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• New car CO2 emissions cut by biggest ever margin
• West Midlands jobs 'safeguarded' by Jaguar XJ model says Accelerate

Average new car CO2 emissions fell by their biggest ever margin last year with the impact of recession and the Scrappage Incentive Scheme boosting the continued influence of technological advances made by vehicle manufacturers, according to the annual New Car CO2 Report released today by the Society of Motor Manufacturers and Traders.

The average new car sold in the UK in 2009 emitted just 149.5g/km of CO2, down 5.4% on the 2008 figure and 21.2% better than the 1997 base level. The rate of reduction was the best on record, three times the average rate achieved since data was first measured in 1997.

Reductions in average emissions were made across all model segments with MPVs

(-28.6%) and 4x4s (-27.4%) making the biggest improvement against their 1997 base levels. Minis and specialist sports cars made the biggest reduction over the past year falling 6.7% and 6.3% respectively on 2008 figures.

2009 saw the 12th successive annual drop in average new car CO2 emissions, but the rate of decline was increased by the recession and subsequent Scrappage Incentive Scheme steering buyers towards more fuel-efficient models. The average car bought under the scheme emitted just 133.3g/km, 26.8% less CO2 than the average scrapped car.

In total, 27.6% of the cars registered in the UK in 2009 emitted less than 130g/km, the target set in the European CO2 regulation for 2015. In addition, showing the influence of the CO2-based road tax system, Band E (131-140g/km) proved the most popular with new car buyers, compared to Band H (166-175g/km) in 1997.

Commenting on the report Paul Everitt, SMMT chief executive said; “Vehicle manufacturers have invested heavily in both improving conventional technologies and bringing advanced systems to market that reduce the environmental impact of new vehicles. Whilst scrappage incentives made a positive contribution to fleet renewal in 2009, there is a risk that over the next few years, motorists may be deterred from investing in the latest technology. Developing a long-term and consistent approach to vehicle taxation and environmental incentives will be important in maintaining the current rate of improvement.”

The adoption of the new car CO2 regulation in December 2009 set a phase-in target for vehicle manufacturers to ensure their average fleet emissions do not exceed 130g/km by 2015.

About 2,000 manufacturing jobs in the West Midlands have been safeguarded by production of the new Jaguar XJ, a car industry advisory group has said.

Jaguar Land Rover (JLR) said the model was vital to helping it survive the recession and had also helped the region's car components industry.

It has employed 400 staff for the XJ production, which is being assembled at Castle Bromwich in Birmingham.

Car industry body Accelerate said every JLR job supported five others locally.

Rachel Eade, from Accelerate, which provides support and advice to the automotive industry, said: "The XJ is important to the supply chain across the whole region and across the country.

"It's a new vehicle that's being launched as we come out of the very difficult period. It's anticipated volumes would put production back into what we would call high volumes, large numbers, which means security of jobs and a chance of innovation in manufacturing."

Matt Dhillon, a plant manager for Lear, a Coventry-based firm which makes seats for a variety of JLR models, said: "Winning the XJ work has secured 90 plus jobs here.

"From where we were in 2008/2009 it's a big coup for us to win the replacement business. It secures the jobs in the area, so the area becomes more buoyant."

The seat manufacturer is classed as a 'first tier' supplier because it supplies parts directly to JLR factories, but across the West Midlands there are hundreds of firms that have contracts with JLR suppliers.

Birmingham-based Lander Automotive, which makes metal frames which support Lear's seats for the XJ, said the new model had been a source of extra orders.

It said the sale of JLR to the Indian firm Tata also meant more orders were being placed locally.

Its managing director, Roger Whitehouse, said: "The local executive management at JLR now place purchase orders wherever they think is the best place for their business. Previously under the other ownership the work would not have been placed locally."