A ´green´ 2007 - good and bad news for manufacturers and buyers

The good news in 2007 was that most carmakers embraced the call to reduce CO2 emissions for their latest models and to lower the carbon footprint for their manufacturing processes.

It was also generally good news for UK new car sales that look as though they are heading for 2.4 million mark despite the credit crunch that has hit consumers. 2007 should be a record year for diesel powered new car sales that are expected to account for 40 per cent of registrations.

• BMW has their award winning Efficient Dynamics programme of lighter body panels and components, more fuel-efficient yet more powerful engines and clever fuel saving transmissions for the majority of models in their range.

• VW introduced their first BlueMotion low CO2 models, Ford announced their Econetic technology, SEAT has Ecomotive models and Mercedes-Benz have their BlueTec plans.

• Honda and Toyota are selling more fuel saving hybrid models and Lexus is using hybrid technology to minimise emissions for their powerful luxury saloons and SUVs.

• Meanwhile manufacturers such as PSA Peugeot Citroen just go on making their engines more fuel efficient as a matter of course and ‘greener’ biofuels and hydrogen power have all received media coverage.

European Union emissions targets

The bad news was that 2007 ended with a sting in the tail for motor manufacturers and customers because the EU has indicated that from 2012 the majority of models have to achieve 130g/km exhaust emissions or face stiff fines. PSA Peugeot Citroen has the smallest reductions to make to meet the 2012 target at 16g/km.

Cars which do not meet that 2012 level are likely to become more expensive - £600 to £3,000 is being mooted - because the manufacturers will pass on much of the cost of these fines from the EU to customers via the price of the car.

The British Government however is trying to get exemptions from the new target for UK makers of specialist models that sell in very small numbers - Morgan for example.

More bad news for motor manufacturers was the result of a survey issued just before Christmas that showed that whilst European motorists want more fuel-efficient cars, they are not prepared to pay a premium for them.

The result of the questionnaire by Harris Interactive suggests carmakers will have trouble selling the next generation of low emission models demanded by the EU at higher prices.

Revised London Congestion Charge

Even more bad news hit the headlines just before Christmas when rumours started that Transport for London might now not go with their ‘proposed’ plan to allow cars with less than 120g/km of CO2 emissions to be exempt from the London Congestion Charge from February 2008.

The problem seems to be that there are now far more models (over 600) which meet this level than the sub 50 there were when Ken Livingstone and his tax gatherers proposed the new level. Less people would end up paying the Congestion Tax because there is now a wider range of cars available.

The proposed London Congestion Charge exemption issue for 2008 was big marketing news for manufacturers as most volume carmakers have been heavily promoting the low CO2 credentials, less than 120g/km, for many of their new models all through 2007 in readiness for February 2008.

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