Going Green: America's Growth Engine for the 21st Century

Beware: Automotive manufacturers who ignore 'green' will do so at their financial peril

DETROIT, Jan. 11 -- According to commentary delivered by Deloitte Consulting LLP at the 2007 North American International Auto Show (NAIAS) Inforum Automotive Breakfast, companies are falling short in recognizing the impact of a critical business component for survival: "going green." The transition, Deloitte Consulting says, is a vital business component for today's automotive manufacturers in particular, to not only survive, but to thrive.

According to industry experts, automotive manufacturers that generate increased value through reduced impact on the environment, or those who "go green," are the companies that will draw the most customers, the best talent, and long term health -- even as the dynamics of global conditions continue to change at a rapid pace.

"Companies that build a capability for sustainable transformation will build and lock in competitive advantages as the marketplace, regulation and customer demand move in this direction," said Christopher Park, Principal, Deloitte Consulting LLP. "Companies that do not invest now run the risk of being compromised or even eliminated if the effect of sustainability on brand equity drives real and rapid changes in market valuations."

To drive long term and repetitive shareholder value, the definition and application of green principles must be expanded to encompass the entire activity base of the enterprise. According to Deloitte Consulting, "green" can be defined as a set of core principles:

  * Waste is reduced, eliminated or reused

  * Net consumption of resources (capital, human or natural) for a specific
    product or service outcome is reduced

  * Consumed resource is partially or completely replaced

  * The ratios of natural to man-made and organic to synthetic are increased

  * The net global impact footprint (GIF) is reduced.

"Companies need to identify the real issues and relevant facts in opting for a given technology," said Steve Laughman, a Partner of Deloitte & Touche LLP and the Global Automotive Industry Leader. "In fact, just making the choice may be the riskiest piece of this technology shift. Companies that make the right choice will be best poised for success and growth as competition continues to get tougher and "green" becomes an ever more important component of doing business."

  For more information please log onto: www.deloitte.com/automotive

  About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 140 countries. With access to the deep intellectual capital of approximately 135,000 people worldwide, Deloitte delivers services in four professional areas-audit, tax, consulting and financial advisory services-and serves more than 80 percent of the world's largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.

As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu," or other related names.