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This tariff increase will have serious ramifications for the
competitiveness of the Australian automotive industry, and the car-buying public
in general, says Audi’s managing director, Joerg Hofmann.
“The Federal Government’s surprise tax increase could see the
price of premium cars rise unnecessarily, affecting families and individuals who
are prepared to invest in motor vehicles with the latest technological
innovations – from advanced safety and driver assistance systems, to cleaner,
greener engine technology,” Hofmann said.
Hofmann says he trusts that the Prime Minister will,
nonetheless, stick to the Government’s scheduled reduction in tariffs on
imported cars from 10 percent to 5 percent from 2010.
“I hope Mr Rudd will honour the original agreement, reducing
import tariffs in 2010,” Mr Hofmann said.
Citing the tax hike as ‘disappointing’, Hofmann says that for
over 100 years, Audi has been at the forefront of innovation, pioneering key
technologies which are today taken for granted, even in mass market vehicles.
The company was the first to introduce now basic safety features like safety
glass, and even pioneered side impact and rollover testing.
“These kinds of technological advancements will be at risk
with the Government’s proposed new, higher tax rate on luxury cars,” Hofmann
said.
“For years now, our global headquarters have also invested
heavily in important research and development. One key development has been the
systematic reduction in fuel consumption and carbon emissions for its vehicles.
This year, Audi will introduce the world’s cleanest diesel technology in its new
A4 3.0 TDI quattro sedan – a new car with a 90 percent reduction in NOx
emissions.
“The Government has a direct interest in making cars safer and
cleaner, yet has effectively put this kind of technology at risk for Australian
buyers, a move that seems directly at odds with its green agenda.
“The decision may also put Australia’s competitiveness into
question. At a time when free trade agreements are being made globally,
Australia risks isolating itself as the only country with a Luxury Car Tax
LCT.
“If this tax increase is truly intended to help reduce
inflationary spending, then where is the tax hike on expensive jewellery, luxury
powerboats or private jets?,” Mr Hofmann added.
Demonstrating it’s commitment to the Australian market, late
last year Audi announced its plan to invest more than $150 million in its retail
network. The company is directly responsible for more than 800 jobs.
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