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We also want to avoid unfair competitive distortions between car manufacturers. We support the Commission’s approach for setting CO2 targets for individual car manufacturers, and we also welcome the proposed derogation for manufacturers who only sell cars in small volumes. We believe that it is also important to add a provision to the regulation to ensure that ‘niche’
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manufacturers (those that only make a narrow range of vehicle types) whilst being subject to challenging targets, are not unfairly penalised.

We are seeking views over the coming months on our underlying analysis and negotiating position via a public consultation. This consultation closes on Friday 3 October 2008, but in the interim the Government will continue their discussion and negotiations at the European level, during which we may have to take further decisions on our negotiating position. We therefore encourage early responses from stakeholders.

Copies of the consultation document and accompanying impact assessment are being sent to the House Library.

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