Automakers Urge Passage of Camp Advanced Technology Vehicle Tax Credit Bill

WASHINGTON, Feb. 9, 2005 -- The Alliance of Automobile Manufacturers today urged swift passage of Rep. Dave Camp's (R-Mich.) bill to provide consumer tax incentives for advanced technology vehicles.

The legislation, H.R. 626, would provide between $600 and $4,000 per vehicle in tax incentives for consumers who purchase advanced technology vehicles, depending on the vehicle.

"The Alliance supports consumer tax credits for fuel cells, hybrids, and clean diesel because these tax incentives will help put more highly fuel- efficient vehicles on our roadways more quickly," said Alliance President & CEO Fred Webber. "We supported these tax incentives in last year's conference agreement on the energy bill, and we continue to support them."

Automakers are investing billions of dollars to develop and introduce new fuel-efficient automobiles with cutting-edge technologies such as hybrid- electric powertrains, clean diesel, dedicated alternative fuel vehicles, hydrogen-powered vehicles, and fuel cells. Consumer tax incentives can help spur wider sales of these vehicles in the marketplace.

"All of these advanced technology vehicles have a common challenge during early market introduction which is higher incremental costs due to low volumes," Webber added. "Tax incentives will help achieve faster mass-market penetration of these innovative vehicles by helping customers offset a portion of the incremental costs."

The Alliance of Automobile Manufacturers is a trade association of 9 car and light truck manufacturers including BMW Group, DaimlerChrysler, Ford Motor Company, General Motors, Mazda, Mitsubishi Motors, Porsche, Toyota and Volkswagen. One out of every 10 jobs in the U.S. is dependent on the automotive industry. For more information, visit the Alliance website at http://www.autoalliance.org/.