BAT News Release:
B.A.T News ...Keeping the World Informed
For Immediate Release:ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Contact:ÿ Bill Wason
February 24, 1998ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Ph) (818) 565-5569, fax 565-5559
SALES TAX EXEMPTION FORÿ
SUPER-EFFICIENT CARS PROPOSED IN CALIFORNIA
Senator Jack O'Connell Introduces Bill, BAT International is Sponsor
SACRAMENTO,ÿÿ Senator Jack O'Connell introduced legislation today in the California Senate that would eliminate state sales tax on new motor vehicles that exceed 64 miles per gallon fuel economy, as determined by the U.S. EPA mileage rating (bill SB2107).ÿ Zero emission vehicles are automatically included in the proposed sales tax exemption.ÿ If this is enacted it would go into effect in 1999 and would sunset at the end of 2002. BAT International (BAAT:OTC) introduced the bill concept, (i.e. Sponsored the bill) to Senator O'Connell's office, and will be actively seeking support for the bill from industry organizations and individuals.
Eliminating state sales tax would provide a significant incentive for the development of super-efficient vehicles, particularly in the near term (state sales tax is approximately 7.25%, average cost of vehicles is approximately $20,000).ÿ California is the most important market for motor vehicles in the world because it establishes many consumer trends and has been very aggressive in setting emission standards.ÿÿ
Many companies in California and worldwide are developing high fuel economy vehicles or drive system technology.ÿ BAT International has recently demonstrated super-efficient Dolphin Pulse Charged engine technology that resulted in a fuel efficiency of 94 miles per gallon at a constant speed of 40 miles per hour.ÿ Further dynamometer and emissions testing is expected to verify that the vehicle can greatly exceed an EPA fuel economy rating of 64 miles per gallon.ÿ BAT is planning to license the technology to vehicle and engine manufacturers and believes the technology could very quickly be incorporated in engine manufacturing with little overall impact on engine cost in high volume production.ÿ Other auto companies developing high efficiency vehicles that would likely qualify for the incentive include Toyota, which has a hybrid electric vehicle already being sold in Japan that gets 67 miles per gallon, and Audi, which is planning to introduce next year an all aluminum diesel vehicle that gets 68 miles per gallon.ÿ General Motors and Honda have also suggested they might introduce a hybrid electric or super-efficient vehicles in 2001-2002 and other auto companies are working on prototype vehicles.ÿ All of the major auto companies are also introducing zero emission vehicles in the California marketplace that would automatically qualify for the sales tax incentive.
Benefits to the state would be significant for many reasons.ÿ California has been a leading developer of advanced transportation technologies that could lead to significant job growth if technology developed by California companies is used by major auto companies.ÿ Improved fuel economy also often results in lower emissions, which will lead to reduced air pollution.ÿ Health impacts from poor air quality and restrictions on businesses from air pollution regulations also impact the California economy.ÿ Potential impacts from climate change could be partially mitigated if super-efficient vehicles capture a significant portion of the new car market.ÿ California consumers buying super-efficient vehicles would enjoy lower fuel bills.ÿ Finally, all California consumers would benefit from lower gasoline or diesel bills, since early introduction of super-efficient vehicles would reduce demand for imported oil and help provide steady and abundant supplies of oil to keep gasoline and diesel prices stable.ÿÿ
Numerous federal and international regulations and incentives are also affecting demand for super-efficient vehicle technology and decisions by auto companies concerning new technology product introduction.ÿ The Clinton Administration has proposed a $3000 to $4000 rebate or tax credit for the purchase of super-efficient vehicles as part of the State of the Union address.ÿ European Union delegates are in discussions with the European auto makers concerning very high Corporate Average Fuel Economy standards in an effort to reduce CO2 emissions.ÿ California efforts to implement a sales tax exemption for super-efficient vehicles will further complement efforts to address global environmental problems such as climate change.ÿ These combined initiatives could lead to dramatic and rapid changes in timetables for introduction of "supercars" to the global automotive consumer and provide cost-effective solutions to energy and environmental problems. |
