VDA welcomes planned boosts for car sales and climate protection
Wissmann expects strong support for domestic auto business
Frankfurt am Main/Berlin, 13 January 2009. "The Grand Coalition's package of agreed measures is sending out the right signal at the right time. The combination of guarantees for companies, reforming the motor-vehicle tax and an "environmental bonus" can now strongly support development on the domestic passenger car market and help companies master the difficult economic situation. Together with the exemption from motor-vehicle tax for Euro 4 and Euro 5 vehicles that has already been passed, the time has now come for consumers to take advantage of the tax breaks and keen automobile prices," declared Matthias Wissmann, President of the German Association of the Automotive Industry (VDA). "The measures can contribute not only to safeguarding jobs at manufacturers and suppliers, but also to achieving the goals of climate and environmental protection. The Grand Coalition's decisions clearly demonstrate its capability for targeted action."
"Basing motor-vehicle tax on the vehicle's CO2 output from 1 July 2009 onwards means that the Coalition is not only putting a new regulation in place that follows on seamlessly from the tax exemption ending this summer for environmentally friendly Euro 4 and Euro 5 vehicles, but is also creating long-term reliability for customers to make plans," Wissmann said. He added that, together with the "environmental bonus" for purchasing an environmentally friendly vehicle when simultaneously scrapping one at least nine years old, these measures could contribute to the rapid replacement of the vehicles on the roads and were therefore also part of a smart climate protection policy. "If we reduce the average age of the vehicle fleet (almost 9 years) by one year, that alone will save two million tonnes of CO2. At the same time the cost savings on consumption will bring relief above all to consumers at the pumps," Wissmann stressed, adding, "Customers can use the 2,500 euro environmental bonus that comes with scrapping an old vehicle as a down payment on a new or nearly-new car. This can give a real boost to the automotive business."
According to the VDA president, above all the sales of German brands could benefit from the measures in the government package. "Today we are developing the most efficient vehicles in all segments and have the most models on the market meeting the Euro 4 and Euro 5 standards."
Wissmann also emphasized the establishment of an additional corporate loan program. "The Coalition's agreed program of loans and guarantees creates an urgently needed way out of the looming credit crunch and ensures the essential liquidity," the VDA president said. He went on to say that the innovative small and medium-sized automotive suppliers in particular can benefit from this. "With their healthy structures, their successful business models and above all their strong drive for innovation, the suppliers can now invest in the future of Germany as an industrial location using the state guarantees, and thus help to secure jobs and overcome the crisis." The VDA president also welcomed the planned increase in investments in the traffic infrastructure. "Removing blockages to investment will strengthen Germany's position. Improving the roads and avoiding congestion will also contribute to reducing the CO2 output from the traffic sector," Wissmann added.