DCX' Zetsche Cautions Against Governmental Interference

January 24, 2007; The AIADA newsletter reported that at the Washington Auto Show Tuesday, DaimlerChrysler AG CEO Dieter Zetsche's speech warned the audience that the goal of greater fuel efficiency could be hampered by government incentives that single out one preferred technological solution.

"What we need to avoid in this country is a legislative bias that favors a single technology, be it hybrid or anything else," Zetsche said.

The Detroit Free Press reported that Zetsche went on to suggest that more efficient solutions to lower fuel consumption could be lost if the Government overrides the market with incentives, such as tax credits and access to special commuter lanes.

Zetsche and others discussed the role of diesel engines, which get 20% to 40% better fuel efficiency and produce less greenhouse gases than standard engines, in the quest for reduced fuel consumption.

Also Tuesday, Volkswagen of America unveiled the Jetta TDI with a diesel engine, which it said will hit the market in the spring of next year. Zetsche said that diesel vehicles appeal to U.S. consumers who want big vehicles -- heavy-duty trucks, jumbo SUVs and even family-hauling minivans.