¹, denisov.id@gmail.com ², kuchmaeva@yandex.ru ³, emil.velinov@savs.cz 4 Abstract The article considers the issues of verification and adaptation of the model of organizational structure evolution developed earlier by the authors as applied to the enterprises producing motor vehicles. A cluster analysis was chosen as a research method to break down the original data set into groups. The study selected 337 motor vehicle, trailer and semi-trailer manufacturers as well as other transport equipment manufacturers located in the Czech Republic from the Albertina Gold Edition database. The model proposed by the authors for the evolution of the organizational structure of industrial enterprises was generally confirmed. The authors also compared the obtained results with the results of verification of the developed model in relation to other industries. Keywords: development, organizational structure, model, production enterprise JEL Classification: D22, L22, M21 1. Introduction Nowadays the tendencies of development of industrial enterprises suppose both the creation of enterprises oriented at the full cycle and the enterprises using the segmented production process. The latter is more typical for industries with long production chains, which can also include enterprises producing motor vehicles. In the scientific literature, segmented enterprises are divided into horizontally segmented and vertically segmented enterprises (Wildemann, 1992). Essentially, such typification of the organization of the production process at enterprises (horizontal organizational structure and vertical organizational structure) was taken by the authors as a basis for conducting research to identify patterns of organizational development. This approach was tested by the authors in revealing the regularities of organizational development of

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International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

commercial organizations in various sectors of the economy (Denisov, 2008). Especially the impacts on process models used in the development as well as on the organizational structure and collaboration of motor manufacturers and suppliers have been taken into account. The modern organizational structures, which are quite frequent nowadays, are often segmented by components. Challenges in collaboration between the development areas are the consequence, since the development of self-autonomous vehicles involves strong cross-functional dependencies (Pfeffer et al., 2019). Within the framework of earlier researches, the authors hypothesized that two basic types of organizational structures – sequential and parallel – replace each other in the process of growth as commercial organizations develop. That is, the authors proceed from the dialectical approach to the development of commercial organizations, according to which the development of commercial organizations can be described by spiral development: by transition from sequential to parallel organizational structures and then, at a new stage of development – again to sequential. This hypothesis has been proved for commercial organizations operating in the service sector in the Czech Republic – retail trade and educational activities (Bobkov et al., 2017, Bobkov et al., 2018, Bobkov et al., 2019). In this article the authors attempt to prove the hypothesis for industrial enterprises in the Czech Republic. As object of researches the enterprises on manufacture of motor vehicles have been chosen. The selection of these companies is determined by the fact that these companies belong to the industrial production sector and the high level of development of this sector in the Czech Republic (Velinov & Beranek, 2018). A total of 337 companies producing motor vehicles, trailers and semi-trailers as well as companies producing other transport equipment from the Albertina Gold Edition database (companies Bisnode Česká republika, a.s.) were selected for the analysis. 2. Problem Formulation and Methodology Quantitative research to identify patterns of organizational development was previously conducted by various researchers. However, Hanks, S.H., Watson, C.J., Jansen, E. and Chandler, G.N. were the closest from the point of view of the research methodology used. (Hanks et al., 1993) and G. Shirokova (Shirokova, 2008). The results of these studies and their comparison with the research carried out by the authors are described in sufficient detail in a previous paper by the authors (Bobkov et al., 2019). If we briefly describe the approaches used and the results of the research described in the works (Hanks et al., 1993, Shirokova, 2008), the selected research methodology included such stages as gathering information about the companies under research, identifying variables characterizing the structure of the organization, conducting cluster analysis by the Ward method, and interpreting the results obtained. In the opinion of the researchers themselves, the results obtained did not allow them to come to certain conclusions about the sequence of stages of development of organizations classified in different clusters. As the authors themselves pointed out, they made an attempt to empirically identify the stages of development of organizations in accordance with their classification in a cluster and then propose a model of their organizational development.

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International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

Taking into account the results of the previous studies described above, the authors of the article took a different approach. On the basis of the analysis of the concepts of organizational structures, two basic types of organizational structures were identified and using cluster analysis, an attempt was made to prove their consistent change in the process of organizational development. The proposed approach was to simplify the typification of organizational structures and to develop on its basis a theoretical model of the development of organizational structure of industrial enterprises. When selecting the initial information, the authors abandoned the use of data from the questionnaire of managers of organizations in favor of using a statistical database. This approach allowed to significantly increase the number of organizations in the sample in comparison with the studies described in the literature (Hanks et al., 1993, Shirokova, 2008, Shirokova et al., 2016), as well as to conduct studies separately for organizations of different branches of economy. The results show that the increase in the number of organizations in the sample has had a positive impact on the research results obtained, which can be seen by comparing the research conducted by the authors in two sectors of the economy (Bobkov et al., 2017, Bobkov et al., 2018). Another significant difference proposed by the authors was the use of both structural variables and indicators of financial and economic activity of companies in the course of research, which allowed for a more accurate and unambiguous interpretation of the results obtained and assign the organizations under research to different levels of their organizational development. As it was mentioned above, to confirm the theoretical model of evolution of the organizational structure of industrial enterprises put forward by the authors, the cluster analysis was used, which was carried out using the IBM SPSS program. Besides, for specification of the received results the method of construction of a tree of the purposes was used. The source data was obtained from the Albertina Gold Edition database (company Bisnode Česká republika, a.s.). Initially, 337 motor vehicle production companies in the Czech Republic were selected for the research based on their business results for the calendar year 2016 (from 01. 01. 2016 to 31. 12. 2016). The selection of the year was based on the completeness of the information. According to the results of primary processing by the authors, 11 enterprises were sifted due to the lack of indicators necessary for the analysis. The financial indicators were calculated in the original currency – Czech CZK. 3. Problem Solution When constructing the theoretical model of industrial enterprises, the authors proceeded from the assumption that in the process of their development and improvement of operational activity in a certain period of time the boundary of existing technological restrictions is reached, which determines the limit of productivity growth. In the scientific literature such approaches are described in works on the concept of the S-curve (Foster, 1986; Christensen, 2013) and models of sustainable growth (Rappaport, 1986; Van Horne, 2008). Achieving these limits of technological constraints is a trigger that triggers the process of transforming the organizational structure to ensure further growth of the enterprise.

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