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G4EBT  > FUEL     30.01.08 22:40l 143 Lines 5349 Bytes #999 (0) @ WW
BID : AB7761G4EBT
Read: GUEST
Subj: UK gas guzzlers being ditched
Path: DB0FHN<DB0FOR<DB0MRW<OK0PPL<DB0RES<DK0WUE<GB7FCR
Sent: 080130/1955Z @:GB7FCR.#16.GBR.EU #:60027 [Blackpool] FBB-7.03a $:AB7761G4
From: G4EBT@GB7FCR.#16.GBR.EU
To  : FUEL@WW


Fuel in the UK is just over œ1.00 (Aus $2.25). 

For many of those who can afford to buy and run expensive cars, even if 
the price doubled, the marginal extra cost of fuel is neither here nor
there considering the cost of buying, insuring, and servicing such cars.

It will however hit the residual values of such cars, because people 
who can't afford to buy one new, won't be able to afford to run one
second-hand.

Fuel price, annual car tax and other costs are starting to have an effect
on the broader motoring public in the UK, and EU legislation is to outlaw
high emission cars in any event.

The UK annual car tax is heavily skewed towards smaller eco-friendly cars.

It ranges from no tax at all for below 100g/km CO2, to œ300 for over 226
g/m tax for gas guzzlers. Few who use large engined gas guzzlers are going
to be deterred by that, but in overall terms, many new car buyers are
downsizing.

In London the congestion charge on high emission large-engined vehicles is
becoming punitive. Presently it's œ8.00 a day, but soon to be œ25 a day
for larger cars. (Nil for alternative fuel and low emission vehicles).

It's not just upon cars that the pollution axe is falling.

From this week lorries weighing more than 12 tonnes will have to pay œ200
a day (Aus $450) to enter central London unless the have low tailpipe
emissions. 

From July 2008 all lorries and buses in London weighing 3.5 Tonnes or more
must also comply with low emission rules. By Oct 2010, all diesels over
1.2 Tonnes will be included in that requirement.
 
In 2008, more "greener" cars than gas-guzzlers will be sold this year for
the first time, as drivers respond to rising fuel prices and environmental
concerns. 

Sales of new cars in the top road-tax band fell last year by 15% to the
lowest level on record, according to industry figures obtained by The
Times. 

Conversely, sales of low-emission cars in bands A and B - which 
are either zero-rated for road tax or pay GBP œ35, leapt by 17%. 

Since Jan 2001, sales of cars which emit more than 226g/km CO2 
have plummeted from 275,000, down to 150,000 in 2007 - a 45% drop. 
Conversely, sales of cars which emit 120g/km CO2 have risen from 
almost none in 2001 to 128,646 in 2007.

The Society of Motor Manufacturers and Traders (SMMT) forecasts that 
sales of band G cars paying œ300, such as the Porsche Cayenne and the 
BMW 7 series, will continue to fall sharply and be overtaken this year 
by sales of cars in bands A and B. 

Despite extensive publicity given to the Toyota Prius and other hybrid
cars which combine a petrol engine with an electric motor, most of the
128,646 low-emission cars sold in the UK last year had diesel engines. 

The least polluting conventional car, which averages 72 miles per gallon
and emits only 99g of CO2 per km, (5g/km less than the Prius), is the 1.4L
diesel VW Polo Blue Motion, introduced last year. 

Because the Blue Motion is below 100g/km it's free of annual car tax.

I don't think it will be much of a success. 

At œ12,000 it's overpriced for a sparsely appointed car. 

Compared to the standard Polo, the air-conditioning has been ditched, as
has electric operation for the door mirrors and the remote central locking
is deleted. 

All this has been done to save weight and energy.

No thanks - what's the point?

The UK Government is planning to accelerate the shift to low-carbon cars
with extra taxes on gas-guzzlers and concessions for the greenest models. 

The changes may include a widening of the price gap between each road tax
band, are expected to be announced in the Budget in March. Up to now the
Treasury has protected drivers of medium-sized cars from significant
increases in road tax. 

But a study for the Department for Transport published last week found
that people who drove cars in the middle tax bands were most likely to
switch 
to greener cars if they had to pay higher taxes. Thus, they can expect 
to be hit by the budget.

People who drive band G cars are more likely to absorb any extra cost. 

The Government is considering a number of tax measures. 

These may include higher purchase tax on high emission cars and incentives
to encourage companies, (which buy 55% of all new cars in the UK) to
invest in greener fleets. 

The European Commission has proposed a directive that would force 
manufacturers to reduce the emissions of the average new car from 
160g/km in 2006 to 130g/km by 2012. 

Many European cars attain this already.

Top Ten sales chart of "eco-friendly" cars 
(below 120g/km CO2) sold in the UK in 2007: 

Model          Number Sold   
Peugeot 107      15,333 
Ford Fiesta      14,784 
Toyota Aygo      14,172 
Citroen C1       12,626 
Peugeot 207      11,830 
Toyota Prius      8,755 
Renault Clio      5,230 
Toyota Yaris      5,173 
Volkswagen Polo   4,436 
Mini              4,192 

Source: SMMT. 

These are all small cars - the trick will be for the makers to reduce
emissions on cars in the 1.6L - 2L cars which form the main body of 
the UK car market. Some are well on the way to achieving that.

Note: the above figures don't include manufacturers' 
variants that emit more than 120g/km 

Best wishes 
David, G4EBT @ GB7FCR

Cottingham, East Yorkshire.

Message timed: 19:08 on 2008-Jan-30
Message sent using WinPack-Telnet V6.70
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