WANADA Bulletin # 4-07 *** Special Report*** January 26, 2007

D aimlerChrysler Chairman Dieter Zetsche opened The

2007 Washington Auto Show (WAS) International Media Day by calling energy “a top public policy issue for this nation.” He said that reducing depend-ence on oil and emissions of CO2 “must start now.” But in reaching those goals he sounded a theme that was reiterated by automakers throughout the day: “The best pro-gress toward policy objectives comes when lawmakers and auto-makers work closely together to achieve the desired result.” Zetsche pointed out that Europe has already achieved a 50 percent improvement in fuel economy with a fleet average of 36 mpg com-

THE 2007 WASHINGTON AUTO SHOW

Inside… Media Day Highlights.……p.2&3 Gala Highlights……...…….p.4&5

Congressional Gala Launches 2007 WAS On a Social Note With Many VIPs and Charity Supporters

Throngs of Washington notables from government, industry and diplomatic circles turned out to benefit six Washington charities and tour the 2007 WAS at the Congressional Gala. (See pages 4 and 5 for highlights).

cent subcompact or smaller and about 50 percent being diesel. “I’m not advocating European-level taxes on fuel here. It’s neither politically feasible nor desirable from the perspective of manufac-turers or U.S. consumers,” Zetsche said. “We need a policy that fits the market in America.” He called for a policy that en-courages more technologies and

(Continued on page 6)

Dieter Zetsche (left) opens a well attended WAS Media Day (above).

pared to 24 mpg in the U.S. He noted that the same automakers with access to the same technology sell vehicles in both markets. But European energy policy is based on tough choices. Price at the pump is three times that of the U.S. when high taxes are added and incentives are offered on diesel fuel. And the vehicle mix in Europe is very different from the U.S., Zetsche noted, with 60 per-

DaimlerChrysler Chairman Dieter Zetsche Kicks Off WAS Media Day Chrysler Group Introduces First BLUETEC Diesel

Amid Auto Show Focus on Energy and Environmental Issues

Page 2 WANADA Bulletin # 4-07 January 26, 2007 THE 2007 WASHINGTON AUTO SHOW

From above left, clockwise: D.C. Mayor Adrian Fenty opened Media Day with WAS Chairman George Doetsch, commenting that the show reflected the “hard work and sweat equity” put into it by his prede-cessor, former Mayor Anthony Williams. Marc Stertz, president of the Washington Automotive Press Associa-tion (above center) presented this year’s John Lynker Award to NHTSA Chief of Staff David Kelly for the agency’s outstanding ef-forts in promoting seat belt use and child-passenger safety. Department of Energy Assistant Secretary Alexander Karsner an-nounced $17 million in grants to research battery technology and distribution of alternative fuels, and gave an impassioned plea to focus on “urgent, here and now global energy issues.” Throughout the Media Day, automakers showed various concepts of clean burning, fuel efficient vehicles and called for government to assist in the research to bring these models to the highways. Ford VPs Sue Cischke and Gerhard Schmidt (top right column) re-vealed the Ford Edge with HySeries Drive, the world’s first drivable fuel cell hybrid electric vehicle with plug-in capability. “This vehicle offers Ford the ultimate in flexibility in propulsion technology. We could take the fuel cell power system out and replace it with a down-sized diesel, gasoline engine or any other powertrain connected to a small electric generator to make electricity like the fuel cell does now,” said Schmidt. Toyota’s Highway to the Future – Mobile Hybrid Experience (right column, center) offered show goers an entertaining, interactive exhibit that uses the company’s hybrid synergy technology and Prius, Camry Hybrid and Highlander Hy-brid models to raise awareness of alternative fuels, fuel efficiency, conservation and associ-ated consumer and environmental benefits. Touring nationally, Highway to the Future is an engaging, well-rounded presentation with something for everyone, from environmentally conscious visitor to technology buff. Volkswagen Director of Industry-Government Affairs David Geanacopoulos unveiled the company’s cleanest diesel ever for the U.C., the Jetta TDI. Chevrolet again used WAS Media Day to stage A Tahoe Drive-away (right), which ringed the D.C. Conven-tion Center before parading through the busy streets of downtown Washington with police escort.

International Media Day Highlights

WANADA Bulletin #4-07 January 26, 2007 Page 3

THE 2007 WASHINGTON AUTO SHOW

Media Day Highlights (continued)

NADA, EPA Launch Joint “Energy Stewardship Initiative” NADA Chairman Dale Willey (left) announced the launch of a joint “Energy Stewardship Initiative” between NADA and EPA’s Energy Star Program to help auto dealers improve the energy efficiency of their facilities while lowering costs significantly. Speaking in favor of the program were Congressmen John Camp-bell (R-CA) (center) and Michael Burgess (R-TX) (upper right). Bill Wehrum, act-ing assistant administrator for EPA’s Office of Air and Radiation (right) spoke for the agency. Wehrum said that dealers “are driving energy savings up and costs down, while leading the way to a healthier environment and a stronger economy. NADA’s response to the Energy Star challenge is an example of exceptional leadership at work.”

German Embassy Sponsors “Engines for the Future” Symposium

Innovative, energy efficient technologies in the automobile sector can lead the way out of the West’s “addiction” to oil. But which technology is the most promising? Biofuels, diesel, hybrid, or hydrogen? And how can transatlantic partners cooperate to promote these new technologies most efficiently?

As part of a series of worldwide events, the German Embassy sponsored an afternoon symposium made up of industry experts and leaders who discussed the latest technology trends and private and pub-lic sector initiatives in a vital dialogue.

German Ambassador Klaus Scharioth (right) offered the opening remarks, and Washington Post auto-motive writer Warren Brown (above) served as moderator for the distinguished panel of experts.

This year’s Congressional Gala and Charity Preview was literally a huge success, with throngs of Wash-ington VIPs from government, industry and the diplomatic corps filling the Washington Convention Center to get a “sneak peek” at the WAS, while adding their support for six worthy charities — Adoptions To-gether, Big Brothers/Big Sisters of the National Capital Area, Boys & Girls Clubs of Greater Washington, Parkinson Foundation of the National Capital Area, Primary Care Coalition of Montgomery County, and Victims’ Rights Foundation.

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Congressional Gala Highlights

These partygoers were typical of the upbeat spirit prevalent at the Gala. From left are: WAS Committee Member Don Bavely, NADA President Phil Brady, former WANADA Chairman Vince Sheehy and Mimi Sheehy. Touring the show are WAS Vice Chariman John Ourisman and his wife Lisa.

From left, Gala Chairman Tamara Darvish of DARCARS announced that this year’s event raised “big money” for area charities. Former D.C. Mayor and Honorary Gala Chairman Anthony Williams was honored for his administration’s strong support and instrumental role in taking the WAS to a global level. WANADA Chairman Jack Fitzgerald chats with Washington Post Publisher Bo Jones. The Post has been a longtime sponsor of the Gala, which this year was also sponsored by The Alliance of Automobile Manufacturers, the American International Automobile Manufacturers, NADA and Hargrove Decorators.

Snapshots of an Eminently Successful Gala Scrapbook style, we’ll let the photos of WANADA members and their VIP guests from government, the embassies, the automakers and Washington business community document a great party!

WANADA Bulletin #4-07 January 26, 2007 Page 5 THE 2007 WASHINGTON AUTO SHOW

more choices rather than trying to sell consumers vehicles they don’t want. CAFE regulations, he said, are a contradiction in the largest free market economy in the world. However, changing CAFE regula-tions to reflect size rather than fleet is a modification that automakers

could live with, he added. Zetsche pointed to clean diesels and biofuels as an inno-vative means to clean the air and reduce oil dependence. “Modern diesels can improve fuel economy by 20 to 40 percent, and reduce CO2 emissions by up to 20 percent. Real world tests show that diesel can even be more fuel-effective than gas-electric hybrids, depending on use,” he said.

After his remarks, Chairman Zetsche was joined by Chrysler Group President Tom LaSorda and others to roll out Chrysler’s first BLUETEC diesel. A 2007 Dodge Ram heavy duty truck was unveiled which LaSorda said meets 2010 emissions standards in all 50 states. DaimlerChrysler has had BLUETEC diesels on the road in Europe since 2005 and they have performed well. With the introduction of ultra low-sulfur diesel fuel at the end of last year, Zetsche says three more Mercedes-Benz BLUETEC models – the R, M and GL Class vehicles assembled in Alabama – will arrive next year and they will meet Tier 2/BIN 5 and 50-state diesel emissions standards. EPA was involved in the initial BLUETEC research, precipitating Volkswagen’s and Audi’s alliance with DaimlerChrysler USA (DCX ) to build momentum for clean diesels in the U.S. and elsewhere. However, DCX is not a one-technology company. It has invested more than $1billion in fuel cell technology and is the world leader in hybrid bus production, which is operating in New York, New Jersey, San Francisco and Toronto.

In cooperation with GM and BMW, DCX is developing a two-mode, full hybrid propulsion for applications in Chrysler Group, Mercedes Car Group, GM and BMW. The first DCX to use a ticket-to-ride in the HOV lanes gives hybrids an unfair edge in the market place. The unintended consequence may be losing out on other tech-nologies that could be a better answer. Stop-and-go city driving is the realm of the hybrid, but heavy hauling and long distance runs, routine for many Americans, are suited to clean diesels.

As the lights dimmed and music came up in the DaimlerChrysler exhibit, a bright red 2007 Dodge Ram HD pickup, powered by a 6.7 liter Cummins engine, drove into the spotlight, as Chrysler Group unveiled its first BLUETEC vehicle.

Bill Wehrum, acting assistant administrator of the EPA, praised the vehicle and DaimlerChrysler for its leader-ship and forward thinking in this alternative fuel technology.

Thought for the Week…

The best progress toward policy objectives comes when lawmakers and automakers work closely to achieve the desired result.

--Dieter Zetsche

DaimlerChrysler chose the 2007 WAS to unveil Chrys-ler Group’s first BLUETEC diesel vehicle. From left are: Chrysler Group President and CEO Tom LaSorda, EPA’s Bill Wehrum, Cummins President Joe Loughrey and DaimlerChysler Chairman Dieter Zetsche.

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Zetsche (Continued from page 1)

Chrysler Group Reveals Its First BLUETEC Diesel: A 2007 Dodge Ram That Meets 2010 Emissions Standards