The
Speaking at the press launch of Volvo’s new range of DRIVe low emission cars, Potts said that manufacturers were struggling to balance the government’s long term carbon targets with short term consumer needs. The result, according to Potts, has been a lack of investment in green processes at the cost of the
Potts said: ‘The problem is that not many people who buy cars are interested in the manufacturing process. It doesn’t sell vehicles and until people look at the bigger picture, manufacturers won’t have an incentive to change their practices.’
He added: ‘The drive towards lowering CO2 has definitely made Volvo spend a lot more money on modifying cars and invest in greener manufacturing facilities. But there are many companies that think these government initiatives are an absolute pain because in a recession, additional expenses can send a company into bankruptcy.’
With cutting costs high on the agenda of many companies, Potts believes the introduction of a carbon tax will force manufacturers to use cheaper solutions to meet targets. This could mean reduced investment in facilities and training in favour of producing cars that allow consumers to benefit from green tax breaks.
‘For the ten reasons someone buys a car, the environment is one below the CD player, said Potts. ‘If you look at the sales of the DRIVe vehicles they surprised Volvo that they sold so well. I think the real reason is that they are fantastic on tax.’
However, Potts believes that despite manufacturers intentions, progress in producing greener vehicles will be halted as a result of misplaced investment. He hails hydrogen as the future fuel for the automotive industry but argues that without training engineers to develop the technology,
‘Technology and engineering will always find solutions, but in
‘I think what we need to do is have realistic targets, make sure we can achieve them, make sure the public understands what environmental taxes are and increase investment in green technologies that are going to work.’
Ellie Zolfagharifard
This is a major issue for industry generally, particularly the introduction of yet another tax on industry.
It would appear that the current government have no idea of what industry needs, and that is a reduction of taxation and costs generally to remain competitive in a world market. But, British industry is overburdened with bureaucracy, taxation, and many other amounts of petty legislation, which costs industry time and money, yet achieves nothing.
Government has to accept that many other countries do not have such legislation and bureaucracy along with considerably cheaper labour costs, mainly because they have little regard for the environment. Such problems need to be redressed, and allow British industry to close the gap in manufacturing costs, reduce imports, and allow more exports, as well as dealing with the country’s balance of payments.