[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 24.8.2006

SEC(2006) 1078

COMMISSION STAFF WORKING DOCUMENT

Accompanying document to theCOMMUNICATION FROM THE COMMISSION TO THE COUNCILAND THE EUROPEAN PARLIAMENT Implementing the Community Strategy to Reduce CO2 Emissions from Cars: Sixth annual Communication on the effectiveness of the strategy {COM(2006) 463 final} Monitoring of ACEA’s Commitment on CO 2 Emission Reductions from Passenger Cars (2004) Monitoring of JAMA’s Commitment on CO 2 Emission Reductions from Passenger Cars (2004) Monitoring of KAMA’s Commitment on CO 2 Emission Reductions from Passenger Cars (2004) Final reports 25 November 2005

Monitoring of ACEA’s Commitment on CO 2 Emission

Reductions from Passenger Cars

(2004)

Final version

25 November 2005

Joint Report

of the

European Automobile Manufacturers Association

and

the Commission Services

MONITORING OF ACEA COMMITMENT[1] ON CO 2 EMISSION REDUCTIONS FROM PASSENGER CARS

JOINT REPORT OF ACEA AND THE COMMISSION SERVICES [2]: YEAR 2004 REPORT

Note to the reader: ACEA’s Commitment as recognised by the European Commission in 1999 was undertaken at a time where the EU only included 15 Member States, and therefore its geographical scope is limited to the EU-15 – as a consequence, the present report only monitors the EU-15 situation.

ES SUMMARY OF PROGRESS IN DELIVERING THE COMMITMENT

E1 Trends in specific emissions of CO 2 (g/km)

In 2004 - using official EU data[3] - the average specific emissions of ACEA's new car fleet registered in the EU-15 was 161 g CO2/km. For petrol-fuelled cars, specific emissions were 170 g CO2/km; for diesel-fuelled cars, the corresponding value was 153 g/km and for alternative fuelled[4] passenger cars the value was 144 g CO2/km.

Compared to the 2003 situation, ACEA reduced the average specific CO2 emissions of its new car fleet (petrol + diesel) registered within the EU by 2 g/km, a reduction of 1.2%[5]. According to ACEA’s data, its average new car CO2 emissions in 2004 were 159g CO2/km (petrol + diesel); there was around a 1% deviation between official EU & ACEA (petrol + diesel) figures in 2004

Official EU data only became available in 2002, and were the basis against which the commitment is monitored. The present report (as was done in the 2002 & 2003 reports), includes ACEA’s data in addition to official EU-data for the most recent years. Since ACEA source provides data from 1995 on a consistent basis, these data can be used for information purposes regarding earlier years of the commitment.

Since 1995, ACEA has maintained an unbroken trend of CO2 emission reduction (see Figure 1).

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Figure 1: EU Trends of ACEA members’ fleet in average specific emissions of CO2.

Using ACEA's time-series between 1995 and 2001 and EU data since 2002, ACEA achieved an overall reduction in new car CO2 emissions of 13.0 %; petrol cars were down by 9.5 %, and diesel cars were down by 13.1 %. The three data points for 2002, 2003 and 2004, based on EU data, are coherent with ACEA’s data but differ slightly in absolute value terms.

E2 Trends in specific fuel consumption by fuel type (litres/100km)

Fuel consumption in terms of litres per 100 km (l/100km) has followed a similar downward profile to that of CO2 emissions. Over the 1995 to 2004 period, using ACEA's time-series data, average fuel consumption fell for new petrol and diesel cars combined from 7.6 l/100km to 6.4 l/100km[6] (EU official 2004 data: 6.4 l/100km). The corresponding consumption reductions for new petrol cars and new diesel cars were decreased from 7.9 l/100km to 7.1 l/100km (EU official 2004 data: 7.2 l/100km) and from 6.6 l/100km to 5.7 l/100km (EU official 2004 data: 5.8 l/100km), respectively (see Figure 2).

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Figure 2: Trends of ACEA members’ fleet in average specific fuel consumption (l/100km) by fuel

E3 Trends in physical fleet characteristics

Since 1995, ACEA has achieved these sizeable improvements in new car CO2 performance whilst overall increases in physical fleet characteristics have occurred. However, in 2004, EU official figures for car mass showed a decrease compared to 2003. And although average engine capacity and power increased in 2004, compared to 2003, disaggregating the capacity figures shows that diesel engine capacity decreased in 2004. Indeed, based on ACEA's time-series data, the engine capacity of diesel cars in 2004 fell to its lowest level in the entire monitoring period from 1995. This is a clear indication of the application of diesel technology in small cars.

E4 Technical developments introduced to reduce CO 2 emissions

In 2004 ACEA manufacturers continued to introduce new technological developments. Notable examples include: variable twin turbo technology and advanced injection systems on diesel engines, stop-start with regenerative braking; friction optimised rear-axle gearbox; clutch bridging 1st gear; and double clutch/direct shifting gearbox. In addition to these new developments, 2004 saw the increased application or continued improvement of vehicle technologies introduced in prior years.

Based on ACEA’s historical time-series and the more current EU data, ACEA technological developments, along with the launch of new product ranges, models and variants, reduced the CO2 emissions of ACEA’s new car fleet by 13.0 % over the 1995-2004 period.

E5 Brief overall assessment on progress in relation to the target

In 2004, ACEA again reduced the average CO2 emissions of its new car fleet: the average specific emissions of ACEA's new car fleet registered in the EU was 161 g CO2/km. Compared to 1995, CO2 emissions have been cut from 185 g CO2/km in 1995 to 161 g CO2/km in 2004.

ACEA has met all the following undertakings made in its Commitment:

- In 2000, many models were brought to market that emit 120 g CO2/km or less, and the number of such models has increased since then ;

- ACEA achieved, well ahead of time, the 2003 estimated intermediate target range of 165 -170 g/km;

- Before the end of 2003 ACEA submitted, to the Commission, its “Potential Reduction Review” statement on moving further towards the Community target of 120 g CO2/km in 2012;

- Each year ACEA has contributed to a transparent joint monitoring of the Commitment with the Commission Services.

In addition ACEA completed, jointly with the Commission Services, a “Major Review” of its Commitment -- in compliance with the provision of the Commitment; this Review was annexed to the 2003 joint Monitoring Report.

A particular feature of these ACEA achievements has been the sharp rise that has occurred in new registrations of cars emitting 120 g CO2/km or less. Using ACEA data, from a zero market share in the mid-1990s such cars achieved a 7.7% share in 2004, with sales of almost one million units. The volume and share of cars emitting 140 g CO2/km or less also rose considerably in 2004.

The 2004 monitoring report shows that ACEA is fully in line with its 2008 commitment. However, ACEA stresses that the 2008 target remains extremely ambitious, both technically and economically. To reach 140 g CO2/km in 2008, ACEA must achieve an annual average reduction rate of 3.3% a year during the remaining period of the Commitment.

The Commission services acknowledge that ACEA has until now met all its targets set out in its Commitment on CO2 emissions from passenger cars, although ACEA has not been able to provide firmer assurances than in the previous years that it will meet its 2008 target of 140 g CO2/km, despite the commitment period drawing closer to its end. They also acknowledge that ACEA has reconfirmed their firm determination to make the best possible efforts to live up to their CO2 Commitment. It is important to note that annual reduction rates required to meet the 140 g CO2/km target in the remainder of the commitment period have again increased in the 2004 reporting exercise, compared to previous years, and that major additional efforts will be required to meet the 140 g CO2/km target.

1 MONITORING OF TECHNOLOGICAL DEVELOPMENTS AFFECTING THE COMMITMENT

1.1 Commitment initiatives

1.1.1 Brief description of current R&D programmes

1.1.2 Other

The ACEA Commitment continues to ensure that right across the European automotive industry, CO2 reduction remains a high priority in R&D expenditures, as well as in product and process planning and development. The vast majority of this R&D effort is being undertaken independently, by each of the ACEA manufacturers freely pursuing their own policies and initiatives in this highly competitive area. It is not possible, for competitive reasons, to review individual manufacturer R&D programmes as part of the monitoring report.

In addition, however, ACEA and its sister body EUCAR are undertaking a collaborative, pre-competitive automotive R&D programme on medium and long-term technologies for CO2 reduction (as detailed in previous Joint Monitoring Reports). The programme reflects the research interests of the participating companies, and serves to illustrate key areas of R&D activity. It seeks to use the EU’s "Framework Programme" (FP) funding to launch collaborative projects between manufacturers, suppliers, research institutes and universities. Section 4.5 provides a summary of EUCAR's research activities in 2004.

1.2 Technological developments

1.2.1. Description of fuel efficiency characteristics of new technologies, alternative concepts

1.2.2. Availability of new technologies in the EU

1.2.3. Availability of alternative concepts passenger cars in the EU

1.2.4. Availability of low emission passenger cars (e.g. emitting 120 g CO 2 /km or less) in the EU

New technological developments introduced by one or more ACEA manufacturers in 2004 included:

- Variable Twin Turbo technology on diesel engines;

- Piezo-injection systems on diesel engines;

- Stop-start with regenerative braking;

- Friction optimised rear-axle gearbox;

- Clutch bridging 1st gear;

- Double clutch/Direct Shifting gearbox;

- Optimised generator;

- Regulated fuel pump.

New technologies tend to be implemented progressively, reflecting factors such as the need to link-into new model launches, and the need to phase-in range deployment. Also through R&D efforts, improvements to certain existing technologies are made. Therefore in addition to the above-mentioned new developments, 2004 saw the increased application or continued improvement of vehicle technologies introduced in prior years. In this regard, ACEA would draw specific attention to:

- Further penetration of gasoline direct injection (GDI) and other combustion efficiency technologies;

- Further penetration of 6 speed manual gearboxes and 6/7 speed automatic transmissions;

- Continued greater utilisation of lightweight design and materials;

- Further improvements in energy control management systems, including load levelling;

- Further improvements in engine thermo management and friction reduction;

- Continued technical development & offerings of alternative fuel vehicles (AFVs).

ACEA's technological developments, along with the launch of new product ranges, models & variants, have brought to market cars with attractive product attributes that have shifted the EU new car market towards enhanced fuel efficiency and reduced CO2 emissions.

In 2004, based on ACEA data, ACEA first registrations of (petrol + diesel) cars with CO2 levels of 140 g/km or less, rose to 29.6 % of new registrations (26.9% using EU data) -- up from a 25.9 % share in 2003 and a 2.6 % share in 1995. Further, ACEA continued to build on its Year 2000 achievement of the first of its CO2 commitments: "some members of ACEA will introduce in the EU market models emitting 120 g CO2/km or less". 2004 saw first registrations of cars emitting 120 g CO2/km or less rise by over 14 % on the prior year; though this increase was lower than in 2003, first registrations of such cars totalled almost one million units, and they achieved an impressive 8.3 % share of new registrations (7.7% using EU data), compared to only 0.7 % as recently as 1999.

In total, based on ACEA’s historical time-series and the more current EU data, CO2 reductions in the ACEA new car fleet of 13.0 % were achieved over the 1995-2004 period.

1.3 Description of market trends in physical fleet characteristics

See Sections E3 and 2.4

2. STATISTICAL MONITORING (1995-2004)

2.1 Trends in specific emissions of CO 2 (g/km)

In 2004, taking the official EU data, the average specific emissions of ACEA's new car fleet registered in the EU was 161 g CO2/km.

Compared to official EU 2003 data, ACEA reduced the average specific CO2 emissions of its new car fleet (petrol + diesel) registered within the EU by 2 g/km; a reduction of 1.2%. According to ACEA’s data, its average new car CO2 emissions in 2004 were 159g CO2/km (petrol + diesel); there was around a 1% deviation between official EU & ACEA (petrol + diesel) figures in 2004.

Since 1995, ACEA has maintained an unbroken trend of CO2 emission reduction. Between 1995 and 2004, using ACEA's historical time-series between 1995 and 2001 and EU data between 2002 and 2004, ACEA achieved an overall reduction in new car CO2 emissions of 13.0 %; petrol cars were down by 9.5 %, and diesel cars were down by 13.1 % (see Figure 3).

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Figure 3: ACEA's CO 2 Reduction Index (1995=100)

2.2 Number of newly registered passenger cars

Based on ACEA data, in 2004, ACEA new car registrations in the EU amounted to 11,745,829 units. However compared to 2001, there has been a fall in ACEA sales in the EU of more than 6.4 %[7] (see Figure 4). ACEA’s market share of total EU passenger cars reduced to 83% (including Rover) in 2004.

Petrol car registrations totalled 5,333,390 units in 2004, a 9.4 % decrease on the previous year. The number of diesel cars registered totalled 6,151,395 in 2004, an 11.6 % increase on 2003. The number of cars equipped with other fuel types (AFVs) more than halved compared to 2003, to return close 2002 levels (see Section 2.5).

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Figure 4: New Car Registrations by ACEA (million units)

2.3 Fleet composition

Figure 5 shows ACEA's fleet composition by CO2 categories for the year 2004, and the reference year 1995 (using ACEA data).

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Figure 5: ACEA's Fleet Composition by CO2 Categories (% share of total registrations) in 1995 and 2004 |

In 2004, ACEA's CO2-related fleet composition continued to show a strong move towards more fuel-efficient cars compared to the 1995 situation, with 140 g CO2/km or below cars achieving a 29.6 % share of total (petrol + diesel) registrations in 2004 (26.9% using EU data) -- up from 6.8 % in 1998, and only 2.6 % in 1995 (see Figure 6). Over the 1995 to 2004 period new registrations of such cars have multiplied more than 12-fold, and in 2004 there was over a 15% volume increase. By contrast, in 2004, there were continuing, sizeable falls in both the registrations and market share of cars with CO2 emissions of more than 160 g CO2/km. Registrations of these cars fell by over 6 % in 2004 on the prior year, and by over 48 % compared to 1995; as a proportion of total ACEA registrations, such cars decreased from 80.8 % in 1995, to 64.9 % in 1998 to reach 36.4 % in 2004 (40.3% using EU data).

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Figure 6: Change in ACEA's Fleet Composition by "aggregated CO 2 Categories"

Figure 7 shows how ACEA shares of registrations have developed by CO2 category over the 1995-2004 period. As can be seen, ACEA achieved a clearly identifiable "wave-effect" towards enhanced new car fuel efficiency.

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Figure 7: ACEA's "wave-effect" of CO 2 categories towards enhanced fuel efficiency (g/km)

2.4 EU trends in physical fleet characteristics

Through its technical developments (such as those set-out in Section 1.2), ACEA has achieved sizeable improvements in new car CO2 performance whilst increases in other physical fleet characteristics have occurred. Trends in physical characteristics of ACEA's new car fleet are shown in Figure 8 below, using ACEA time-series data (see also E3).

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Figures 8: Physical ACEA Fleet Characteristics (1995=100)

In 2004, using ACEA data, average car mass, engine power and engine capacity showed an increase (petrol + diesel). However, disaggregating the average car capacity figures shows that diesel engine capacity decreased in 2004. Indeed, based on ACEA's time-series data, the engine capacity of diesel cars in 2004 fell to its lowest level in the entire monitoring period from 1995. This is a clear indication of the application of diesel technology in small cars.

It should also be noted that certain physical characteristics of the new car fleet affecting CO2 emissions have altered during the Commitment period, and these are not fully reflected in the above data. Market changes have occurred, such as in relation to more automatic transmissions and an increase in the frontal area of cars. ACEA has presented to the Commission its views on the impact of market changes on new cars CO2 emissions within the time period of the Commitment.

2.5 Trends in new technologies in the EU

Within their CO2 reduction efforts, ACEA manufacturers continued their on-going technical development of alternative-fuelled vehicle (AFV) technologies; in 2004 ACEA sales of AFVs totalled 22,309 units, according to EU data (18,270 units according to ACEA data – see Figure 9 for AFV sales developments since 1995, based on ACEA data until 2002 included).

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Figure 9: ACEA sales of Alternative-Fuelled Vehicles (units) ( NB: the 2004 value has been added, and the 2003 value correceted, compared to same graph in previous joint report )

2.6 Trends in low emission passenger cars in the EU

In 2004 ACEA built further on its Year 2000 achievement of the first of its CO2 commitments ("some members of ACEA will introduce in the EU market models emitting 120 g CO2/km or less"). Using ACEA data, in 2004 ACEA first registrations of 120 g CO2/km or less cars rose by over 14 % on the prior year. Back in 2000, ACEA manufacturers achieved this commitment, by bringing to market more than 20 models that achieved 120 g CO2/km or less - with registrations of almost 160,000 units. In 2004, first registrations of cars emitting 120 g CO2/km or less reached 958,591 units (see Figure 10 for longer-term profile), and achieved a 8.3 % share of total new registrations (7.7% share using EU data).

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Figure 10: ACEA Registrations of Cars with CO 2 emissions of 120 g CO 2 /km or less

2.7 Trends in alternative concepts passenger cars in the EU

Nothing new to report.

2.8 Trends in innovative concepts passenger cars in the EU

Nothing new to report.

2.9 Brief description of the degree of occurrence of grey areas between M1 and N1 vehicles

Nothing to report (see Section 2.10).

2.10 Data sources, data methods and data confidence levels

The 2004 Joint CO2 Monitoring Report utilises data from the official EU monitoring scheme (1753/2000/EC), that is based on Member State submissions (see Annexes). This is the third year that data, submitted by Member States (slightly processed by the Commission[8]), have been the official basis for the monitoring process. Prior to 2002, ACEA purchased data from the French-based association AAA (Association Auxiliaire de l'Automobile), so as to enable the annual monitoring exercises to be undertaken.

In 2004, the variance between EU & ACEA data in terms of the overall average CO2 figure (petrol + diesel) was around 1%; although differences in some details exist, over the long-term data differences should narrow further. Official EU data are the basis against which the commitment is monitored. The present report (as was done in the 2002 & 2003 reports), includes ACEA’s data in addition to the official EU data for the most recent years. The ACEA source provides data from 1995 on a consistent basis, and these data can be used for information purposes regarding earlier years of the commitment.

2.11 Description of measurement issues for CO 2 emission factors

Nothing new to report.

2.12 Other issues

Nothing new to report.

3 KEY ASSUMPTIONS TO THE COMMITMENT

3.1 Availability of enabling fuels

Statement on implication for the Commitment and justification

Nothing new to report.

3.2 Distortion of competition

Statement on implication for the Commitment and justification

Nothing new to report.

3.3 Promotion of CO 2 efficient technologies

Statement on implication for the Commitment and justification

Nothing new to report.

3.4 Acceptance of innovation

Statement on implication for the Commitment and justification

Nothing new to report.

4 OTHER ISSUES

4.1 New measures affecting CO 2

Comment on impact of the issue and on implication for the Commitment

Nothing new to report.

4.2 New regulatory measures

Comment on impact of the issue and on implication for the Commitment

ACEA has presented to the Commission its findings concerning the impact of regulations or quasi-regulatory measures on new car CO2 emissions, and the Commission is currently investigating these findings.

4.3 Fiscal measures

Comment on impact of the issue and on implication for the Commitment

Nothing new to report.

4.4 Breakthrough technologies

Comment on impact of the issue and on implication for the Commitment

Nothing further to report (see Sections 1.1, 1.2 & 4.5).

4.5 Research Programmes: Description and future potential

Comment on impact of the issue and implications for the Commitment

EUCAR’s effort during 2003 to develop R&D proposals on CO2 reduction for the EU’s FP6 research programme was described in the 2003 report. More or less all of the CO2-related proposals were accepted for funding. During 2004 the focus has been to start up the 2003-accepted projects and to complement with proposals in areas not sufficiently covered.

In December 2004 the EUCAR ‘Fuels & Powertrain’ program included, in terms of projects running since early 2004:

- RENEW : Producing fuels from biomasses

- NICE : New Integrated Combustion System for Future Passenger Car Engines

- HyICE : Internal Combustion Engine fuelled by hydrogen

- StorHy : Storage system for hydrogen (gas, liquid, solid state)

- HyTRAN : Fuel Cell based propulsion system and Auxiliary Power Unit (diesel reformer)

HyWays: INFRASTRUCTURE ISSUES FOR THE HYDROGEN FUELLED ROAD TRANSPORT SYSTEM

PROPOSAL SUBMITTED FOR FUNDING, AS WELL AS UNDER DEVELOPMENT, INCLUDED:

- HySys : Components for Fuel Cell and Electric Powertrains

- Three (smaller) proposals on energy storage in Li-Ion batteries, super capacitors and on power electronics, which were submitted for funding during the autumn 2004; these complement the Fuel Cell and Hybrid powertrain projects.

- Hi-CEPS : Highly Integrated ICE-Electric Hybrid Vehicle

- EFFEX : Aftertreatment systems for future fuels and engines

- PAGODO : After-treatment for passenger cars

In addition to these powertrain-oriented projects the proposal ‘Super Light Car’ (which addresses low weight body in white through mixed material use) was submitted and accepted for funding during 2004.

4.6. Other measures - telematics, infrastructure, education

Comment on impact of the issue and on implication for the Commitment

Nothing new to report.

4.7. Economic situation of the car industry

Comment on impact of the issue and on implication for the Commitment

ACEA and the Commission agree that the performance of the automotive industry and its capability to invest in and sell technological innovations is dependent on a strong and healthy macro-economy. This also facilitates the market take-up of advanced, and typically more expensive, technologies. Since 2001, the European economic environment has been weak, and ACEA new car sales in the EU fell by more than 6.4% between 2001 and 2004. ACEA has communicated its overall competitiveness concerns to the European Commission, and points out the need for urgent action.

In their 2004 European Competitiveness Report[9], the Commission services paid particular attention to the situation of the automotive industry, and notably underlined that based on the performance on the global automotive market the EU industry was competitive, although it had to face major challenges such as comparatively higher labour costs and poorer productivity than its US and Japanese competitors. The report also stressed that world-wide demand to make vehicles safer and more environment-friendly will continue, and that competitiveness was also dependent on a coherent and cost-effective regulatory framework.

5 CONCLUSIONS

5.1. Progress statement on delivering the Commitment

Since 1995, ACEA has maintained an unbroken trend of CO2 emission reduction. In 2004, the average specific emissions of ACEA's new car fleet registered in the EU was 161 g CO2/km. Compared to the 1995 situation, CO2 emissions have been cut from 185 g CO2/km in 1995 to 161 g CO2/km in 2004.

ACEA also has met all the following undertakings made in its Commitment:

- In 2000, many models were brought to market of 120 g CO2/km or less, and the number of models has increased since then ;

- ACEA achieved, well ahead of time, the 2003 estimated intermediate target range of 165 -170 g/km;

- Before the end of 2003 ACEA submitted, to the Commission, its “Potential Reduction Review” statement on moving further towards the Community target of 120 g CO2/km in 2012;

- Each year ACEA has contributed to a transparent joint monitoring of the Commitment with the Commission Services.

In addition ACEA completed, jointly with the Commission Services, a “Major Review” of its Commitment -- in compliance with the provision of the Commitment; this Review was annexed to the 2003 joint Monitoring Report.

A particular feature of these ACEA achievements has been the sharp rise that has occurred in new registrations of cars emitting 120 g CO2/km or less. From a zero market share in the mid-1990s such cars achieved a 7.7% share in 2004, with sales of almost 900.000 units. The volume and share of cars emitting 140 g CO2/km or less also rose considerably in 2004.

5.2. Statement on expected future progress of the Commitment

The 2004 monitoring report shows that ACEA is fully in line with its 2008 commitment. However, ACEA stresses that the 2008 target remains extremely ambitious, both technically and economically. To reach 140 g CO2/km in 2008, ACEA must achieve an annual average reduction rate of 3.3% a year during the remaining period of the Commitment.

The Commission services acknowledge that ACEA has until now met all its targets set out in its Commitment on CO2 emissions from passenger cars, although ACEA has not been able to provide firmer assurances than in the previous years that it will meet its 2008 target of 140 g CO2/km, despite the commitment period drawing closer to its end. They also acknowledge that ACEA has reconfirmed their firm determination to make the best possible efforts to live up to their CO2 Commitment. It is important to note that annual reduction rates required to meet the 140 g CO2/km target in the remainder of the commitment period have again increased in the 2004 reporting exercise, compared to previous years, and that major additional efforts will be required to meet the 140 g CO2/km target.

DATA ANNEXES (2004)

(Note: EU official data; all CO 2 figures include a 0.7% adjustment for the cycle change)

A1: SPECIFIC FUEL EFFICIENCY (l/100km) AND EMISSIONS OF CO2 (g/km) AVERAGED OVER ALL NEWLY REGISTERED PASSENGER CARS FOR EACH DIFFERENT FUEL-TYPE, FOR THE EU AND EACH MEMBER STATE

A2: THE DISTRIBUTION OF CO2 EMISSIONS (g/km) IN THE NEW PASSENGER CAR FLEET FOR EACH DIFFERENT FUEL TYPE, FOR THE EU

A2: THE DISTRIBUTION OF CO2 EMISSIONS (g/km) IN THE NEW PASSENGER CAR FLEET FOR EACH DIFFERENT FUEL TYPE FOR THE EU-15[10] (corrected by 0.7.%)

A3: THE DISTRIBUTION OF AVERAGED MASS, POWER AND ENGINE CAPACITY OF NEW PASSENGER CARS FOR EACH FUEL TYPE FOR THE EU-15 AND EACH MEMBER STATE

A1: SPECIFIC FUEL EFFICIENCY (l/100km) AND EMISSIONS OF CO 2 (g/km)* AVERAGED OVER ALL NEWLY REGISTERED PASSENGER CARS

FOR EACH DIFFERENT FUEL-TYPE FOR THE EU 15 AND EACH MEMBER STATE

ACEA MEMBERS - 2004

Identified version | Unknown version |

Figure 5a : JAMA's Fleet Composition per CO2 Category in Shares of Total (petrol +diesel) in 1995 | Figure 5b : JAMA’s Fleet Composition per CO2 Category in Shares of Total (petrol +diesel) in 2004 |

Furthermore, as Figures 5a and 5b show, a significant increase in registrations can be seen in the category “121 to 140 g CO2/km”; there were 286,152 new registrations for this category in 2004, up from 20,055 in 1995. Figure 5c shows the rapid growth in the 140 g CO2/km or less and 141 g CO2/km to 160 g CO2/km ranges over the reporting period. Over the same period, there was a significant drop in the registration of vehicles in the 181g CO2/km to 200 g CO2/km range, as well as reduction in shares in all higher emissions ranges.

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Figure 5c: Change in JAMA's Fleet Composition by "aggregated CO 2 Categories"

2.4 EU trends in physical fleet characteristics

Using JAMA time-series data, changes in physical characteristics - engine power and vehicle mass - showed an upward trend from 2003 to 2004, continuing the overall trend present from 1995 (see Figures 6a and 6b). On the other hand, it shows only a marginal growth for the engine capacity. The average mass of new car registrations rose slightly from 1252 kg in 2003 to 1263 kg in 2004; engine capacity decreased slightly from 1688 cm3 to 1676 cm3; and power increased slightly from 79 to 80 kW. Average diesel-fuelled car mass was over a third higher than that for petrol and the capacity was 20 % higher for diesel-fuelled cars than for petrol cars.

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Figures 6a: Physical JAMA members’ fleet characteristics for 2003 &2004 (All based on JAMA data) | Figures 6b: Physical JAMA fleet characteristics (All based on JAMA data) |

Average total automobile mass was 1089 kg in 1995 and increased by 15.3% over the reporting period (1263 kg in 2004). Petrol automobiles' average mass has increased by 12.9 % within the reporting period, from 1032 kg in 1995 to 1192 kg in 2004. Diesel automobiles' average mass reached the minimum of 1447 kg in 1997 (against 1295 kg in 1995) but increased up to 1557 kg in 2001, then decreased again to 1422kg in 2004; i.e. a 0.2 % decrease over the reporting period from 1995 to 2004.

Total engine capacity has increased by 4.1 % within the reporting period, from 1621 cm3 in 1995 to 1688 cm3 in 2003, but it slightly decreased to 1676 in 2004. Petrol engine capacity increased up to 1563 (against 1543 cm3 in 1995), that is a peak in the reporting period. Diesel engine capacity decreased to 1932 cm3 capacity in 2004 (against 2298 cm3 in 1995). The overall trend shows only a marginal growth in average engine capacity over the reporting period.

Total engine power was 70 kW in 1995 and rose to 80 kW by 2004, an 11.4 % increase in EU average over this eight years period. Petrol engine power has increased from 70 kW in 1995 to 80 kW in 2004. Diesel engine power has steadily increased by 22.7 % within the reporting period, i.e. from 66 kW in 1995 to 81 kW in 2004.

Using JAMA time-series data, the physical characteristics increased over the period, however, average specific CO2 emissions dropped by 14.3 % in the same time (see Figure 6b).

JAMA is currently investigating concerning market changes. JAMA will present to the Commission its views on the impact of market changes on new cars CO2 emissions within the time period of the Commitment.

2.5 Trends in new technologies in the EU

JAMA's members have introduced several new technologies on the EU market over the monitoring period (see description in 1.2). Trends in sales vary across technologies, but overall, with the exception of direct injection diesel engines the shares of these technologies remain small. The shares of cars equipped with direct injection diesel engines have increased from 0 % to 29.5 % since their respective launch in 1998. Important technologies to mention are also the hybrid powertrains and idle stop mechanisms, that were introduced since 2000.

The trends for each technology, as well as the share of new passenger cars equipped with these technologies in total new passenger car sales by JAMA members, are shown in Figure 7. (Based on JAMA data)

Qualitative Description | Quantitative (Optional) |

Direct Injection for petrol engines was first marketed in 1997, has shown definite growth until 2000 and is receding since then. | [pic] |

Direct Injection for diesel engines was introduced to the market in 1998 and shows rapid growth from 1999 to 2004. | [pic] |

Figure 7: Trends in New Technologies launched by JAMA members on the EU market

2.6 Trends in low emission passenger cars in the EU

JAMA released its first “120 g CO2/km or less” car on the EU market in 1999. In 2000, JAMA has launched a 119 g CO2/km car and a 80 g CO2/km petrol-hybrid car. Furthermore, JAMA released a 104 g CO2/km petrol-hybrid model in the autumn of 2003 (see Section 1.2.4).

In 2004, 114808 JAMA cars with emissions of 120 g CO2/km or less were registered in the EU, up from 5544 cars in 1999[19]. Previously there had been no registrations of vehicles in this emissions category.

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Figure 8: JAMA members Sales of Vehicle with Specific Emission of 120 g CO 2 /km or less

(2004 based on EU data)

2.7 Trends in alternative concepts passenger cars in the EU

Nothing to report.

2.8 Trends in innovative concepts passenger cars in the EU

Nothing to report.

2.9 Brief Description of the degree of occurrence of Grey Areas between M1 and N1 vehicles

Based on own data JAMA estimates the number of M1 vehicles with a type approval for M1 and N1 which are potentially registered as N1 in the EU is equal to a total of 96053 vehicles, 5.3 % of total registrations in 2004.

2.10 Data methods, data sources, and data confidence levels

The 2004 Joint CO2 Monitoring Report is based on data from the official EU monitoring scheme (1753/2000/EC), that is based on Member State submissions (see Annexes). This is the third year that data submitted by Member States (slightly processed by the Commission[20]) have been the official basis for the monitoring process. As part of the monitoring exercise, JAMA and the Commission services agreed that the EU data as provided by Member States were of a very good quality. Some improvements with regard to the identification rates in a few Member States and the combination of registration data and corresponding CO2 values will be achieved when the CO2 values become part of the registration document, thus further increasing the quality of the data reported.

2.11 Description of measurement issues for CO 2 Emission Factors

The JAMA Commitment specified that new car CO2 emissions would be measured according to Directive 93/116/EC. Since the establishment of the JAMA Commitment, the mandatory type approval method of measuring CO2 emissions has been revised by Directive 99/100/EC. In 2003, JAMA and the Commission reached a consensus on a correction factor adjustment; it was agreed that a 0.7 % reduction should be applied to "measured" emissions to align them with the Commitment's basis. In this report, this adjustment has been applied to 2001 to 2004 data. For future years it was also agreed that this 0.7 % adjustment should be maintained unless new data are provided by the associations, that prove its inappropriateness.

2.12 Other Issues

Nothing to report.

3 KEY ASSUMPTIONS TO THE AGREEMENT

3.1 Availability of Enabling Fuels

Statement on implication for the Commitment and justification

Nothing to report

3.2 Distortion of Competition

Statement on implication for the Commitment and justification

Nothing to report.

3.3 Promotion of CO 2 efficient technologies

Statement on implication for the Commitment and justification

Nothing to report.

3.4 Acceptance of innovation

Statement on implication for the Commitment and justification

Nothing to report.

4 OTHER ISSUES

4.1 New Measures affecting CO 2

Comment on impact of the issue and on implication for the Commitment

Nothing to report.

4.2 New regulatory measures

Comment on impact of the issue and on implication for the Commitment

JAMA is sharing and supporting ACEA’s findings concerning the impact of regulations or quasi-regulations on new cars CO2 emissions.

4.3 Fiscal Measures

Comment on impact of the issue and on implication for the Commitment

Nothing to report.

4.4 Breakthrough technologies

Comment on impact of the issue and on implication for the Commitment

Nothing to report.

4.5 Research programmes: Description and Future Potential

Comment on impact of the issue and on implication for the Commitment

Nothing to report.

4.6 Other measures - telematics, infrastructure, education

Comment on impact of the issue and on implication for the Commitment

JAMA believes that measures such as the promotion of trade in purchase of new cars, presentations of correct and proper car maintenance methods, driver training, optimization of infrastructure, effective and efficient land use, and efforts to achieve a smoother traffic road will have a beneficial effect on CO2 reduction. JAMA thinks that such measures should therefore be embraced in a positive manner under government lead and with the co-operation of the industrial sectors involved.

4.7 Economic situation of the car industry

Comment on impact of the issue and on implication for the Commitment

Nothing to report.

5 CONCLUSIONS

5.1 Progress Statement on Delivering the Agreement

In 2002, JAMA achieved the intermediate target range of 165 - 175 g CO2/km. JAMA members continue to put on the market more CO2 efficient vehicles, both petrol and diesel, which are also more attractive to the customers.

In addition, JAMA completed a “Major Review” based on 2003 data and Article 10 of Decision 1753/2000/EC with the Commission. This Review was annexed to the 2003 Monitoring report.

In 2004, the number of new registered cars emitting less than 120 g/km CO2 rose considerably to reach 114.808 (74.679 in 2003). Similarly, the share of cars emitting 140 g/km CO2 or less continued to rise consistently in 2004.

5.2 Statement on Expected Future Progress of the Agreement

JAMA achieved the intermediate target range of 165 - 175 g CO2/km in 2002, one year earlier than estimated. The final target value of 140 g CO2/km in 2009 requires further serious effort to JAMA members. Emissions reductions will have to fall faster for the 2009 target (140 g CO2/km) to be met. In order to reach the 2009 target, annual emissions reductions will have to increase to an average reduction rate of around 3.5 % per year over the period until 2009.

Importantly, and as agreed upon, this target will mainly be achieved by technological developments affecting different car characteristics and market changes linked to these developments. Regarding technological developments, JAMA reiterated that its members would aim at a high share of new cars equipped with CO2 efficient technologies. Japanese automobile manufacturers have agreed to make every endeavor to contribute to the achievement of JAMA’s goals.

The 2004 monitoring report shows that JAMA is fully in line with its 2009 commitment. However, JAMA stresses that the 2009 target remains extremely ambitious, both technically and economically. To reach 140 g CO2/km in 2009, JAMA must achieve an annual average reduction rate of 3.5% a year during the remaining period of the Commitment.

The Commission services acknowledge that JAMA has until now met all its targets set out in its Commitment on CO2 emissions from passenger cars, although JAMA has not been able to provide firmer assurances than in the previous years that it will meet its 2009 target of 140 g CO2/km, despite the commitment period drawing closer to its end. They also acknowledge that JAMA has reconfirmed their firm determination to make the best possible efforts to live up to their CO2 Commitment. Nevertheless, it is important to note that annual reduction rates required to meet the 140 g CO2/km target in the remainder of the commitment period have again increased in the 2004 reporting exercise, compared to previous years, and that major additional efforts will be required to meet the 140 g CO2/km target.

JAMA

Data Annexes

DATA ANNEXES (2004)

A1: SPECIFIC FUEL EFFICIENCY (L/100km) AND EMISSIONS OF CO2 (g/km) AVERAGED OVER ALL NEWLY REGISTERED PASSENGER CARS FOR EACH DIFFERENT FUEL-TYPE, FOR THE EU AND EACH MEMBER STATE

A2: THE DISTRIBUTION OF CO2 EMISSIONS (g/km) IN THE NEW PASSENGER CAR FLEET FOR EACH DIFFERENT FUEL TYPE, FOR THE EU

A3: THE DISTRIBUTION OF AVERAGED POWER AND ENGINE CAPACITY OF NEW PASSENGER CARS FOR EACH FUEL TYPE FOR THE EU-15 AND EACH MEMBER STATE

A1: SPECIFIC FUEL EFFICIENCY (l/100km) AND EMISSIONS OF CO2 (g/km)* AVERAGED OVER ALL NEWLY REGISTERED PASSENGER CARS FOR EACH DIFFERENT FUEL-TYPE FOR THE EU 15 AND EACH MEMBER STATE

JAMA MEMBERS – 2004

Identified version | Unknown version |

Fuel / Year | 2001 | 2002 | 2003* | 2004* |

Petrol | 68 | 51 | 37 | 35 |

Diesel | 223 | 169 | 125 | 113 |

*Excludes France, which did not report in 2003 and 2004.

Although KAMA had preferred to see 30 ppm or 10 ppm fuels homogeneously made available on the EU market, it is in general satisfied with the fuel qualities provided in the review period.

Automotive Regulations

The Commitment was made in 1999. According to the Commission, since that point of time, in the review period no new EU regulation relevant for CO2 emissions came into effect.

KAMA is currently investigating this issue focusing on the potential impacts of legislation on emissions, safety, recycling and other legislative developments over the whole Commitment period as well as their implications for the move towards the Community objective of 120 g/km in 2012.

Technologies and innovations

Over the 1995 to 2004 period, KAMA members introduced a wide range of the newly developed technologies into the EU market to reduce CO2 emissions. These technologies cover all the vehicle engineering fields such as the improvement of engine efficiency, improvement of transmission, reduction of vehicle weight, reduction of air resistance, improvement of rolling resistance, etc. Major applications of technical developments introduced by KAMA to reduce CO2 emissions are as follows:

- Improvement of engine efficiency

With the help of electronically controlled fuel injection system, KAMA members were able to introduce the quiet and smooth operating diesel engines, so called HSDI, from 2001, and to contribute to extending the share of diesel cars in the EU market. This technology has been applied mainly to the diesel engines in the SUV segments and contributed to the large reduction of CO2 emission. The HSDI diesel engines among total newly registered KAMA cars in EU market reached the share of 29.1 % in 2004 and is expected to steadily increase and contribute to a remarkable reduction of CO2 in the EU market. Moreover, the share of small diesel cars in the EU market could be remarkably increased in 2003 and 2004 owing to the benefits of the HSDI technology.

Besides the HSDI diesel engines, there are many other technologies that contributed to improve the engine efficiency, as described below:

- Variable geometry intake system

- CVVT (Continuously Variable Valve Timing)

- Variable geometry turbocharger

- Advanced knock control

- Fuel-cut range increase

- Cooled EGR (Exhaust Gas Recirculation)

- Swirl control system

- Engine friction reduction

- Advanced torque based actuator control

- Improvement of transmission

The efficiency and speed of transmission are also major factors to be improved so as to reduce CO2 emissions. KAMA members launched passenger cars with the line-up variable control system for the improvement of efficiency with 6-speed manual transmission onto the EU market in 2002, and also developed the initial models of 5 & 6-speed automatic transmission, and FGR (Final Gear Ratio) tuning for the EU market in recent period.

- FGR tuning

- Automatic transmission efficiency improvement (5 & 6-speed)

- Reduction of vehicle weight

The vehicle weight is one of the major determinants of CO2 emissions, and the increase of weight may offset the benefits achieved by the introduction of new technologies to reduce the CO2 emissions. Hence, KAMA members applied the modern light weight materials such as high strength low alloy steel and/or aluminium into the vehicle body, the engine and the other subsidiary parts. As a result, the introduction of vehicle weight reduction technologies contributed to the reduction of the total specific CO2 emissions during the monitoring period, although overall the average vehicle mass of new cars sold by KAMA increased over that period.

- Improvement of vehicle resistance

KAMA members launched the motor driven power steering into the EU market in 2003, and increased its market penetration in 2004. Aerodynamic drag may be improved by reducing drag coefficient, which has been decreased significantly in recent years through extended use of vehicle wind tunnel during research and development. Tire rolling resistance has been also decreased notably with the application of low friction silica tire taking into account handling under a variety of road conditions.

- Motor driven power steering

- Drag reduction

- Low friction tire

In 2004, the share of low CO2 cars emitting less than 160 g CO2/km reached 54.1 % regarding the fleet composition by the outstanding endeavour and the will of KAMA members to meet the Commitment.

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Section 4: Other factors beside technological developments

DLR[33] has been contracted by the Commission in order to investigate whether other factors beside technological developments have contributed to the observed reductions of the CO2 emissions of new passenger cars between 1995 and 2003. For this purpose DLR applied descriptive and econometric methods. The conclusions drawn from these investigations are presented below, and are considered to be also valid for the year 2004.

Technical influences

Remarkable changes in the use of technologies for the reduction of the fuel consumption for new passenger cars have been observed within the period under investigation. In this regard the analysis of DLR confirms the observations presented under Section 3 for the period 1995-2004. The identified improvement in diesel technology is much than in petrol technology. While the identified improvement in the individual segments ranges between 0.1% and 17.6% for petrol vehicles, it ranges between 5.5% and 20.6% for diesel vehicles.

Non-technical influences

Non-technical influences with a potential to affect the behaviour of car purchasers were analysed: politically motivated measures such as taxes and car labelling but also socio-economic trends, e.g. fuel prices, per capita GDP, and other factors like the model range demanded by consumers and/or offered by the manufacturers. The effects of these variables on KAMA’s average specific CO2 emissions were analysed with the following results:

- Influences with respect to the model range

Concerning KAMA’s car fleet, some changes have been observed between 1996 and 2004[34]. Most significant is the growth of segment B (Small cars), which represented only 0.02 % of all new registrations in 1996 but 29.7 % in 2004. In addition a considerable growth appeared for segment A (Mini cars) from 3.3 % to 20.9 %, as well as for MPV (Multi Purpose Vehicles), from 5.7 % to 18.6 %, and for SUV from 4.2 % to 16.4 %.

On the other hand, a steep decreasing trend is seen for the share of segment C (Lower Medium cars) from 72.0 % of all new registrations in 1996 to 5.8 % in 2004. The segment D (Medium cars) also shows the significant decrease from 14.7 % to 5.1 %.

If the segment structure had not changed between 1996 and 2004, but the specific emissions per segment had developed according to the actual observed values (including the progressive dieselisation of the fleet), the average CO2 emission of KAMA’s fleet for 2004 would have been 6.4 gCO2/km lower than the monitored value (translating into an hypothetical 161.6 gCO2/km compared to the observed value of 168.0 gCO2/km in 2004). However in 1996 KAMA’s car fleet was highly dominated by segment C (Lower medium cars) representing more than 70% of its fleet. KAMA members have endeavoured and managed to develop their offer in a more balanced way across the various segment ranges, and the 1996-2004 comparison at constant segment structure therefore has mainly an illustrative value. This widening of the offer has notably resulted in a fair increase of the SUV and MPV segments, as outlined above.

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- Influences with respect to car labelling

The effectiveness of the car labelling Directive 1999/94/EC is currently being assessed as part of the implementation of Article 9 of this Directive. Although no final assessment is available at this point of time, all information indicates that the car labelling Directive had, up to now, only negligible effects on consumer’s car choice and did therefore not contribute to the observed reduction in specific CO2 emissions.

- Influences with respect to the GDP per capita, fuel prices and circulation taxes:

Several attributes were included as variables in the models and, after a pre-assessment of results, the parameters per capita GDP, fuel prices and circulation taxes were selected for more detailed scenario analysis to understand the extent to which changes in these variables could affect average CO2 emissions. DLR’s analysis calculates differences in hypothetical CO2 values that would result in that year depending on different values for per capita GDP, fuel prices and circulation taxes. Overall, the investigation finds some evidence of positive and negative influences of non-technical factors on average CO2 emissions in the period analysed. Given the magnitude and mixture of effects, as well as the associated uncertainties, DLR could not identify any significant influence of the pre-selected variables.

In summing up all the factors and building upon DLR’s findings, there is no evidence that the observed total reductions of KAMA’s CO2 fleet average was significantly influenced by other factors than technological developments.

Section 5: Outlook

KAMA used the occasion of the “Major Review” to draw attention to a number of aspects which it considers important for the achievement of the 140 g CO2/km target in 2009:

- Safety measures: KAMA aims at complying with EURO NCAP and expects that even more requirements concerning safety are likely in the future; that may act as negative factors on the reduction of CO2.

- Emission regulations: EURO 4 was known when the Commitment was signed and took effect in 2005. However, future regulations (EURO 5) might have negative effects on CO2 emissions, especially with regard to the fuel-efficiency of diesel vehicles.

In addition KAMA mentioned that regulations concerning recycling and noise may lead to an increase of CO2 emissions either by impacting on some fuel efficiency parameters like combustion process and air resistance or by increasing the weight of the vehicle.

The Commission and KAMA agree that the possible repercussions of such regulations are and will be taken into account in the monitoring process.

Section 6: Conclusions

The Commission and KAMA agree that, over the 1995-2004 period:

1. The reduction in specific CO2 emissions has been overwhelmingly achieved by technological developments. The small market changes observed did not influence the CO2 emissions significantly. In any case it is very difficult to distinguish between market changes caused by technology and market changes caused by other factors, e.g. general consumer behaviour, economic situation, fuel prices, fiscal measures, availability of consumer information, mainly for two reasons: the market changes observed in the period 1995 to 2004 are relatively small and CO2 relevant technological developments penetrated practically all vehicle categories.

2. In the light of these findings it can be stated that all applicable undertakings specified in KAMA’s CO2 Commitment have been met, and in some cases over achieved.

3. The assumptions listed by KAMA in its Commitment have been met and the environment under which its members are operating has not prevented KAMA from meeting its Commitment.

d) KAMA draws attention to a number of points which are of importance for the delivery of the 140 g CO2/km target in 2009.

In summary, KAMA and the Commission conclude that KAMA has, during the period 1995 to 2004, met all the obligations stated in their Commitment. Despite having gone through a hard economic situation during the first years of the commitment period, the Korean car industries have delivered a sizeable contribution to the EU’s strategy for reducing greenhouse gas emissions and to its Kyoto reduction objectives.

[1] As recognized by the European Commission in the Recommendation of 5 February 1999 on the reduction of CO2 emissions from passenger cars (1999/125/EC) . Hereafter referred to as “The Commitment”.

[2] Hereafter often referred to as “The Commission”.

[3] According to the Joint Monitoring System prior 1995-2001 monitoring was based on data provided by ACEA which are broadly similar to those specified in Annex I of Decision 1753/2000/EC. In 2002, for the first time, official EU data were used in the joint monitoring report -- based on data delivered by Member States under Decision 1753/2000/EC. In the 2004 report ACEA data continues to be used in certain places, where official EU data is not available/inappropriate (such as where consistent longer-term trends are needed to contribute to a better understanding of CO2 reduction developments).

[4] These are all vehicles not using diesel or petrol, e.g. LPG, CNG or electric power.

[5] All percentage figures are based on unrounded numbers.

[6] The following conversion factors were used for the calculation of specific fuel consumption (l/100km) from specific CO2 emissions (g/km): petrol 23.7, diesel 26.6.

[7] All figures given in this chapter are based on ACEA data.

[8] The cycle change correction of 0.7 % has been applied, and potentially erroneous allocations of vehicles to CO2 classes, involving a few hundred vehicles, have been suppressed.

[9] SEC(2004)1397, available at http://europa.eu.int/comm/enterprise/enterprise_policy/competitiveness/doc/comprep_2004_en.pdf

[10] except Greece, Netherlands and UK

[11] As recognized by the European Commission in the Recommendation of 13 April 2000 on the reduction of CO2 emissions from passenger cars (2000/304/EC) . Hereafter referred to as “The Commitment”

[12] Hereafter often referred to as “The Commission”

[13] All percentage figures are based on rounded numbers.

[14] The following conversion factors were used for the calculation of specific fuel consumption (l/100km) from specific CO2 emissions (g/km): petrol 23.7, diesel 26.6.

[15] JAMA’s data are based on the kerb weight of the vehicle.

[16] Taking 1995 JAMA data and 2004 official data.

[17] Taking 1995 JAMA data and 2004 official data.

[18] Taking 1995 JAMA data and 2004 official data.

[19] Taking 1999 JAMA data and 2004 official data.

[20] The cycle change correction of 0.7 % has been applied, and potentially erroneous allocations of vehicles to CO2 classes, involving a few hundred vehicles, have been suppressed.

[21] KAMA represents the Korea Automobile Manufacturers Association of Hyundai Motor Company, KIA Motors Corporation, GM Daewoo Auto & Technology Company, Renault Samsung Motor Company, and Ssangyong Motor Company.

[22] As recognized by the European Commission in the Recommendation of 13 April 2000 on the reduction of CO2 emissions from passenger cars (2000/303/EC). Hereafter referred to as “The Commitment”.

[23] Hereafter often referred to as “The Commission”

[24] All CO2 performance figures from 2001 for KAMA have been corrected by 0.7% under the consideration of new test cycle, as to bring them in line with the amended Directive 93/116/EC on which the Commitment is based (see Section 2.11).

[25] All percentage figures are based on rounded numbers.

[26] For 2002, 2003 and 2004, official EU data are used in the Joint Monitoring Report since, according to the Joint Monitoring System, the monitoring has to be based on the data delivered under Decision 1753/2000EC. According to this scheme prior 1995-2001 monitoring was based on data provided by KAMA.

[27] The following conversion factors were used for the calculation of specific fuel consumption (l/100km) from specific CO2 emission (g/km): petrol 23.7 and diesel 26.6

[28] The rates used in Section 2.5 are based on the KAMA’s estimation number of cars shipped to the EU region in the monitoring period.

[29] The Directive in force at the time of the KAMA Commitment.

[30] Decision No 1753/2000/EC of the European Parliament and of the Council of 22 June 2000 establishing a scheme to monitor the average specific emissions of CO2 from new passenger cars. OJ L 202 , 10/08/2000 P. 0001 – 0013.

[31] DLR service contract contribution: “Preparation of the 2003 review of the commitment of car manufacturers to reduce CO2 emissions from M1 vehicles - Final Report of Task A (Article 10)”

[32] updated data based on COM(2004 )310.

[33] German Aerospace Centre - Institute of Transport Research: ” Preparation of the 2003 review of the commitment of car manufacturers to reduce CO 2 emissions from M1 vehicles”.

[34] Due to high inconsistencies, data for 1995 could not be used.