Global Automotive Industry Gets US$44 Billion Boost from Governments for Alternative Fuel Technologies

STUTTGART, Germany, May 12, 2010 - Close to US$44 billion in economic stimulus funds and other incentives
are being directed at the development of alternative fuel and advance
technology vehicles according to a new analysis by the Deloitte Touche
Tohmatsu (DTT) Global Manufacturing Industry group. The automotive analysis
reveals that economic stimulus packages and other government programs are
being emphasized in at least 13 markets.

"Consumer demand for greener vehicles as well as new regulations will
heavily influence the development and marketability of innovations in the
automotive industry," says Hans Roehm, DTT Global Manufacturing Industry
Leader. "Our analysis shows that the United States is leading in terms of
economic stimulus and other government incentives with an estimate of US$27.4
billion directed towards alternative fuel technologies such as EVs."

In 2009, Deutsche Bank estimated that global sales of electric, hybrid,
and other alternative fuel and advance technology vehicles stood at 1 million
and could rise to 1.3 million in 2010. According to J.D. Power and
Associates, sales of hybrid-electric vehicles could reach about 1.3 percent
of an estimated 67 million light vehicle sales this year. While hybrids and
electric vehicles (EVs) represent a small fraction of total cars on the road
today, the DTT Global Manufacturing Industry group estimates that by 2020,
electric vehicles and other "green" cars will represent up to a third of
total global sales in developed markets and up to 20 percent in urban areas
of emerging markets.

"The drive for e-mobility is on the rise and not only affects the
automotive industry, but also other related industries such as energy &
resources," explains Martin Hoelz, Deloitte Germany partner and Global
Automotive Affinity Group Leader for DTT Global Manufacturing Industry group.
"Incentives and government support range from tax breaks, cash bonuses, and
other sales incentives for consumers, to subsidies for research and
development (R&D) projects. As a result, consumers who have been keen to
adopt alternative technology vehicles will further benefit."

According to the Deloitte analysis, over the last 18 months, programs in
least 156 countries and regions encourage consumers to replace old vehicles
with new ones with scrappage bonus or "cash-for-clunkers" type incentives.
These include: Austria, Central and Eastern Europe, China, France, Germany,
Ireland, Italy, Japan, Mexico, Netherlands, Portugal, South Korea, Southeast
Asia, Spain, United Kingdom, and the United States."

Countries such as the United States, Australia, China, and France are
channeling investments towards R&D efforts. The United States Advanced
Technology Vehicles Manufacturing Loan Program totaling US$25 billion, for
example, offers grants and loans to support the local development of advanced
technology vehicles and associated components. Australia's Green Car Plan
will invest AUD$1.3 billion (US$1.2 billion) towards innovation and design of
more environmentally-friendly vehicles.

"In Germany for example, the government has set its sights to have one
million EVs on the road by 2020. It is supporting this with a EUR 500 million
(US$660 million) investment towards development of batteries and analysis of
how EVs can be introduced in certain regions of the country," adds Hoelz.

Similarly, the French government launched a EUR 1 billion (US$1.3
billion) program in October 2009 to put plan to have two million hybrid and
electrical vehicles on the road by 2020. The plan encompasses industrial
research, battery development and building a network of battery-charging
stations.

In the United Kingdom, the government announced that from 2011 it will
subsidize 25 percent of vehicle costs for electric and plug-in-electric
vehicles as a means to achieve lower carbon emissions - a total funding of
230 million pounds (US$350 million).

China has also stepped up its investments in alternative vehicle
technology. Announced last year, China's Revitalization and Readjustment
Program for the Automotive Industry is expected to cultivate e-mobility in
the world's largest automotive market. The program includes a ten billion
yuan (US$1.5 billion) government subsidy for three years to automakers who
upgrade their technology and develop alternative fuel vehicles.

"The future of e-mobility and the approach to technology advances in cars
is expected to be divided on regional lines," concludes Roehm. "Green
alternatives, such as EVs will likely find more consumer interest in
developed countries, while flex-fuels, such as ethanol and natural gas will
find wider adoption in emerging markets where the local climate or resource
base favors these fuels over petroleum. The outcome is likely to be a variety
of powertrain technologies in the market by 2020."

The analysis by the DTT Global Manufacturing Industry group shows that
the global automotive industry is expected to benefit directly from an
injection of around US$105 billion in economic stimulus funds, representing a
small percentage of the estimated US$4.3 trillion in economic stimulus
packages committed by various governments around the world.

For a copy of Driving e-mobility: Economic stimulus and other support
spur development of alternative vehicles, please visit
www.deloitte.com/manufacturing.

About the automotive analysis

A summary of the government economic stimulus efforts and incentives was
sourced and compiled using various external media sources based on
information available from around November 2008 to end of February 2010. For
the purpose of the analysis, 24 key automotive markets were evaluated
spanning countries in the Americas, Asia-Pacific, and Central and Western
European regions. Countries/markets included in the summary are: Argentina,
Australia, Austria, Brazil, Canada, Central and Eastern Europe, China,
Denmark, France, Germany, India, Ireland, Israel, Italy, Japan, Mexico,
Netherlands, Portugal, Russia, South Korea, South East Asia, Spain, United
Kingdom, and the United States.

Deloitte Touche Tohmatsu (DTT) Global Manufacturing Industry

The Global Manufacturing Industry group is comprised of more than 750
partners and 12,000 industry professionals in Deloitte member firms in over
45 countries. The team's deep industry knowledge, service line expertise, and
thought leadership allows them to solve complex business issues with member
firm clients in every corner of the globe. Deloitte member firms attract,
develop, and retain top professionals and instill a set of shared values
centered on integrity, value to clients, and commitment to each other and
strength from diversity. Deloitte member firms provide professional services
to 80% of the manufacturing industry companies on the Fortune Global 500(R).
For more information about DTT Global Manufacturing Industry, please visit
www.deloitte.com/manufacturing.

About Deloitte

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    Contacts:
    Isabel Milojevic
    Public Relations
    Deloitte Germany
    +49-89-29036-8825
    imilojevic@deloitte.de    

    Mimi Lee
    Global Marketing Director,
    Manufacturing
    Deloitte Touche Tohmatsu
    +1-212-492-3931
    mimlee@deloitte.com

Isabel Milojevic, Public Relations, Deloitte Germany, +49-89-29036-8825, imilojevic at deloitte.de ; Mimi Lee, Global Marketing Director, Manufacturing, Deloitte Touche Tohmatsu, +1-212-492-3931, mimlee at deloitte.com