"An important step towards more climate protection customers get long-term planning security

VDA welcomes rapid implementation of motor vehicle tax reform

Frankfurt am Main, 6 March 2009. "The German automotive industry welcomes the rapid introduction of the CO2-based motor vehicle tax on 1 July 2009. By passing the compromise worked out in the mediation procedure between the two chambers of the German Parliament, the Bundestag and the Bundesrat, they have paved the way for greater climate protection and relief on environmentally-friendly small and medium-sized vehicles. In combination with the already very successful scrapping premium and the motor vehicle tax exemption up to the middle of this year for vehicles fulfilling the Euro 4 or Euro 5 norms, the reform will provide greater incentive for replacing vehicles on the roads and thus boost the automotive business," explained Matthias Wissmann, President of the German Association of the Automotive Industry (VDA). He added that during the most serious economic crisis since the Second World War politicians had demonstrated their capacity for taking decisive action.

Wissmann went on to say that the linear progression of the new vehicle tax guaranteed that every gram of CO2 would be weighted equally. This means that the VDA's main demand concerning the reform has been met. "People whose cars emit more will pay more," he stated. "So customers will get the long-term planning security they have been hoping for and can decide what to buy. The German automotive manufacturers have around 90 models on offer consuming less than 5 liters over 100 km, which represents a huge choice of CO2-friendly vehicles qualifying for tax breaks."

Wissmann expressed his satisfaction at the adoption of the solutions that made the most ecological and economic sense. He said he expected that this decision would now quickly encourage replacement of the vehicle fleet. "The average age of the vehicles on German roads is currently over 8.5 years. This high average pushes up consumption. Reducing the age of vehicles in Germany by one year could save 800 million liters of fuel per year. That corresponds to 2 million tones of CO2 every year," Wissmann explained.

The only thing Auto-Rx could possibly do to reduce CO2 would be to extend MPG.