... Submission on the issue of VRT and CO2 ...• Submission on the issue of VRT and CO2 »»BMW Group Ireland believes the most equitable and effective way of dealing with the VRT and CO2 issue is to make a direct link between the items. In this way the owners of the cars with the cleanest emissions benefit the most and manufacturers will be encouraged to improve the performance of future models. It doesn’t matter if the benefits are produced by more efficient engines, hybrid technologies or bio-fuels – everyone benefits. Consequently the continued use of a system based on cubic capacity is an unnecessary complication. In summary BMW Group Ireland proposes the following initiatives relating to any VRT system changes: 1. Removal of engine capacity as a determinant of VRT rates. BMW Group Ireland recommends that VRT is linked directly to CO2 emissions. This encourages the introduction of CO2 efficient vehicles. Whilst engine size remains a determinant of VRT in combination with CO2 emissions a situation will arise where some car purchasers will be penalised for purchasing a “cleaner” car with a larger engine. For example the current 318d saloon emits 150 g/km but as a 2.0 litre engine falls into the highest VRT rate. By contrast the 316i saloon emits 184 g/km using a 1.6 litre engine and therefore enjoys a 5% VRT advantage. 2. Introduction of new VRT rates based solely on CO2 emissions. We agree with the department’s current proposal of having seven CO2 bands, however we recommend a more equitable distribution of bands e.g.: Proposed Labelling System This structure would serve to encourage the introduction of lower emission vehicles. 3. Deletion of OMSP complication from the VRT process BMW Group Ireland recommends the removal of the unnecessary complication of OMSP (Open Market Selling Price) from the VRT calculation. This would greatly simplify the administration of the VRT system and ensure a level playing field among all competitors. Mindful of the fact that any change must retain a revenue neutral position for the exchequer we would also propose to reduce all VRT rates appropriately to maintain the revenue status quo. 4. Discontinuation of Hybrid VRT reduction BMW Group Ireland recognises the positive impact of Hybrid technologies in the reduction of CO2 emissions. However, the current concession enjoyed by Hybrid type vehicles does not accurately reflect actual CO2 levels emitted by these particular vehicles which do not offer significant advantages over diesel powered vehicles. For this reason BMW Group Ireland recommends the removal of the Hybrid VRT concession. BMW Group Strategy – effectively reducing CO2 emissions BMW Group has long been aware of its responsibilities to the environment and has taken up a pioneering role among premium manufacturers. The ground-breaking drive technologies recently announced across our model range go far beyond simple hybrid technology and will reduce BMW fleet consumption significantly. Innovations like Brake Energy Regeneration through intelligent Generator Control and Auto Start Stop, reduce CO2 emissions in a way that is considerably greater than that of other manufacturers whose only contribution is through individual hybrid models. The new BMW EfficientDynamics features are yet another step on the way to the declared long-term BMW vision of ensuring eco-friendly personal mobility using internal combustion engines burning hydrogen (BMW CleanEnergy). BMW EfficientDynamics is unique in today’s automotive industry that reduces fuel consumption and CO2 emissions while also increasing dynamic performance. BMW Group is currently investing heavily in Hybrid technology as an interim solution. However BMW CleanEnergy, our hydrogen based technology is BMW’s long-term vision for the mobility of the future. Hydrogen is the most eco-friendly energy source, making it a realistic alternative to fossil fuels. It makes driving with carbon-free fuel and zero CO2 emissions a reality. The BMW Group has demonstrated the practical feasibility of this fuel on many occasions and recently introduced a Hydrogen power BMW 7 Series in a select number of markets on a pilot basis. The VRT structure that we are proposing would automatically benefit CleanEnergy powered cars and encourage manufacturers to invest further in production of a wider range of vehicles of this type. In the event that these proposals are not accepted, BMW Group Ireland fully supports the SIMI’s proposal on this topic. For further information please contact Babette Zingel: Corporate Communications Executive Bookmark with:        
Source: used cars ireland |
pub: 01 Oct 2007 by: Louie | added: 25 Feb 2008 | cat: Motoring News | views: 46 time/s
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