As the global debate on climate change continues, members of the Alliance believe it is prudent to reduce emissions, including carbon dioxide, from our plants, products, and processes.

The climate issue is a global one that must be addressed as a shared responsibility of government, industry, and individuals. The Alliance supports the development of new technologies and the deployment of cost-effective energy strategies in all sectors to improve energy efficiency and reduce greenhouse gas (GHG) emissions. The Alliance also supports the President's U.S. climate change strategy announced on February 14, 2002, and we agree with the President that it is critical to continue to sustain economic growth. Only through sustained economic growth will both the public and private sectors be capable of financing investment in new, clean energy technologies.

We accept the President's challenge to reduce GHG intensity and improve the energy efficiency of our manufacturing facilities, and we will participate in DOE's Business Challenge program.

• The Alliance supports a single national voluntary reporting registry under the Department of Energy (DOE). Building on the reporting that some members are already engaged in, within one year all Alliance members will be reporting GHG emissions from their manufacturing facilities.
• Alliance member companies commit to achieve at least a 10 percent reduction in GHG emissions from their U.S. automotive manufacturing facilities, based on U.S. vehicle production, by 2012 from a base year of 2002.
• Progress toward this goal can be measured by DOE based on 1605(b) registry reporting by individual Alliance members of their emissions and avoidance, reduction, and sequestration activities.
• Alliance members will continue to support government/industry partnerships that further the development of practical and affordable energy efficiency solutions.

Regarding the energy efficiency of our products, automakers will continue to work constructively with NHTSA to improve the fuel economy of America's motor vehicles.

The constant evolution of technology and its introduction into the market will help us continue to produce ever cleaner, more fuel-efficient vehicles. Industry's aggressive investment in pursuit of fuel cell vehicles, hydrogen vehicles, hybrid electric vehicles, clean diesels, and other advanced design vehicles exemplifies the commitment to move away from dependence on petroleum-based fuels.

The Alliance of Automobile Manufacturers is a trade association of 10 car and light truck manufacturers who account for more than 90 percent of U.S. vehicle sales. Member companies, which include BMW Group, DaimlerChrysler, Ford Motor Company, General Motors, Mazda, Mitsubishi Motors, Nissan, Porsche, Toyota and Volkswagen, employ more than 620,000 Americans at 250 facilities in 35 states. For more information, visit the Alliance website at www.autoalliance.org.

February 12, 2003