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Statement on Proposed Tax Incentives for Advanced Vehicles

30 June 1999

Statement on Proposed Tax Incentives for Advanced Vehicles By Josephine S. Cooper, President, Alliance of Automobile Manufacturers, In Response to Legislation Introduced Today By Congressman Robert T. Matsui (D-CA-05)

    WASHINGTON, June 29 -- The following is a statement by
Josephine S. Cooper, President of the Alliance of Automobile Manufacturers:

    "The Alliance of Automobile Manufacturers supports the concept of consumer
incentives to offset the high costs of bringing vehicles with advanced
technology to market.  Such consumer incentives include federal tax credits
applied to the purchase of advanced vehicles such as electric cars, hybrid
electric vehicles, and cars with fuel cells.  These vehicles, with their
technological breakthroughs, pose great benefits for the public by reducing
gasoline consumption and thereby reducing carbon dioxide emissions.  The
Alliance and its members look forward to working with all parties to encourage
the rapid deployment of these promising technologies.
    "The Alliance continues to support clean air, clean fuels, and clean
vehicles.  In the last 25 years, the auto industry has done more than any
other sector to improve the quality of our air.  One of the ways we are
continuing this effort is through the voluntary National Low Emissions Vehicle
(NLEV) commitment, a program that achieves greater vehicle emissions
reductions than are currently required.
    "The Alliance also continues to support the merits of our Tier II
proposal, a 10-year strategy for even cleaner vehicles and cleaner fuels that
is based on sound science and advanced technology.  However, we need near zero
sulfur fuels to reach the clean air goals since sulfur in gasoline cancels out
the benefits of advanced technology.
    "Clearly, automakers are committed to fuel efficiency, to advancing
technology, and to meeting consumer expectations."