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The business car industry has a duty to wield its considerable financial clout to force manufacturers into tackling emissions with more urgency, writes Rupert Saunders
Carbon emissions and climate change are now the single most important issue for the automotive industry, say 74% of senior executives questioned by the SMMT.
So what, I hear you cry? Carbon emissions have been top of our agenda since 2002 when the Government changed the BIK tax system over to a CO2-based rating. Has it taken this long for the carmakers to wake up? And what about the 26% who apparently don't see emissions as the most important issue?
We have to ask ourselves whether 2007 was the year when carmakers finally woke up to their environmental responsibilities or whether their stance is still a PR smokescreen.
I, for one (and I know I was not alone), came back from the Frankfurt motor show in September deeply cynical about the motives behind many of the declarations of Paulian conversion to the cause. Most of the so-called 'advanced technologies' such as stop-start, hybrid powertrains and biofuels have been available for years: why the sudden rush to reveal them now?
This is important - and not just on a macro, save-the-planet level. At the micro level, any genuine attempt by carmakers to further reduce CO2 will cut personal taxation for business car drivers and, by lowering fuel consumption, shrink running costs for businesses.
One outstanding issue is the lack of a common tax policy. One volume car producer told the SMMT: "As long as taxation measures are completely inconsistent, market to market, it is next to impossible for manufacturers to optimise investment in green technology."
The UK is ahead of the game here, and much will change when Germany introduces a CO2-based tax system for all cars, planned for 1 January 2009.
“At the micro level, any genuine attempt by carmakers to further reduce CO2 will cut personal taxation for business car drivers and, by lowering fuel consumption, shrink running costs for businesses.” |
Rupert Saunders |
In 2006, German carmakers had the highest fleet-average emissions in Europe, at 173g/km, according to the pressure group Transport and Environment. DaimlerChrysler topped the league of 'bad boys' with 188g/km, followed by BMW at 184g/km. The most environmentally friendly company were PSA Peugeot-Citroen at 142g/km.
At least BMW seems to be doing something about it. The introduction of Efficient Dynamics technology has already had a significant effect on CO2 output.
According to the company, fleet average emissions in the UK pre-September were 184g/km; since then they have dropped to 158g/km. BMW UK boss, Jim O'Donnell, says that 42% of his sales next year will be below the 140g/km threshold.
Carmakers believe they are "leading consumer choice" rather than responding to it. When Honda goes out to make a business car presentation, they always include their environment manager in the pitch team and anticipate questions on their environmental performance.
I believe sincerely the business car industry has a role to play here. As major customers, we can lead the market and hasten the change by voting with our company chequebooks. And remember, in the short and medium term, it will save you money.
Have a great Christmas break.
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