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"Both diesels and hybrids must meet certain emissions certification levels to qualify: Smaller vehicles must have a Federal emissions rating of Tier 2 bin 5 or better, and larger ones must achieve Tier 2 bin 8, a less stringent requirement. While most hybrid vehicles already meet the emissions requirement, no diesels are currently rated cleaner than bin 9. Diesels will probably reach the magic numbers with the introduction of ultra-low sulfur fuel that hit the pumps in late 2006. ACEEE expects the '08 Mercedes-Benz E320 BlueTec diesel to qualify for a $1,300 tax credit running on low sulfur fuel.
Legislators hope the tax credits will increase the variety and classes of hybrids available to consumers. If gas prices head for the rarified air over $3 a gallon, consumers will be dumping greater shares of their budgets down the tank. That scenario could fuel resurgence in hybrid sales. Toyota's President Katsuaki Watanabe announced plans to sell a million hybrids a year by the end of the next decade, or about 600,000 hybrids in the U.S. To reach that goal, about a quarter of the automaker's vehicles would have to be hybrids. The automaker added a hybrid Camry to its '07 lineup that began sales last year. The Camry sold quickly and the tax credit dropped from $2,600 to $1,300. Both 2wd and 4wd versions of the Highlander Hybrid also sold crisply and their tax credit fell from an initial $2,600 to $1,300. Selling hybrids as a mainstream vehicle still depends upon the price of gas and environmental concerns overcoming the $3,000 to $5,000 premium on these models."
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"Both diesels and hybrids must meet certain emissions certification levels to qualify: Smaller vehicles must have a Federal emissions rating of Tier 2 bin 5 or better, and larger ones must achieve Tier 2 bin 8, a less stringent requirement. While most hybrid vehicles already meet the emissions requirement, no diesels are currently rated cleaner than bin 9. Diesels will probably reach the magic numbers with the introduction of ultra-low sulfur fuel that hit the pumps in late 2006. ACEEE expects the '08 Mercedes-Benz E320 BlueTec diesel to qualify for a $1,300 tax credit running on low sulfur fuel.
Legislators hope the tax credits will increase the variety and classes of hybrids available to consumers. If gas prices head for the rarified air over $3 a gallon, consumers will be dumping greater shares of their budgets down the tank. That scenario could fuel resurgence in hybrid sales. Toyota's President Katsuaki Watanabe announced plans to sell a million hybrids a year by the end of the next decade, or about 600,000 hybrids in the U.S. To reach that goal, about a quarter of the automaker's vehicles would have to be hybrids. The automaker added a hybrid Camry to its '07 lineup that began sales last year. The Camry sold quickly and the tax credit dropped from $2,600 to $1,300. Both 2wd and 4wd versions of the Highlander Hybrid also sold crisply and their tax credit fell from an initial $2,600 to $1,300. Selling hybrids as a mainstream vehicle still depends upon the price of gas and environmental concerns overcoming the $3,000 to $5,000 premium on these models."
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