Press release

June 25, 2007

CO2 tax to protect the climate

VDA President calls for emissions-based vehicle tax

Würzburg, June 26, 2007

VDA President Matthias Wissmann believes that the German automotive industry is well prepared for a change in vehicle tax based on CO2 emissions. Customers could purchase economical, CO2-friendly vehicles from German manufacturers in all vehicle classes. Wissmann explained this in an interview with the industry magazine "kfz-betrieb", which will be published in its latest issue no. 26 on June 28.

German manufacturers are committed to the fact that environmental and climate protection requires full commitment, said Wissmann. Even before the current CO2 debate, they had already reduced the fuel consumption of their new vehicles by 25 percent since the 1990s. However, any new CO2 emissions target must apply on average to the entire fleet in Europe. "This is the only way to ensure that every manufacturer strives for further reductions in all their vehicle segments."

Wissmann attributes the current reluctance of customers to buy cars to the lack of reliable framework conditions for motorists. After the increase in the cost of driving due to tax increases and reduced commuter allowances, consumers now expect clear statements on the taxation of cars. Wissmann is open to a tax based on CO2 emissions. It would be "the best environmental and economic program".

For the CO2-based vehicle tax, every gram of CO2 must be taxed equally. "Double CO2 emissions would then mean double vehicle tax and halved CO2 emissions would mean halved vehicle tax," Wissmann told "kfz-betrieb". In order for the new tax to achieve its economic and environmental goals, the new tax should not only be applied to new vehicles, but to the entire vehicle population.

"kfz-betrieb" is a trade magazine published by Vogel Auto Medien, Würzburg. The most widely read trade magazine in the automotive industry celebrated its 95th anniversary in 2005 and is the official organ of the German Motor Trade (ZDK), the professional lobby for over 40,000 car dealerships and workshops.

If you have any questions, please contact

Andreas Grimm

News Department

Editorial office "kfz-betrieb" weekly journal & online

Vogel Auto Media

97064 Würzburg

Phone +49 931 418-24 95

Fax +49 931 418-20 56

E-mail: andreas_grimm@vogel-automedien.de

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Gunther Schunk

Corporate Communications
Vogel Communications Group GmbH & Co. KG

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E-mail: info@vogel.de

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