INTERVIEW-German environment minister criticises carmakers
06 Sep 2007 16:28:26 GMT Source: Reuters
By Erik Kirschbaum BERLIN, Sept 6 (Reuters) - Environment Minister Sigmar Gabriel on Wednesday criticised German carmakers for resisting pressure to make more environmentally friendly cars, but said they were now finally getting the message. In an interview with Reuters ahead of next week's international car show (IAA) in Frankfurt, Gabriel said carmakers had been slow to cut cars' carbon dioxide (CO2) emissions and improve fuel efficiency. "The biggest source of tension was that we were putting so much pressure on the car industry so that it would at least start doing what it is now doing," Gabriel said. German carmakers have been hurt by a steep fall sales in the domestic market this year because they were caught off guard by consumer demand for cars with hybrid engines -- which they do not make. German carmakers have long been criticised for resisting the development of hybrid engines and cars with low emissions, while imports from Japan and South Korea have enjoyed growing popularity in Germany. The resistance to low emission vehicles has changed, Gabriel said. "I'm certain that we'll see an explosion in demand for cars with emissions that are considerably lower," said Gabriel, who will attend the car show. New car registrations in Germany, where domestic makers have long dominated, have fallen in each of the first eight months of the year for a cumulative drop of 8 percent. The demand from private customer -- excluding company car purchases -- shows an even more dramatic decline, with new purchases down about 30 percent. The market in Germany has been hit by a 3 percent increase in value-added tax (VAT) this year as well as growing consumer concerns about the environment and an uncertainty about possible tax changes on cars with higher emissions. Gabriel said he was pleased by the appointment this year of former Transport Minister Matthias Wissmann, a pragmatic member of the conservative Christian Democrats, as the president of the VDA German automobile association. "It's delightful that Matthias Wissmann is tackling the issue offensively and is not being pushed around by it," said Gabriel, a member of the rival Social Democrats. "It's not the same association that before was always trying to slow everything down." On Wednesday, an environmental group in Brussels reported European carmakers reduced CO2 emissions from new cars by only 0.2 percent in 2006, far off an agreed goal. Transport and Environment (T&E) said new-car emissions from European producers slipped to 160 grams per kilometre (g/km) on average last year, still way off a voluntary goal of 140 g/km by 2008. Gabriel said he had personally been in favour of introducing a speed limit on German motorways -- which the car industry opposes for fear it would hurt the image and export sales of the powerful German cars built for high speeds. He said it would be hard to pass that in parliament. He said a speed limit on the Autobahns, where there is no general speed limit on many sections and cars can travel at above 200 km/h (120 mph), would have symbolic value for climate protection.