TOWARDS SUSTAINABILITY

The UK AutomotiveSector

Sixth Annual ReportData

2004

®

10. SOCIAL PERFORMANCE 2110.1 Employee Profiles and

Development 21 10.2 Health and Safety 2210.3 Training 2310.4 Staff Turnover 23

11. STAKEHOLDER AND COMMUNITYENGAGEMENT 24

12. SECTOR ISSUES – SUSTAINABILITY MOBILITY

12.1 Air Quality 2612.2 Road Space Utilisation 2812.3 Safety 3012.4 CO2 3212.5 Sustainable Mobility – Virtuous

and Conflict 34

FURTHER CONTACTEnvironment GroupThe Society of Motor Manufacturers and Traders LimitedForbes HouseHalkin StreetLondonSW1X 7DSUK

Telephone: +44 (0)20 7344 9200E-mail: sustainability@smmt.co.ukWebsite: www.smmt.co.uk

Content1. Chief Executive’s Statement and

Signatories 32. Location Map 43. Data and Report Coverage 54. Executive Summary and Key Indicators 65. Sector Profile 7

6. PRODUCT – Environmental Performance6.1 Average New Car CO2 Emissions 86.2 Sales of Alternatively Fuelled Vehicles 96.3 UK Average New Car Fuel Economy 106.4 CO2 Trends by Vehicle Excise Duty

(VED) band 116.5 Tailpipe Emissions 116.6 Vehicle Recycling 126.7 Vehicle Weights 12

7. PRODUCTION AND DISTRIBUTION ENVIRONMENTAL INPUTS 13

7.1 Signatories‘ Energy Use 147.2 Signatories’ Water Use 14

ENVIRONMENTAL OUTPUTS 157.3 Signatories’ CO2 Emissions 167.4 Signatories’ VOC Emissions 167.5 Signatories’ Waste to Landfill 177.6 Signatories’ Recycling and Recovery 17

8. ECONOMIC PERFORMANCE 188.1 UK Economy 188.2 Production Indicators 188.3 Investment 198.4 Employment 19

9. SUPPLY CHAIN 209.1 Supply Chain Efficiency 209.2 Global Supply Chain 20PAGE 2

1. Chief Executive Statement and Signatories

The signatories in this process are:• Audi• Bentley Motors• BMW Group• Ford Motor Company Limited• GKN Driveline Limited• Honda UK Manufacturing Limited• Jaguar Cars Limited• Land Rover UK Limited• LDV Limited• Nissan Motor Manufacturing (UK)

Limited and Nissan Technology Centre Europe

• Perkins Engines• PSA Peugeot Citroën Automobiles

UK Limited• Rolls-Royce Motor Cars Limited• SEAT• Skoda Auto• Toyota GB plc and Toyota Motor

Manufacturing UK Limited• Vauxhall Motors Limited• Volvo Cars UK Limited• Volkswagen Group UK Limited• Volkswagen Commercial Vehicles

Excluded from the Sixth Annual Report signatory's data are:

• MG Rover• Powertrain

The entry into administration of both MG Rover and Powertrain in March 2005 is an obvious loss to the UK automotive sector. It represents a reduction of about seven per cent in capacity in the context of this report. It highlights the need to maintain a sustainable, productive viable vehicle manufacturing base in the UK, irrespective of the ultimate brand ownership.

For sustainability, 2004 was a year of continued progress as well as some concerns, which are highlighted in this report.

Progress on the environmental front means the UK automotive sector as represented in this report is using less energy and water than ever before. Its output of volatile organic compounds (VOC’s) and CO2 from manufacturing is lower than ever before and it is recycling and recovering more waste than before.

For thousands of people the sector is a safe, enjoyable and rewarding place to work.

The industry has undertaken considerable work in 2004 on progressing stakeholder engagement on sustainable mobility issues. Conscious of the impact of its products during the use phase, work has been started to analyse and assess the most productive ways to progress this agenda. This is outlined in the latter stage of the report.

Christopher Macgowan, Chief Executive, SMMT

PAGE 3

Central Logistics

Vehicle ProductionEngine and Major Component’s Production

Research and Testing

Location of Major Sites Included in Data Reports

Major sites for indicative purposes only

2. Location Map

PAGE 4

Table 1.0 Worldwide Car Assembly ('000s units)

2003 2004 2004 ranking

Change 2004 on

2003Japan 8,478 8,720 1 242

Germany 5,145 5,192 2 47USA 4,510 4,227 3 -283

France 3,220 3,227 4 7Korea 2,768 3,123 5 355Spain 2,399 2,403 6 4China 2,019 2,316 7 297Brazil 1,505 1,756 8 251

UK 1,658 1,647 9 -11 Canada 1,340 1,335 10 -5

Source: SMMT

Data

This report is for 2004, it is intended as trend data, where there are known data issues we highlight them.

Report formatData in the report is quoted in a number of ways:

• Whole industry data (WI)

• All car sales in the United Kingdom (AC)

• SMMT members data (SMMT)

• Signatories to the Sustainability Report, subdivided into:

• All signatories (AS)• Vehicle manufacturing signatories (VMS)

Throughout the report we refer to the Strategy Commitment and we comment in terms of the Strategy Achievement for 2004.

Traffic LightFor the Sixth Annual Report we have used a ‘traffic light’ system to indicate:

GREEN PROGRESS

ORANGE STATIC

RED CONCERN

This report follows the format of the Global Reporting Initiative (GRI) sustainability reporting guidelines. (www.globalreporting.org)

SMMT

• Established in 1902

• Over 500 members, comprising:

• Vehicle manufacturers

• Vehicle importers

• Component suppliers

• Research

• Design

• Engineering and testing

• Project support, business and product improvement:

• Industry Forum supply

• Automotive Academy - training

• Foresight Vehicles Programme -technology

• Annual report launched in 2000, detailing:

• Historical data

• Trend analysis

Sustainability Working Group

This group provides the direction for the report and the inclusion of new data. It meets regularly and agrees the main issues the sector should address, as well as meeting stakeholders. Any members of SMMT are welcome to join the group.

3. Data and Report Coverage

During 2005, MG Rover and Powertrain both entered into administration. This signatories’ report of 2004 data does not include production from either of these companies.

However, graph data in the report includes a bar that indicates the absolute levels on the basis of the inclusion of MG Rover and Powertrain data for 2003.

PAGE 5

4. Executive Summary and Key Indicators

PAGE 6

Table 4.0 Key Performance Indicators 2003 2004 Change REPRESENTATION

Number of signatories (AS) 22 20 -2 CONCERN

Economic Performance (Sector) (WI)Automotive manufacturing sector turnover (£ billion) 46 47.3 +1.3 PROGRESS

Total number of cars and CVs produced (UK) (WI) (million) 1.84 1.86 +0.02 PROGRESS

Total new car registrations (UK) (AC) (million) 2.58 2.57 -0.01 CONCERN

Economic Performance (Signatories)Signatories’ combined turnover (£ billion) (AS) 39.16 34.64 - 4.52 CONCERN

Total number of vehicles produced by signatories (AS) (million) 1.73 1.61 -0.12 CONCERN

Product Environmental PerformanceAverage new car CO2 emissions (g/km) (AC) 172.1 171.4 -0.7 PROGRESS

Average new car fuel economy (miles per gallon) (AC) 37.7 37.9 +0.2 PROGRESS

Company Operational Performance (Signatories)Total combined energy use (GWh) (AS) 6,126 4,072 -2,054 PROGRESS

Energy used per vehicle produced (MWh/unit) (VMS) 2.8 2.5 -0.3 PROGRESS

Total combined water use (000m3) (AS) 8,404 7,037 -1,367 PROGRESS

Water use per vehicle produced (m 3 /unit) (VMS) 3.4 3.4 0 STATIC

Total combined CO2 equivalents (tonnes) (AS) 1,679,832 1,447,900 -231,932 PROGRESS

CO 2 equivalents per vehicle produced (tonnes/unit) (VMS) 0.7 0.7 0 STATIC

Total combined emissions of VOCs (tonnes) (AS) 7,337 5,480 -1,857 PROGRESS

VOC emissions per vehicle produced (kg/unit) (VMS) 4.1 3.5 -0.6 PROGRESS

Total combined waste to landfill (tonnes) (AS) 56,743 52,842 -3,901 PROGRESS

Waste to landfill per vehicle produced (kg/unit) (VMS) 17.9 19.8 1.9 CONCERN

Social Performance (Signatories)

Signatories’ combined number of employees (AS)87,625 76,327 -11,298 CONCERN

Signatories' lost-time incidents (AS)710 491 -219 PROGRESS

Signatories' average number of training days3.8 2.9 -0.9 CONCERN

Signatories’ average staff turnover (%) (AS)6.10 8.65 +2.55 CONCERN

4. Executive Summary and Key Indicators cont.

Signatories: 2004 data for this report does not include MG Rover and Powertrain, hence the decline in turnover and production.

Product: Average CO2 emissions from new cars declined in 2004, but by a smaller amount than in previous years. The change in sector profile contributed to the slower rate of reduction.

Operational Performance: Progress in nearly all areas continues. Waste to landfill was affected by major re-engineering at one site.

Social: The number of employees continues to decline. Improvements in health and safety are very welcome. Training levels appear to have declined in 2004. Staff turnover increased, but remains very low by comparison with other sectors.

5. Sector Profile

• Economic progress largely static.

• Number of employees continues to fall.

• Industry is vital to export success.

• Share of global production static.

• Number of vehicles produced (cars and light vans) increased slightly.

• Car registrations declined slightly.PAGE 7

Table 5.0 Sector Fact Sheet 1999 2000 2001 2002 2003 2004

Automotive manufacturing sector turnover (WI) (£ billion) 44.2 42.5 42.2 44.6 a 46.0 a 47.3Share of total manufacturing turnover (UK turnover) (%) 9.6 9.1 9.2 a 9.9 a 10.3 a 10.1Total Net Capital Investment (WI) (£ billion) 2.13 2.08 2.25 1.3 a 1.2 a 1.4Automotive sector value added (WI) (£ billion) 7.7 7.8 9.0 a 8.8 a 8.6 a 8.9Total employees directly dependent on the automotive sector (WI) 863,000 a 847,000 a 835,000 a 838,000 a 816,000 a 806,000Value of exports (WI) (£ billion) 19.1 19.8 18.0 20.9 21.9 a 22.5Percentage of total UK export (%) 11.5 10.5 9.5 11.2 11.6 a 11.8Sector value added share of UK GDP (%) 3.9 3.4 3.8 a 3.7 a 3.6 a 3.7UK sector share of global passenger car production (%) 4.5 4.0 3.7 3.9 3.9 3.7Number of UK volume passenger car manufacturers (WI) - 9 9 9 9 9 b

Number of UK commercial vehicle (CV) manufacturers (WI) - 10 10 9 9 9Number of cars and CVs produced (million) 2.02 1.81 1.68 1.82 1.84 1.86New car registrations (AC) (million) 2.19 2.22 2.45 2.56 2.58 2.57Cars and light CVs on the road (million) 29.5 29.9 30.5 31.3 31.9 32.4

a Economic data has been reviewed in the light of national statisticsand revised where indicated.b MG Rover remained in production during 2004, though data is notincluded in this report.

6. Product Environmental Performance

STRATEGY COMMITMENT: to continue to improve fuel efficiency.

EU COMMITMENT: to reduce CO2 emissions from new cars by 25 per cent between 1995 and 2008 across Europe.

STRATEGY ACHIEVEMENT: decline in new car CO2 emission levels continued in 2004, but at a slower rate due in part to weaker consumer demand in the smaller car segments.

• The average new car sold in the UK in 2004 emitted 171.4 g/km of CO2, nearly ten per cent below the 1997 figure.

• The proportion of cars sold with a CO2 emission figure of less than 140 g/km continues to increase, reaching 15.5 per cent in 2004, up from 14.9 per cent in 2003.

• The supermini sector (Fiesta, Corsa, Punto, Polo, Clio etc.), the largest in the UK, had an average new car CO2 emission figure of 147 in 2004.

• Although the average CO2 emission levels of new cars sold in the UK continues to improve, the rate of improvement has slowed in recent years and a substantial increase in the demand for fuel-efficient vehicles will be required if the 2008 target is to be achieved.

6.1 Average New Car CO2 Emissions

PAGE 8

171.4

177.7174.2

172.1

181.0185.0

188.4189.9

160.0

165.0

170.0

175.0

180.0

185.0

190.0

1997 1998 1999 2000 2001 2002 2003 2004

CO

2 Em

issi

ons

g/km

Market position

In 2004:

• Sales of alternatively fuelled vehicles remain low, accounting for less than one in every 625 sold in 2004.

• Market share of alternatively fuelled vehicles fell in 2004.

• Hybrid (petrol/electric) vehicles have grown at the expense of liquefied petroleum gas (LPG).

• Sales of LPG vehicles have declined as a result of fuel duty changes.

Grant Mechanisms

Late in 2004 the government announced the European Commission was undertaking a review of the ‘PowerShift’ and ‘CleanUp’ grants to encourage the take-up of environmentally friendly technology.

Any grants for AFVs is therefore unlikely in 2005.

6.2 Sales of Alternatively Fuelled Vehicles (AFVs)

625

1

For every one AFV vehicle sold, 625 conventional powered vehicles are sold.

PAGE 9

Table 6.2 AFV Sales 2000 2001 2002 2003 2004Petrol/Gas 94 971 2,473 3,185 1,756Petrol/Electric Hybrid 263 719 339 1,079 2,462Electric Only 0 0 35 2 0Total AFV 357 1,690 2,847 4,266 4,218Market Share 0.02 0.07 0.11 0.17 0.16

0500

1,0001,5002,0002,5003,0003,5004,0004,500

2000 2001 2002 2003 2004

Sale

s of

new

veh

icle

s

Electric only

Petrol/electrichybridPetrol/gas

• There was a small improvement in the average miles per gallon (MPG) for new cars sold in the UK from 37.7 MPG in 2003 to 37.8 in 2004.

• Source SMMT and DfT data.

The Diesel Story• The number of diesel-powered cars sold in the UK increased by 138 per cent between

1997 and 2004.

• The diesel share of the new car sales increased to 32.5 per cent in 2004, up from 27.3 per cent in 2003.

• Quieter and more responsive vehicles, reduced service intervals, wider model availability and lower running costs have all increased the attraction of diesel vehicles.

• Diesel engines cost considerably more to produce than their petrol counterparts, they work at higher operating pressures and are more sophisticated.

• Diesel penetration is forecast to reach 38 per cent by 2006, but is not forecast to grow much beyond 40 per cent, given the present duty level on diesel fuel.

• Diesel penetration in Europe averaged 49 per cent in 2004, with some countries as high as 70 per cent.

• Newly proposed emissions regulations (Euro 5) are at present being discussed.

• As a consequence of the new standards, particulate filters for diesel engines are likely to become a requirement.

6.3 UK Average New Car Fuel Economy

PAGE 10

34.5 35.0 35.6 36.4 37.1 37.7 37.8

20.022.024.026.028.030.032.034.036.038.040.0

1998 1999 2000 2001 2002 2003 2004

Fuel

eco

nom

y (m

iles

per

gallo

n)

6.5Tailpipe Emissions

6.4 CO2 Trends by Vehicle Excise Duty (VED) Band

STRATEGY COMMITMENT: to continue to research, develop and bring cleaner technologies to the market to improve tailpipe emission standards.

STRATEGY ACHIEVEMENT: manufacturers continuously work to research, develop and introduce improvements in tailpipe emissions.

Tracking the Trends• The graph above shows the trends in

new car CO2 emissions in relation to the current vehicle excise duty (VED) bands.

• These reflect the new colour-coded bands the label was introduced in September 2005.

• Euro 4 emissions standards for cars became compulsory for newly introduced models from 1 January 2005, and or all models from 1 January 2006.

• Euro 5 standards are now in the latter stage of consultation.

• Manufacturers will continue to invest to achieve Euro 5 air quality standards, but at the same time reduce CO2 emissions. These principles create complex technology.

• Improvements to air quality through exhaust gas treatment will pose a dilemma in CO2 reduction levels and costs.

PAGE 11

0.010.020.030.040.050.060.070.080.090.0

100.0

1997 1998 1999 2000 2001 2002 2003 2004

Per

cent

mar

ket s

hare F

EDCBA

Table 6.4 VED Bands label g/kmA less than 100B 101 - 120C 121 - 150D 151 - 165E 166 - 185F 186 plus

Index of Gross Vehicle Weight

100

120

140

160

180

200

220

240

260

280

300

1999 2000 2001 2002 2003 2004

Inde

x (1

999

min

i seg

men

t = 1

00)

A - MINI

B - SUPER MINI

C - LOWERMEDIUM

D - UPPERMEDIUM

E - EXECUTIVE

F - LUXURYSALOON

G - SPECIALISTSPORTS

H - DUAL-PURPOSE

I - MULTI-PURPOSE

6.6 Vehicle Recycling

6.7 Vehicle Weights

STRATEGY COMMITMENT: to continue to facilitate efforts to improve the level of material recovery from end-of-life-vehicles (ELVs)

STRATEGY ACHIEVEMENT: continued compliance with regulation and development and research in other areas; future success is sensitive to commodity prices.

The following developments in vehicle recycling took place in 2004:

• The final stages of legislation for the End of Life of Vehicles Directive.

• The establishment of ‘take-back’ networks in the UK.

• Regulatory target of a minimum of 85 per cent (by weight) recycling.

• Healthy scrap values maintain strong markets for waste steel and a buoyant steel and automotive scrapping industry.

• Discussions began on progression toward 95 per cent recycling targets.

PAGE 12

The Overall Weighted Index of Gross Vehicle Weight:1999 1002004 109

7. Production and Distribution – Environmental Inputs

STRATEGY COMMITMENT: to continue to control and reduce the environmental impact of company operations.

STRATEGY ACHIEVEMENT: the reduction in impact on the environment of company operations continues across nearly all key sectors, except waste to landfill, where a dramatic decline in 2003 was not quite matched in 2004.

Energy Use• Energy use continues to decline both in absolute and per unit terms.

• The sector has grappled with EU Emission Trading Scheme (ETS) Phase One, and has been able to show reductions.

• The manufacturing element of the sector, as opposed to the retailing and tertiary element demonstrates more significant reductions.

• Manufacturers in the UK are players in the EU ETS and the Climate Change Levy (CCL).

Water Use • Water use continues to decline in absolute terms and unit measures remain stable.

• Since 2000 the amount of water use per vehicle produced has declined by more than 35 per cent.

MG Rover and Powertrain: in the attached graphs we indicate by a bar ( ) the absolute level that would have been achieved if data for 2003 for these two companies is added to signatories’ 2004 data.

PAGE 13

Table 7.0 A Signatories and the environment 1999 2000 2001 2002 2003 2004

Number of signatories 11 18 18 24 22 19Number of manufacturing sites covered by SMMT's sustainability strategy 40 44 45 43 38 32Number of manufacturing sites with a certified Environmental Management System 26 (65%) 35 (79%) 37 (82%) 35 (81%) 33 (87%) 32 (100%)Number of companies having minimum environmental standards applying to UK-based suppliers

- 11 (65%) 12 (67%) 12 (52%) 13 (59%) 10 (52%)

TABLE 7.0 Inputs 1999 2000 2001 2002 2003 2004

Total combined energy use (GWh) (AS) 6,110 7,013 6,857 6,540 a 6,126 5,337Energy use per employee (kWh) (AS) 64,175 70,108 71,166 74,685 69,912 69,923Energy use per £1million turnover (kWh) (AS) 303,828 309,717 281,036 186,943 156,419 154,062Energy use per vehicle produced (MWh/unit) (VMS) 3.1 3.9 4.3 4 2.8 2.5

Total combined water use ('000m3) (AS) - 9,620 10,105 9,108 8,404 7,037Water use per employee (m3) (AS) - 96.2 104.9 101.8 95.9 92.2Water use per £1million turnover (m3) (AS) - 457 414 255 215 203Water use per vehicle produced (m 3 ) (VMS) - 5.3 6.2 5.6 3.4 3.4

a Revised from 6,681.

• All signatories saw a decline in energy use in 2004.

• Energy use per vehicle is now over 40 per cent lower than in 2001.

• Total energy usage declined, but this mainly reflected the MG Rover Powertrain impact.

• Water use per vehicle remained static.

• Absolute water use declined by eight per cent, taking into consideration signatories not included in 2004 data.

7.17.1 Signatories’ Combined Energy Use

7.2 Signatories’ Combined Water Use

PAGE 14

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1999 2000 2001 2002 2003 2004

Com

bine

d en

ergy

use

(GW

/h) (

bars

)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

kWh

per

vehi

cle

(line

)

0

2,000

4,000

6,000

8,000

10,000

12,000

1999 2000 2001 2002 2003 2004

Com

bine

d w

ater

use

(000

m3 ) (

bars

)

0

1

2

3

4

5

6

7

m3 pe

r ve

hicl

e (li

ne)

7. Production and Distribution – Environmental Outputs

CO2 Output• CO2 generated from manufacturing, retailing and tertiary operations declined for the

fifth successive year in a row.

• CO2 generated per vehicle produced remains static at 0.7 tonnes per vehicle, nearly half of that recorded in 2001.

Volatile Organic Compounds (VOCs)• More progressive decline per vehicle is encouraging.

Waste to Landfill• Increased per vehicle by ten per cent over a very low 2003 figure.

Recovery and Recycling• Recycling and recovery obligations of packaging waste for the sector are now in

excess of 16,000 tonnes per annum nearly double the obligation of 1999.

PAGE 15

TABLE 7.3 Outputs 1999 2000 2001 2002 2003 2004

Total Combined CO2 equivalent (tonnes) (AS) 1,821,586 2,182,926 2,149,771 1,954,295 a 1,679,832 1,447,900CO2 equivalent per employee (tonnes) (AS) 19.3 21.8 22.3 23.9 19.2 19.0CO2 equivalent (tonnes) per £1million turnover (AS) 90.6 95.3 88.1 59.9 42.9 41.8CO 2 equivalent per vehicle produced (tonnes) (VMS) 1.1 1.1 1.3 1.2 0.7 0.7

Total Combined Emissions of VOC (kg) (AS) 4,018,951 7,136,682 6,926,340 6,240,100 7,336,780 5,479,870Emissions of VOC per employee (kg) (AS) 42.2 71.3 71.9 69.7 83.7 71.8Emissions of VOC per £1million turnover (kg) (AS) 199.8 339.0 284.0 174.6 187.4 158.2Emissions of VOC per vehicle produced (kg) (VMS) 2.9 4.4 4.6 4.2 4.1 3.5

Total Combined Waste to landfill (tonnes) (AS) 54,954 80,399 121,207 70,897 56,743 52,842Waste to landfill per employee (tonnes)(AS) 0.6 0.8 1.3 0.8 0.6 0.7Waste to landfill per £1million turnover (tonnes) (AS) 2.7 3.7 4.9 2.0 1.4 1.5Waste to landfill per vehicle produced (kg) (VMS) - 40.3 66.4 40.5 17.9 19.8

Total Combined Packaging waste for recovery (tonnes) (AS) 10,900 20,272 16,768 17,053 15,038 16,809Packaging waste for recovery per employee (tonnes) (AS) 0.11 0.2 0.17 0.3 0.2 0.2Packaging waste (tonnes) for recovery per £1million turnover (tonnes) 0.5 0.9 0.7 0.7 0.4 0.5Packaging waste (kg) for recovery per vehicle produced (VMS) 5.6 10.5 8.4 8 6.5 7.9

Total Combined Packaging waste for recycling (tonnes) (AS) 1,802 5,058 6,344 5,801 12,587 16,003Packaging waste for recycling per employee (kg) (AS) 18.9 50.5 65.8 61.4 143.6 209.7Packaging waste for recycling per £1million turnover (kg) (AS) 89.6 240 260 153 321.4 462.0Packaging waste for recycling per vehicle produced (kg) (VMS) 1.1 2.5 3.5 2.8 5.1 8.5

a Revised from 2,142,706.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1999 2000 2001 2002 2003 2004

CO

2 eq

uiva

lent

(ton

nes)

(bar

s)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

CO

2 equ

ival

ent p

er v

ehic

le

prod

uced

(ton

nes)

(lin

e)

7.3

• CO2 output per vehicle produced remained unchanged at 0.7 per tonne.

• For the typical new car this represents just over 4,000 km (2,500 miles) of driving.

• This data is for the final car assembly process and does not include transportation of materials or finished product.

• Total output of CO2 from signatories fell by 230,000 tonnes, or over 45,000 tonnes including the MG Rover Powertrain impact.

• CO2 output per vehicle produced has reduced by 45 per cent since 2001.

7.4 Signatories’ Combined VOC Emissions

7.3 Signatories’ Combined CO2 Emissions

PAGE 16

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

1999 2000 2001 2002 2003 2004

VOC

em

issi

ons

(kgs

) (ba

rs)

00.5

11.5

22.53

3.54

4.55

kg p

er v

ehic

le (l

ine)

• Variable performance across signatories in absolute terms, roughly half increasing, half decreasing.

• Decline in the level of VOCs per vehicle produced is encouraging.

• Absolute levels decline even after consideration given to MG Rover and Powertrain.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1999 2000 2001 2002 2003 2004

Was

te to

Lan

dfill

(ton

nes)

(bar

s)

0

10

20

30

40

50

60

70

kg p

er v

ehic

le (l

ine)

7.6 Recycling and Recovery

• For the most part the progress made in 2003 has been maintained in 2004.

• Some site-specific increases related to redevelopment projects.

• Total waste to landfill increased by 500 tonnes, when consideration is given to MG Rover and Powertrain.

Packaging Obligations• Reported figures are on target for recycling and recovery for the signatories.

• Total signatory waste recycling and recovery obligations are now 32,811 tonnes.

• Recycling obligation targets have increased eight fold since 1999.

Actual Recycling and Recovery

Recycling• We asked signatories to report on actual levels of recycling in 2004.

• Returns were received from 12 signatories.

• The tonnes recycled numbered over 145,000 tonnes (please note some signatories include metal recycling in this figure).

Recovery• We asked signatories to indicate material re-used on site.

• Only four signatories gave returns.

• The figure amounted to over 3,000 tonnes.

7.57.5 Signatories’ Combined Waste to Landfill

PAGE 17

8. Economic Performance

8.1 UK Economy

8.2 Production Indicators

STRATEGY COMMITMENT: to continue to seek economic growth and secure competitiveness in the global environment.

STRATEGY ACHIEVEMENT: the UK remains a focus of automotive production, design and research excellence. The entry into administration of MG Rover and Powertrain in 2005 will impact on but not significantly reduce the strength of the industry.

• All car production of 1,646,750 includes MG Rover.

• Signatory total of 1,614,981, does not include MG Rover, but does include some van production.

• MG Rover production in 2003 was 132,789.

• Car and commercial vehicle production in 2004 increased by less than one per cent on 2003.

• Data for 2004 remains static, with the sector representing just less than one per cent of GDP.

• The value of exports increased by just under three per cent in 2005.

PAGE 18

Table 8.0 Contribution to UK Economy 1999 2000 2001 2002 2003 2004

Value of UK Automotive Exports (£ billion) (WI) 19.1 19.8 18 20.9 a 21.9 a 22.5 Expenditure on Business R&D (£ million)(WI) 1,145 929 930 960 955 955Sector share of total GDP at market price (%) (WI) 0.8 0.8 0.9 0.9 0.8 0.8

a Eonomic data has been reviewed in the light of nationalstatistics and revised where indicated.

Table 8.2 Economic Indicators 1999 2000 2001 2002 2003 2004

UK automotive manufacturing sector turnover (£ billion) (WI) 44.2 42.5 42.6 a 44.6 a 46.0 a 47.3 a

Signatories combined turnover (£ billion) (AS) 20.1 21.0 24.4 35.7 39.2 34.6Total UK number of new cars produced (AC) 1,786,623 1,641,317 1,492,146 1,629,744 1,657,558 1,646,881Total UK number of new CVs produced 185,905 172,442 192,872 191,267 188,871 209,293Total UK number of new vehicles produced 1,972,528 1,813,759 1,685,018 1,821,011 1,846,429 1,856,174

Total number of new vehicles produced by signatories 1,572,642 1,470,659 1,441,794 1,731,894 1,614,981Total number of new car registrations (AC) 2,197,615 2,221,647 2,458,769 2,563,631 2,579,050 2,567,269Total number of new CV registrations 288,100 298,043 313,411 322,258 363,687 389,923Total number of new vehicle registrations 2,485,715 2,519,690 2,772,180 2,885,889 2,942,737 2,957,192

a Economic data has been reviewed in the light of nationalstatistics and revised where indicated.

8.3 Investment

8.4 Employment

STRATEGY COMMITMENT: to continue to secure and enhance employment opportunities where appropriate

STRATEGY ACHIEVEMENT: signatories work hard to make the sector asustainable place to work and to increase diversity and skills. The closure of MG Rover and Powertrain in 2005 will lead to a decline in sectoremployment of 6,200 direct jobs and some in the component sector.

• MG Rover and Powertrain (reported as employing 6,200 in 2003) account for about 50 per cent of the 11,000 decline in signatory employees.

• Total employment in the sector continues to decline, but vehicle production is slightly up.

• The sustainability dilemma of economic benefit versus employment level is present, with industry needing to match the best productivity in the world, with low fixed costs.

• Investment was static, but at a consistently lower level than in the first three reporting years.

• Research and development investment increased slightly in 2004.

PAGE 19

Table 8.3 Investments 1999 2000 2001 2002 2003 2004

Auto manufacturing sector net capital investment (£ billion) 2.13 2.08 2.23 1.3 a 1.2 a 1.4 Inward direct investment into automotive manufacturing (£ billion) 3.48 2.73 -0.85 -0.23 535 535Expenditure on business research and development (£ billion) 1.14 0.93 0.96 a 1.0 a 1.25 a 1.26 Signatories combined UK investments - £1.28bn £1.22bn £1.52bn £1.80bn ND

a Economic data has been reviewed in the light of nationalstatistics and revised where indicated.ND No data for 2004.

Table 8.4 Employment Indicators 1999 2000 2001 2002 2003 2004

Number of jobs dependent on the sector 863,000 847,000 835,000 838,000 816,000 806,000· Automotive manufacturing 260,000 250,000 a 237,000 a 232,000 a 225,000 a 218,000

· Automotive supply and use 608,000 a 597,000 a 598,000 a 606,000 a 591,000 a 588,000

Signatories total combined employees (AS) 95,214 100,036 96,357 89,455 87,625 76,327 b

a Economic data has been reviewed in the lightof national statistics and revised whereindicated.b 82,425 if MG Rover and Powertrain 2003 numbers included.

9.1 Supply Chain Efficiency

STRATEGY COMMITMENT: to support Industry Forum and work to enhance supply chain efficiency.

STRATEGY ACHIEVEMENT: signatories continue to drive quality through the supply chain and, where practical, continue to develop the use of alternative modes of transport, in their logistics networks.

9.2 Global Supply Chain

• For 2004 we asked signatories to report on the extent to which their supply chain is global.

• Most signatories do not collect this data, and those that do are only just starting to collate this information.

• Our objective remains to ascertain the distance from which components are sourced to assess the contribution to sustainability of the industry.

• We are aware of the global nature of components manufacturing and look to provide an indicator for this.

9 Supply Chain

Industry Forum www.industryforum.co.uk

Industry Forum works together with the automotive industry to create tangible results in manufacturing processes its aims being to achieve a sustainable world leading competitiveness in the UK-based vehicle and components industry.

To put this work into context:

• Some 70 per cent of the cost of every vehicle is bought in, firs- tier suppliers are important.

• Second and third-tier suppliers are equally important because 60 to 70 per cent of the cost of each product supplied by the first-tier is also bought in.

• Therefore for the long term success of the manufacturing process in the UK, effective supply chain management is fundamental.

PAGE 20

10. Social Performance

10.1 Employee Profiles and Development

STRATEGY COMMITMENT: continue to improve the skills, facilities and opportunities available for employees

STRATEGY ACHIEVEMENT: difficult to quantify fully, but low staff turnover, flexible working policies, high levels of training, good health and safety and high quality of staff facilities all indicate some success

Employee profile

• In 2004 just over nine per cent of the workforce were female; no change from 2003.

Flexible Working

• Flexible working arrangements are being introduced by more signatories and to a greater degree to attract and retain employees:

• One signatory saw a 33 per cent increase in the take-up of flexible working.

• Two other signatories have introduced a sabbatical leave programme.

Employee support

• Child care, counselling and drug screening are all increasingly offered to employees.

• One signatory introduced a 24-hour employee help line in 2004.

• Drug and alcohol policies are being revised and updated.

• Testing for drugs and alcohol are now in place at some signatories.

Trade Union Partnership

• To help make the UK a world-class manufacturing base consultation is taking place with trade unions to establish how this can be achieved.

Other examples of employee development

• Support for employees in the process of adopting children through additional leave.

• Development of ‘smoking-free’ sites and encouragement to employees to give up smoking.

• Programmes to involve employees’ families in workplace activities.

• Plans for ‘carers’ leave for those employees looking after elderly relatives, for example.

• Companies have programmes involving non-UK based staff, demonstrating the exchange and inter-relationship of global partnerships and human resources. PAGE 21

10.2 Health and Safety

Data for 2004

• More than 200 fewer lost-time incidents reported in 2004.

• The figure is still over 180 when the loss of MG Rover as a signatory is taken into account.

Targets

Most signatories have either:

• Percentage reduction on previous rate or,

• Target reductions of between ten and 40 per cent, these are being met.

• Reductions of up to 60 per cent in some types of incident.

• Actual rate per day or per hour targets

• Frequency, incident and severity actual targets, in terms of days or per 1,000 employees.

Rehabilitation for work

• Occupational health facilities, for free use by employees.

• Return-to-work programmes.

Awareness Campaigns

• Asthma awareness.

• Monthly bulletins, including HSE competitions.

• Site meetings on safety, and health issues.

• The ‘safety challenge’ - employees generating funds for local charity through accident reduction, this is an initiative by one signatory.

• Safety awards; best international practise workshops.

• Major schemes for contractors.

• Major health screening programmes.

There have been significant improvements in health and safety performance in 2004. Lost-time incidents saw a reduction in all but two signatories.

PAGE 22

Table 10.3 Reported Lost-Time Incidents

2002 2003 2004 Change 2004 on 2003

Number of incidents 669 710 491 30% reduction

10.3 Training

10.4 Staff Turnover

Training is vital to the industry and although the number of training days declined in 2004, major training programmes are a part of every day operations.

Although staff turnover has increased, at less than ten per cent it remains very low in the context of other sectors.

Automotive Academy www.automotiveacademy.co.uk

• Full-time team set up in July 2004.

• Supported financially by the Department for Trade and Industry, run/owned by SMMT.

• Worldwide training for manufacturers and components suppliers.

• Regional spokes.

NVQ

• Committed to NVQs and training for staff through this process.

Other training developments during 2004

• Stress management training.

• Personal development reviews have been updated, tracking both formal and informal training for individuals.

• Developments in performance management training were highlighted by a number of signatories.

• Support for e-learning as a new training tool.

This data does not include MG Rover and Powertrain.

PAGE 23

Table 10.4 Training 2003 2004 Change 2004 on

2003Total number of training days a 241,549 128,709 -112,840Average number of training days per employee 3.8 2.9 -0.9

a For reporting signatories.

Table 10.5 Staff Turnover 2003 2004 Change 2004 on

2003Per cent staff turnover a 6.1 8.7 2.6

a For reporting signatories

11. Stakeholder and Community Engagement

STRATEGY COMMITMENT: continue to engage positively with externalstakeholders

STRATEGY ACHIEVEMENT: further developing success in engaging with many stakeholders

National Stakeholder Engagement

• Low Carbon Vehicle Partnership, development of the colour coded fuel economy label.

• Transport 2000, Worldwide Fund for Nature.

• Business in the Community.

• UK Climate Impacts Programme.

• CARE – automotive recycling.

• National Society for Clean Air – Cleaner Transport Forum.

Regional Stakeholder Engagement

• During 2004 the SMMT joined Sustainability West Midlands (SWM) to support sustainability in the region and enable engagement with a wide range of stakeholders

Company Stakeholder and Community Engagement

• Members are directly involved in national, regional and local projects. These include hospitals and schools (with visits and engineering clubs).

• One signatory allows each employee to set aside up to 16 hours per year to spend in community projects.

• Other examples of stakeholder involvement include:

• Business in the Community Hospitals and NSPCC

• Plant tours Princes Trust

• Forum for the Future Born Free Foundation

• Groundwork Red Cross

• Future Forests

PAGE 24

12. Sector Issues – Sustainable Mobility

During recent years the Annual SMMT Sustainability Report has sought to address the issue of sustainable mobility.

During 2004 the Society and its members decided that more work should be undertaken on this important issue.

It was decided to focus on four key areas:• Air Quality• Improving Road Space Utilisation• Road Safety• Carbon Dioxide Emissions From Road Transport.

These four key issues are considered fundamental to the development of sustainable road transport.

The strategy adopted for further work was to ‘mind map’ all the factors that can contribute to improvements in each of these four key areas by all stakeholders. The maps therefore highlight:

Key objectives for improvement in the four sustainable mobility issues

A summary of these key objectives is based on :

Strategy and Strategy Enablers have then been linked to these objectives

Process

The process was to develop the maps, initially internally, and then where appropriate to introduce them to stakeholders for early discussion and reaction during the development stage where amendments were incorporated.

Complexity and Areas of Responsibility

The concept behind the maps is to illustrate the complexity of these four key issues and to illustrate areas of responsibility. The next stage will be to understand the correctness of this approach and the ability of groups and organisations to accept this.

Levers and Effectiveness and Quantification

The maps lend themselves to further in-depth work. It is the intention of SMMT to look at leverage, ‘which strategies have the greatest impact’.

This may include work to account for quantified policy and strategy success.

Feedback

The maps are in a developmental stage and we would welcome any feedback on the maps themselves or on the processes to develop them.

• Vehicle and fuel technology• Infrastructure technology and management• Use controls

• Managing demand• Driver performance• Vehicle choice

PAGE 25

12.1 Air Quality

The mind maps are intended to address not only the issue of new vehicles, but also the wider issue of the ‘parc’,- all the vehicles on the road.

Hence durability of emissions equipment is a strategy enabler for improvement in air quality.

Considerable work has been undertaken on air quality and cost and cost benefit analysis. The mind map will focus such work.

PAGE 26

One of the objectives of the mind map is to provide an easily understood reference point to which industry, government and stakeholders can relate.

DfT

TAs

Co’s

Police

LAs

NGO

Media

VOSA

Con

ACAD

T’ury

DEFRA

DSA

VCA

EURO

Me

DTI

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RDA

Department for Transport

European Regulation Directive

Companies

Local Authorities

Treasury

Department for Food Environment and Rural Affairs

Driving Standards Agency

Vehicle and Operator Services Agency

Regional Development Agency

Highways Agency

Media and Press

Department for Trade and Industry

Police

Consultants

Individuals

Automobile Club of Germany

Non-Governmental Organisations

Traffic Authorities

Vehicle Certification Agency

ODPM

BWB

EST

Office of the Deputy Prime Minister

British Waterways Board

Energy Savings Trust

PAGE 27

Impr

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and

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hip

to

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12.2 Road Space Utilisation

Congestion is created by the demand for road space exceeding supply. The supply of road space can be improved by technology; in vehicle and at the roadside and through information to the driver.

Demand for travel is a complex formula of value cost and opportunity.

PAGE 28

The Department for Transport (DfT) ‘Making Smarter Choices Work’ report and publication in 2004 highlights a number of strategies to inform and change the way we understand the need and way in which we travel.

DfT

TAs

Co’s

Police

LAs

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Media

VOSA

Con

ACAD

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DEFRA

DSA

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Department for Transport

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Companies

Local Authorities

Treasury

Department for Food Environment and Rural Affairs

Driving Standards Agency

Vehicle and Operator Services Agency

Regional Development Agency

Highways Agency

Media and Press

Department for Trade and Industry

Police

Consultants

Individuals

Automobile Club of Germany

Non-Governmental Organisations

Traffic Authorities

Vehicle Certification Agency

ODPM

BWB

EST

Office of the Deputy Prime Minister

British Waterways Board

Energy Savings Trust

PAGE 29

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12.3 Safety

The trend for reduction in road traffic accidents continues for some types of incidents, but not for others. As the level of traffic increases, managing road safety is an important issue. Driver performance and technology, and technology linked to infrastructure are becoming increasingly important.

PAGE 30

DfT

TAs

Co’s

Police

LAs

NGO

Media

VOSA

Con

ACAD

T’ury

DEFRA

DSA

VCA

EURO

Me

DTI

HA

RDA

Department for Transport

European Regulation Directive

Companies

Local Authorities

Treasury

Department for Food Environment and Rural Affairs

Driving Standards Agency

Vehicle and Operator Services Agency

Regional Development Agency

Highways Agency

Media and Press

Department for Trade and Industry

Police

Consultants

Individuals

Automobile Club of Germany

Non-Governmental Organisations

Traffic Authorities

Vehicle Certification Agency

ODPM

BWB

EST

Office of the Deputy Prime Minister

British Waterways Board

Energy Savings Trust

PAGE 31

Impr

ovin

g Ro

ad S

afet

yO

BJEC

TIVE

STRA

TEGY

STRA

TEGY

EN

ABLE

RS

1. Im

prov

ing

Road

Sa

fety

thro

ugh

vehi

cle

tech

nolo

gy

and

desi

gn

2. V

ehic

le

type

and

si

ze

8. D

river

Ed

ucat

ion

4. Im

prov

ing

the

vehi

cle

to

vehi

cle

inte

rfac

e

3. Im

prov

ing

the

vehi

cle

to

pede

stria

n cy

clis

t in

terf

ace

5. Im

prov

e tr

affic

m

anag

emen

t

6. C

hang

e in

sura

nce

com

pany

po

licy

1.1

Activ

e de

sign

fe

atur

es

1.2

pass

ive

desi

gn

feat

ures

2.1

Unde

rsta

ndin

g v

ehic

le

to v

ehic

le

cras

h sa

fety

1.1.

1 Ai

rbag

s1.

1.2

Seat

belts

1.1.

3 Cr

ash

bars

1.1.

4 In

car

de

sign

1.2.

1 Pe

dest

rian

prot

ectio

n

1.2.

2 Br

akin

g te

chno

logy

1.2.

3 Ve

hicl

e Ra

dar

2.1.

1 ve

hicl

e cl

ass

segr

egat

ion

“lorr

y on

ly

lane

s”

4.1

Road

des

ign

impr

ovem

ent

4.1.

1 Se

greg

atin

g tr

affic

flow

s.4.

1.2

road

de

sign

im

prov

emen

t.

Surf

aces

, be

nds,

ca

mbe

r4.

1.3

junc

tion

desi

gn4.

1.4

Euro

rap

3.1

Road

de

sign

in

rela

tion

to

pats

and

cyc

le

way

s

3.1.

1 pa

vem

ent

road

re

latio

nshi

p

3.1.

2 Pa

vem

ent

cycl

eway

re

latio

nshi

p

5.1

man

agin

g tr

affic

flow

s fo

r sa

fety

5.1.

1 Va

riabl

e sp

eed

limits

5.1.

2 pe

rman

ent

spee

d lim

its5.

1.3

In v

ehic

le

info

rmat

ion

6.1

Dev

elop

in

sura

nce

indu

stry

re

latio

nshi

p w

ith

stak

ehol

ders

6.1.

1 In

sura

nce

licen

ce li

nks

6.1.

2 “p

ay a

s yo

u dr

ive”

in

sura

nce

8.1

Driv

er

beha

viou

r and

at

titud

e

8.1.

1 D

rivin

g st

yle.

8.1.

2 M

aint

enan

ce

of v

ehic

les

7. R

aise

traf

fic

Enfo

rcem

ent

7.1

Grea

ter

traf

fic

enfo

rcem

ent

7.1.

1 po

lice

patr

ols

7.1.

2 ca

mer

as7.

1.3

sate

llite

tr

acki

ng

VEHI

CLE

TECH

NOLO

GYIM

PRO

VIN

G IN

FRAS

TRUC

TURE

DRI

VER

PERF

ORM

ANCE

USE

CON

TRO

LS

9. V

ehic

le

Sele

ctio

n

VEHI

CLE

CHO

ICE

9.1

Vehi

cle

type

and

op

tions

8.1.

2 La

belli

ng a

nd

Info

rmat

ion

DfT

DfT

HA

HA

Con

Con

TAs

TAs

Co’s

Co’s

Me

Me

Polic

ePo

lice

LAs

LAs

VOSA

VOSA

EURO

EURO

DfT

DfT

HA

HA

Con

Con

LAs

LAs

HA

HA

DfT

DfT

HA

HA

LAs

LAs

Polic

ePo

lice

LAs

LAs

NGO

NGO

EURO

EURO

Med

iaM

edia

5.2

Use

Regu

latio

n

5.2.

1 Dr

iver

s Ho

urs

5.2.

2 Ta

chog

raph

s

5.2.

3O

ver

wei

ght/

heig

ht

EURO

EURO

HAHA VOSA

VOSA

DSA

DSA

S A

F E

T Y

S A

F E

T Y

Con

Con

ROLE

OF

THE

TRAF

FIC

COM

MIS

SIO

NER

S ?

IMPA

CT

OF

AUTO

MO

TIVE

SE

CTO

R

12.4 CO2

For passenger cars, through voluntary agreements with industry the focus on CO2 emission reduction is on new vehicle technology. For wider road transport, including cars demand management and use controls also offer opportunities to reduce the absolute levels of CO2 emissions generated by road transport.

PAGE 32

A greater understanding of the levers impacting on this scenario are particularly important in this context.

DfT

TAs

Co’s

Police

LAs

NGO

Media

VOSA

Con

ACAD

T’ury

DEFRA

DSA

VCA

EURO

Me

DTI

HA

RDA

Department for Transport

European Regulation Directive

Companies

Local Authorities

Treasury

Department for Food Environment and Rural Affairs

Driving Standards Agency

Vehicle and Operator Services Agency

Regional Development Agency

Highways Agency

Media and Press

Department for Trade and Industry

Police

Consultants

Individuals

Automobile Club of Germany

Non-Governmental Organisations

Traffic Authorities

Vehicle Certification Agency

ODPM

BWB

EST

Office of the Deputy Prime Minister

British Waterways Board

Energy Savings Trust

PAGE 33

Man

agin

g CO

2Em

issi

ons

OBJ

ECTI

VE

STRA

TEGY

STRA

TEGY

EN

ABLE

RS1. Im

prov

ing

CO2

thro

ugh

vehi

cle

tech

nolo

gy a

nd

desi

gn

3. C

hang

ing

the

Vehi

cle

parc

7. D

river

Ed

ucat

ion

4. Im

prov

e sp

atia

l pl

anni

ng5.

Man

age

th

e de

man

d fo

r roa

d tr

ansp

ort

2. F

uel

Dev

elop

men

t6.

Fis

cal a

nd

pric

ing

polic

y

1.1

Engi

nes

and

Emis

sion

Eq

uipm

ent

3.1

Enco

urag

e a

chan

ge to

mor

e fu

el e

ffic

ient

ve

hicl

es

1.1.

1 N

ew E

ngin

e an

d de

velo

pmen

t on

exi

stin

g te

chno

logy

1.1.

2 Ad

apta

tion

and

exte

nsio

n of

ne

w e

ngin

e te

chno

logy

-Hyb

rids

-St

op/S

tart

eng

ine

syst

ems

3.1.

1 Co

nsum

er

educ

atio

n3.

1.2

Gran

ts

and

ince

ntiv

es3.

1.3

Early

sc

rapp

age

sche

mes

3.1.

4 ea

rly

take

up

sche

mes

5.2.

1 H

ome/

wor

k bu

ilds

5.2.

2 O

ut o

f to

wn

shop

ping

de

velo

pmen

t cu

rtai

lmen

t

5.1.

1 w

orkp

lace

tr

avel

pla

nnin

g5.

1.2

Scho

ol

trav

el p

lans

5.1.

3 Pe

rson

alis

ed

trav

el p

lann

ing

5.1.

4

Publ

ic tr

ansp

ort

info

rmat

ion

and

mar

ketin

g5.

1.5

Trav

el

awar

enes

s ca

mpa

igns

5.1.

6 Ca

r Sh

arin

g

5.1.

7 Ca

r cl

ubs

5.1.

8 Te

lew

orki

ng5.

1.9

Tele

conf

eren

cing

5.1.

10 H

ome

Shop

ping

6.1

pric

e co

ntro

l of

tran

spor

t

6.1.

1 Ro

ad

pric

ing

2.1

Dev

elop

men

t of

alte

rnat

ive

fuel

s

2.1.

1 Te

chno

logy

an

d fis

cal

supp

ort

2.1.

2 D

istr

ibut

ion

netw

orks

2.1.

3 Av

aila

bilit

y

2.1.

4 En

ergy

st

rate

gy

7.1

Driv

er

choi

ce a

nd

beha

viou

r

6.1.

2 Fu

el D

uty

6.1.

3 Co

mpa

ny

Car

Taxa

tion

6.1.

4 Ve

hicl

e Ex

cise

Dut

y

6.1.

5 Ca

r Pa

rkin

g Ta

x

7.1.

2 Ed

ucat

ing

driv

er

DRI

VER

PERF

ORM

ANCE

VEH

ICLE

AN

D F

UEL

TECH

NO

LOG

YCH

ANGI

NG

THE

FLEE

TM

ANAG

EMEN

T TH

ROUG

H

INFR

ASTR

UCTU

RE

MAN

AGIN

G D

EMAN

DUS

E CO

NTR

OL

8. V

ehic

le

Sele

ctio

n

VEH

ICLE

CH

OIC

E

8.1

Prom

ote

a lo

w c

arbo

n ch

oice

8.1.

1 Gr

ants

an

d be

nefit

s

8.1.

2 La

belli

ng a

nd

Info

rmat

ion

5.2

Redu

ce

the

need

to

trav

el in

the

shop

/wor

k/ho

me

inte

rfac

e

5.1

Redu

ce

and

or re

-sc

hedu

le th

e de

man

d fo

r ro

ad tr

ansp

ort

4.1

Man

agin

g/S

moo

thin

g tr

affic

flo

ws

4.2

Spee

d m

anag

emen

t to

redu

ce

emis

sion

s

6.1.

6 Co

nges

tion

Char

ging

HA

HA

Co’s

Co’s

Me

Me

T’ur

yT’

ury

LAs

LAs

DfT

DfT

EURO

EURO

Med

iaM

edia

DSA

DSA

DfT

DfT

T’ur

yT’

ury

DfT

DfT

Co’s

Co’s

Co’s

Co’s

LAs

LAs

Me

Me

CO

CO

22

Co’s

Co’s

Me

Me

DTI

DTI

IMPA

CT O

F AU

TOM

OTI

VE

SECT

OR

VCA

VCA

EST

EST

12.5 Sustainable Mobility – Virtuous and Conflict

PAGE 34

The conflicts of sustainable mobility issues

1. The air quality/CO2reduction conflict

2. Traffic calming can create increases in CO2 and reductions in air quality through more stop/start motoring

3. Improving road space utilisation through road user charging may create an increase in off-peak demand on some routes or longer journeys to avoid charges

4. Improving road safety increases vehicle weight

Raising Air Quality Improving Road Space Utilisation

Improving Road Safety Reducing CO2Emissions

12

2

3

4

The conflicts of sustainable mobility issues

1. The air quality/CO2reduction conflict

2. Traffic calming can create increases in CO2 and reductions in air quality through more stop/start motoring

3. Improving road space utilisation through road user charging may create an increase in off-peak demand on some routes or longer journeys to avoid charges

4. Improving road safety increases vehicle weight

Raising Air Quality Improving Road Space Utilisation

Improving Road Safety Reducing CO2Emissions

12

2

3

4

The virtuous circle of sustainable mobility issues

1. Generating smoother traffic flows

2. Reduce CO2 through less stop/start and constant traffic speeds

3. Improve air quality at optimum engine operating parameters

4. Reduce accidents

Raising Air Quality Improving Road Space Utilisation

Improving Road Safety Reducing CO2Emissions

42

1

1

2

4

3

Published by:

The Society of Motor Manufacturers and Traders Limited, October 2005. SMMT and the SMMT logo are registered trademarks of SMMT Ltd.

© All rights reserved

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Further ContactsSignatory Name Web siteAudi www.volkswagen-environment.deBentley Motors www.bentleymotors.comBMW Group www.bmwgroup.comFord Motor Company www.ford.comGKN Driveline www.gknplc.comHonda UK Manufacturing www.mfg.honda.co.ukJaguar Cars www.jaguar.comLand Rover UK www.landrover.comLDV www.ldv.com

Nissan www.nissan.co.uk and www.nissan-global.com

Perkins Engines www.caterpillar.comPSA Peugeot Citroën Automobiles

www.sustainability.psa-peugeot-citroen.com

Rolls-Royce Motor Cars www.rolls-roycemotorcars.comSEAT www.volkswagen-environment.deSkoda Auto www.volkswagen-environment.deToyota www.toyotauk.com and www.toyota.co.jpVauxhall Motors www.vauxhall.co.ukVolvo Car UK www.volvocars.co.ukVolkswagen Group www.volkswagen-environment.deVolkswagen Commercial Vehicles www.volkswagen-environment.de

Organisation Web siteAuto Industry www.autoindustry.co.ukAutomotive Academy www.automotiveacademy.co.ukDepartment for Food Environment and Rural Affairs (DEFRA) www.defra.gov.uk/environment/sustainableDepartment for Transport (DfT) www.dft.gov.ukDepartment of Trade and Industry (DTI) www.dti.gov.uk/sustainability/ EC Sustainable Development www.europa.eu.int/comm/sustainableEnergy Savings Trust www.transportenergy.org.ukEnvironment Agency www.environment-agency.gov.ukEuropean Environment Agency www.eea.eu.intForesight Vehicle Programme www.foresightvehicle.org.ukLowCVP www.lowcvp.org.ukRoyal Society for the Prevention of Accidents www.rospa.org.ukSector Skills Council for the Automotive Sector www.automotive-skills.org.ukSMMT www.smmt.co.ukSustainable Development Research Network www.sd-research.org.ukThe Carbon Trust www.thecarbontrust.co.ukThe Sustainable Development Commission www.sd-commission.org.ukThe World Business Council for Sustainable Development (WBCSD) www.wbcsd.orgUK Climate Change Impact Programme www.ukcip.org.ukUK Commission for Integrated Transport www.cfit.gov.ukUK GOV SITE www.sustainable-development.gov.ukUN Division for Sustainable Development www.un.org/esa/sustdevUnited Kingdom Petroleum Industries Association (UKPIA) www.ukpia.comVehicle Certification Agency (VCA) www.vca.gov.uk

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PAGE 35